Preserving the link between R&D and manufacturing: Exploring challenges related to vertical integration and product/process newness

Adopting a contingency framework, this paper explores consequences of manufacturing outsourcing and product/process newness for R&D–manufacturing coordination. Based on case-study findings, the following coordination challenges are outlined: accessing manufacturing competence and understanding suppliers’ processes (outsourcing of manufacturing and high newness); receiving feedback from suppliers and motivating suppliers (outsourcing and low-medium newness); exploiting manufacturing competence and establishing close working relations (internalization of manufacturing and high newness); early involvement of manufacturing and suppliers, and reducing variability in supplier performance (internalization and low-medium newness). The paper further elaborates on how the role of purchasing may change in order to address these challenges. & 2009 Elsevier Ltd. All rights reserved.