Interpersonal trust between marketing and R&D during new product development projects(Massey, 2007. EJM)

Introduction

1. Cross-functional relationships are vital during new product development (NPD) because NPD involves converting abstract ideas into tangible products. NPD requires interdependent specialists to provide or exchange resources such as information, expertise, and money (Lawrence and Lorsch, 1967; Olson et al., 1995), and cross-functional relationships facilitate these exchanges. 

2.  Weber’s(1924) bureaucratic dimensions are relevant because this theory suggests that different work situations require different combinations of these variables. Routine tasks such as normal production runs, for example, require only “mechanistic” structures, i.e. high formalisation and centralisation. In contrast, in situations of high task uncertainty, or where creativity and innovation are required (e.g. NPD projects), more “organic”, less formalised and centralised structures are appropriate (Burns and Stalker, 1961; Olson et al., 1995)

3.  Several communication dimensions are known to affect working relationships, and we examine three of these:

(1) communication frequency;

(2) bi-directionality; and

(3) quality.

Interpersonal Trust

4.  The importance of trust in behavioural research is reflected in the range of disciplines which examine this construct (e.g. economics, psychology, management, and marketing)

5.  Trust between interdependent actors helps coordinate actions, and improve effectiveness within, and between organisations. The social exchange literature suggests that trusting behaviours signal interest in, and commitment to relationships, while the marketing channels literature identifies trust as an important contributor to effective

buyer-seller relationships. Similarly, in the relationship marketing literature, Morgan and Hunt (1994) identify trust as a key variable mediating effective relational exchange.

6.  Trust is important in cross-functional relationships because managers are boundary spanners who need to develop horizontal ties within the organization (Gabarro, 1990; McAllister, 1995). Overall firm performance can be improved where there is interpersonal trust between managers, because trust can improve cross-functional cooperation, coordination, and organizational decision-making.

7. Trust also facilitates informal cooperation and coordinated social interaction, and reduces the need to monitor

others’ behaviour, formalise procedures, or create specific contracts (Williams, 2001).

8.  McAllister (1995) found that peer managers who trust each other are more sensitive to each other's personal and work-related needs. In particular, they are less likely to engage in 'control-based monitoring', i.e. trying to manage the inherent uncertainty when they cannot count on the reliability of the other manager. Interpersonal trust can also increase 'organizational citizenship behavior', and which helps organizational functioning.

7.  Interpersonal trust also increases “need-based monitoring”, i.e. a sensitivity to and keeping track of colleagues’ needs (Clark et al., 1989). Trust can also increase “interpersonal citizenship behavior”, i.e. increased assistance, a desire to help peers meet personal objectives, and the tangible expression of care and concern (McAllister, 1995).