Internal and External Integration Essay
While studies have tried to show the positive impacts of internal integration and external integration on explorative innovations, due to the fact that internal integration and external integration together improve product innovations and exploitative innovations have a positive effect on explorative innovations, there are no comprehensive empirical evidence or theoretical explanation to show or support this argument (Lau et al., …show more content…
Theoretical model and hypothesis
The effects of internal integration and external integration on production innovation have been largely studied separately. Troy et al., (2010) states that internal integration is known to have a positive effect on the performance of new product development and innovation through interaction, information sharing, communication, coordination and collaboration across functional departments.
External integration involves similar efforts between customers and suppliers which can support joint development of new products (Lau et al. 2010). The above studies, loosely draw theoretical foundations from organizational information processing theory and relational view theory to support their arguments (Wong et al. 2011). So far, most empirical studies have corroborated with these theories except for Ragatz et al (2002) and Scannell et al. (2000). Additionally, there is no study conducted that compares the effects of internal integration and external integration on product innovation.
While the individual impacts of internal integration and external integration on some aspects of product innovation have been previously studied their combined effects are less understood. This is partly due to the existence of conflicting perceptions and the lack