Organizing virtual R&D teams: towards a contingency approach

Local know-how centers and local markets have led to a strong decentralization of R&D. Supported by modern information and communication technology (ICT), decreasing development duration and increasing cost pressures have connected decentralized R&D activities to form transnational R&D processes. "Virtual project teams" are spread out over several locations, their boundaries expand and shrink according to their responsibilities and they are heavily supported by modern ICT. However, despite the growing literature on virtual organizations, little research has been done on the project organization of virtual teams in R&D. Most authors stress the importance of informal or soft coordination tools in addition to traditional project management methods, but it is still unclear how and when these tools should be used to organize and manage multi-site R&D projects. International R&D managers are concerned over traditional project management education for transnational innovation processes, the high operation costs of multi-site R&D, the involvement of different stakeholders, high termination risk and difficulties to ensure effective transfer of know-how and technology. A framework based on fundamental aspects of decentralized innovation is missing for virtual R&D teams. This investigation is based on 204 interviews with R&D directors and project managers in 37 technology-intensive multinational companies between 1995 and 1998. In-depth case research has been done in order to verify the identified models and determinants of virtual R&D teams.