Inter‐functional Integration and Industrial New Product Portfolio Decision Making: Exploring and Articulating the Linkages

Abstract

This study investigates the relationship between the nature of inter‐functional integration and industrial new product/service portfolio decision making. While inter‐functional integration has been widely researched, there is little understanding of its influence on resource allocation decisions within the context of a broad portfolio of development projects. The detailed activities and decisions underpinning the inter‐functional management of the new product portfolio, as well as three specific new product/service projects, at a large European industrial product manufacturer are analysed. Detailed findings are provided. Two critical inter‐functional dimensions – functional domination and nature of evaluation criteria – are derived and discussed. Implications for managerial action are given.

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