How the Japanese Manage the R&D–Marketing Interface

Abstract

Many studies of new product success and failure indicate that the level of R&D--marketing integration critically affects new product success rates. In this context, R&D--marketing integration refers to the extent to which marketing and R&D share information, as well as how closely R&D and marketing work together on specific new product development tasks. Recent studies have identified a series of conditions that can facilitate or hinder R&D--marketing integration. These include: The quality of R&D--marketing relations, organizational structure, senior management attitudes and actions, and the organization of new product activity (1,2). Do these same factors affect the level of R&D--marketing integration in Japanese high-technology firms? The answer to this question is important for two reasons. First, recent reports in the business press observe signs that the Japanese are beginning to surge past the U.S. in creativity (3). Second, some authorities on Japanese new product development practices have argued that, relative to their counterparts in U.S. firms, Japanese marketing and R&D departments experience less interdepartmental conflict (4). Unfortunately, we know less than we would like to about the R&D--marketing interface in Japanese firms. In part, the gaps in our knowledge arise from the fact that most explanations of Japanese practices rely heavily on anecdotes and case studies. As a result, we have snapshots depicting the practices of individual firms, but little feel for whether these snapshots accurately describe the practices of the larger population of Japanese firms. To provide a better understanding of the determinants of R&D--marketing integration in Japanese firms, we surveyed 411 Japanese R&D managers in a variety of high-technology industries. We asked respondents to indicate the level of integration in their own division and to provide information regarding management practices in their division (see box, page 34). The data provided by the 274 Japanese R&D managers who responded to our survey indicate that new product programs in high-integration Japanese firms are more successful than similar programs in low-integration firms. Our findings also indicate that the level of R&D--marketing integration in Japanese firms is influenced by the quality of R&D--marketing relations, the organizational structure of Japanese firms, and by the attitudes and actions of Japanese senior management (Table 1). (Table 1 omitted) Surprisingly, however, our analysis revealed few differences in the ways that high-integration and low-integration Japanese companies organize their new product development activities. R&D--MARKETING RELATIONS Studies of new product projects in U.S. firms have reported that new product success rates were highest when R&D--marketing relationships were harmonious, meaning that party had great professional regard for the other, each felt that the was competent in their respective areas, each felt dependent upon the other, and each felt very trusting and open toward the other (5, p. 71). This mutual respect and trust affected the nature of R&D--marketing interactions, the timing of joint involvement, and the resolution of interdepartmental conflicts. Our data suggest these same factors affect the level of R&D--marketing integration in Japanese high-technology firms. 1. GIVE-AND-TAKE INTERACTIONS.--Various descriptions of Japanese management practices leave the impression that, regardless of the level of R&D--marketing. integration, employee interactions typically involve respect, commitment and the recognition of shared dependence. In part, employee interactions in Japanese firms reflect the fact that the ability to work well with fellow employees is the most important criterion for promotion decisions (6). By encouraging employees to consider the implications of current interactions on future relations, lifetime employment practices may also spur harmonious relations and reduce conflict(7). …