The dynamics of the strategic network relations between corporate R&D and business: A longitudinal analysis in a large, technology-based multinational company

Abstract

The present paper addresses the important issue of the management of the strategic network relations between corporate R&D and business in large divisionalized companies. In a large technology-based multinational company (± 30,000 employees) an instrument that provides regular feedback to both corporate R&D and business about strategic alignment, based on factors derived from the competence perspective and the network theory, has been tested in a longitudinal survey from 1997 through 2002 (696 respondents). It is concluded that a combination of both theoretical perspectives adds to a more in-depth understanding of the mechanisms at work in the complex R&D-to-business relations. The improved network communication based on structured feedback related to the level of R&D competencies as well as the level of R&D flexibility and information lead to better strategic alignment. It was further concluded that a governance structure that effectively balances the short-term orientation (via business unit funding) and the long-term orientation (via technology board funding) is effective to provide strategic alignment between R&D and business.