How do R&D sub-units contribute to and hinder customer value proposition development?

Sammanfattning

Purpose: This study explores how sub-units within the R&D function contribute to customer value proposition development (CVPD), and what barriers and frictions exist among them, hindering CVPD. Existing CVP research has primarily adopted a functional-level perspective, treating R&D as homogenous, which risks overlooking how distinct sub-units contribute to and hinder CVPD. Method: A qualitative exploratory single-case study was conducted at Alpha, a large industrial equipment manufacturer engaged in complex product development. Primary data was collected through 22 interviews with managers and employees across hardware development (HWD), software development (SWD), and verification and validation (V&V). Data were analyzed through thematic analysis. Findings: Each sub-unit contributes uniquely to CVPD. HWD contributes technical expertise, holistic product understanding, and end-user insights. SWD contributes through software expertise, innovation spillover effects, and improved cross-unit collaboration. V&V contributes product knowledge, customer and end-user perspective, and product feeling expertise. A total of 17 barriers were identified, many of which hindered CVPD through inhibiting collaboration, causing delays and product development with poor customer fit. Theoretical contributions: The study extends CVPD literature through an intra-functional perspective, showing that R&D should not be treated as homogeneous, and identifies holistic product and application knowledge as an underexplored dimension as a firm-based resource. Practical implications: Managers should focus on cross-sub-unit collaboration, build holistic product and application knowledge throughout R&D, dedicate V&V more resources and earlier involvement, and improve specifications by incorporating customer-value information. Limitations and future research: Findings stem from a single case in one industry, limiting transferability. Future research could conduct multiple-case studies, integrate customer perspectives, examine market-R&D integration at the sub-unit level, and combine qualitative analysis with performance data over time. Keywords: Customer value proposition, CVP development, R&D sub-units, complex product development, hardware development, software development, verification and validation, cross-unit collaboration.