Developing new product in small manufacturing firms: the role of internal and external integration

Developing new product in small manufacturing firms is a crucial source of competitive advantage. However, despite the undeniable importance of this issue, the determinants of integrated product development approach are not well understood. This paper contributes to this research gap with theoretical and empirical findings. Firstly, a research model on integrated product development (IPD) is identified. The proposed model represents a conceptualization of IPD principles as consisting of three groups of integration enablers, which aim to achieve high internal and external integration. Secondly, a multiple case study approach is used to explore practices in adopting integrated product development in the SMEs of the machine tool sector. The investigation of a group of SMEs highlights the importance of integration at three different levels and the presence of key difficulties in managing integration in machine tool sector.