The effect of the marketing-R&D interface on new product performance: the critical role of resources and scope

Although the integration of marketing with R&D is widely recognized as a critical factor for a new product's success, this study shows that not all companies benefit equally from more integration. Using data from the worldwide pharmaceutical industry, the authors show that integration is particularly effective in conjunction with high levels of new product development resources. In addition, the effect of the interaction between integration and new product development resources is stronger for companies with a narrow strategic scope. So, although broadly focused companies often have an advantage with respect to innovation because they can more easily leverage resources to different markets, our results indicate that narrowly focused companies can compensate for this by developing and integrating their marketing–R&D interface.