The effect of Cross-Functional Integration in the New Product Development process : A study of internal efficiency in volatile contexts

Purpose - This research contributes to the new product development conversation by investigating different firms’ new product development processes in volatile contexts, to better understand the way Cross-Functional Integration impacts internal efficiency. Method - We conducted a qualitative study and interviewed product managers and product owners responsible for the development of digital products. Findings - Our main contribution lies in examining different structures and their viability in volatile contexts. Our findings bring nuances to prior research that indicate appropriate ways of implementing cross-functional integration. We found that the team structure could be determined by the availability of resources and the size of the firm, and not solely depend on the nature of the context. Originality - The study provides a different view on internal efficiency where the managers emphasize product superiority and development time as priority and factors for increased new product development performance. Consequently, development cost is not as prioritized as indicated in previous research and seems to be left out as an objective, which we conclude may stem from the digital nature of the product.