Cross Functional Integration between Organizational Structure and the New Product Development Process

Substantial research has explored the influence of organizational structure on new product development (NPD) during the planning phase but it has rarely been considered in the execution phase through cross functional integration. This study aims to investigate the mediating effect of cross functional integration between organizational structure and the NPD process. The study used a survey instrument to collect cross-sectional data of 247 participants from the telecommunications industry of Pakistan. We employed correlation and regression analyses to investigate interrelationships among the variables and test the research hypotheses. The findings indicate that the organic structure of the organization has a positive impact on the NPD process during the execution phase and cross functional integration mediates between the relationships to improve the effectiveness of organizations. Moreover, cross functional integration partially mediates between mechanistic structure and the NPD process.