Communication flows in international product innovation teams

Recently, we have witnessed a strong growth in the internationalization of many firms' product development activities. However, the lack of attention devoted by scientific research to the management of international innovatio n contrasts sharply with the importance attached to it as a cornerstone of international business success, Although several empirical studies and norm ative theories have specified the communication requirements in innovation teams, an empirically based insight is definitely needed on the communicati on requirements and requirements that prevail in the complex context of int ernational innovation teams, in which the participants are located in diffe rent company units, countries, and cultures. This article addresses the following research question: viewing internation al innovation as an interfunctional activity, what are the communication re quirements an international innovation team is facing, and what are the com munication capabilities (interface mechanisms) that may be adopted to initi ate develop, and launch the new product effectively and efficiently? An ext ensive case study, research project was designed to develop a comprehensive theoretical framework. Over a two year time period the research team has i nvestigated selected innovation projects in four European multinational cor porations. The analysis of the case study darn suggests five requirements that determi ne the effectiveness and efficiency of communication in international produ ct development teams: network transparency! knowledge codification knowledg e credibility, communication cost, secrecy. To cope with these communicatio n requirements, organizations may create firm level capabilities (parallel structures, cross-functional and inter-unit climate, communication infrastr ucture, goal congruence) and team level capabilities (core team, team leade rship, formalization procedural justice). The evidence from the in-depth ca se study research indicates that these mechanisms provide a parsimonious an d powerful approach to address the communication requirements in internatio nal product innovation teams. After the information processing framework pr oposed by Tushman and Nadler [124], the adoption of these mechanisms is exp ected to improve innovation effectiveness. This holds important consequences for the management of international produ ct innovation projects. First, the innovating firm must balance centralizat ion and decentralization, employ formal as well as informal strategies, and integrate ad-hoc and permanent strategies. Second, it highlights the criti cal role of the project leader. Given the fact that companies often select the most available person, rather than the best person for the job, the all ocation of light weight project leaders may create heavyweight problems in international teams. Third, following the argument in favor of procedural j ustice, the absence of involvement may severely, hinder cross-functional co mmitment to international innovation projects. Fourth, the innovating firm must also actively manage the communication flows with external parties. Fa ilure to do so may result in flawed specifications, and a limited understan ding about product design and market strategies. (C) 2000 Elsevier Science Inc.