Learning from International Joint Product Development Work: The Role of Resources

Abstract

International joint product development projects have gained much attention in recent years. In analysing factors that contribute to the successful completion of such projects, I tease out the effects of geographical dispersion, resource limitations, alliance capabilities and learning on project performance. International joint product development forces organizations to face a key decision between developing products in house and outsourcing the development process while managing project costs and coordinating project tasks across borders. Utilizing a data set spanning 20+ years in drug development, I observe the effects of geographical dispersion, learning from joint work and resource limitations on the performance of joint product development projects. I examine project characteristics that relate to resource fungibility and complexity and how organizations streamline their work activities while working with multiple international locations. My findings show that there is a commensurate cost of managing joint product development projects across multiple international locations, however, such dispersion also brings about the benefits of accessing resources in distinct locations. Furthermore, the negative impact of geographical dispersion on project performance can be overcome when the lead organization has learned to manage such projects through prior experience. I detail these findings and elaborate on its implications for theories on internationalization, learning, coordination and resources.