Mobilizing resources in product development by organizational interfaces across firms, units and functions

Abstract

Purpose This paper aims to investigate how various organizational interfaces between firms, units and functions, and the interplay between them, are developed and mobilized in product development processes. Design/methodology/approach The theoretical framework is based on the industrial network approach, including interactive resource development and the concept of organizational interfaces. A single case study is conducted at a world-leading industrial tool manufacturer, illustrating how resources are combined over time, crossing boundaries of firms, units and functions in the development of a hand-held digitalized tool for quality assurance in the production of cars. Data have been collected through semi-structured interviews, with additional data in the form of project reports, internal documents and practices for external collaboration. Findings In addition to inter-organizational interfaces, the study identifies a typology of scouting, embarking and integration interfaces at unit level (geographically spread units of one multinational corporation) and interpretation and reciprocal interfaces at function level. The conclusions show that these interfaces affect the outcome of three aspects of the product development process: product characteristics and functionality features, system integration and organizational network extent. Existing interfaces serve as a platform for developing interaction further and provide the interfaces with new content, thus moving between different types of interfaces. Product development processes also involve new interfaces where there was no previous interaction between the parties. Research limitations/implications This research has implications for the interplay between interfaces in cases involving multiple external and internal actors in resource combining efforts. Practical implications External interactions between firms influence and impact internal activities and resources. Managers need to be aware of the complex interdependencies between external and internal interfaces and resources. Managing organizational interfaces is about both exploiting established interfaces and developing new ones. Consequently, existing interfaces may be activated differently to align with new interaction purposes, which, in turn, requires efforts to combine resources according to the new conditions. Originality/value Previous research contains a typology of organizational interfaces between customers and suppliers. The study expands on this research by identifying internal interfaces between units and functions.

Sales capability creation during new product development – early involvement of sales

“…Sales has a role in providing field-level intelligence to the NPD process (Morgan et al, 2019;Sundquist and Melander, 2021). Sales help research and development (R&D) to connect with key customers and supports in finding the best trial partners.…”

The role of public actors in construction logistics: effects on and of relational interfaces

“…The framework has earlier been applied in industrial contexts with very clear roles regarding the supplier-customer interaction and only private actors (e.g. Araujo et al 2016, Andersen and Gadde 2019, Sundquist and Melander 2020. Though, here we show that the performance indicators are dependent on the context of the triad.…”

“…The framework is based on and has been applied in industrial contexts with very clear roles regarding the supplier-customer interaction (e.g. Araujo et al 2016, Andersen and Gadde 2019, Sundquist and Melander 2020 and identifies four types of relational (customer-supplier) interfaces based on how customers and suppliers relate their resources to each other. The point of departure is that firms are dependent on the resources controlled by others, and customers get access to resources controlled by suppliers by their supplier relationships.…”

Resource renewal in heavy business networks: the case of Modvion starting up in the Swedish wind energy context

“…Through studying interfaces, an understanding is gained of how a resource is used at a certain point in time and how this has developed over time (Harrison and Håkansson, 2006). There are different types of resource interfaces: physical or technical resource interfaces (Dubois and Araujo, 2006), organisational resource interfaces (Sundquist and Melander, 2020) and mixed resource interfaces between technical and organisational resources (Harrison and Håkansson, 2006; Jahre et al , 2006). Physical interfaces always require organisations to manage them, and this highlights the importance of mixed interfaces and the special role they play in creating economy from physical resources.…”