NPD processes in fast growing companies : A case study exploring the implications of organizational structure, communication and culture.

Abstract: This study examines how the organizational structure affects New Product Development (NPD) in mature companies that enter a fast-growing phase. A case study with interviews and a workshop was conducted in a company in south of Sweden in addition to studying the current literature. This company is currently experiencing fast growth and is therefore facing new challenges. The fast growth in the recent years has affected the NPD processes, organizational structure, culture, and communication according to its employees. The literature argues that there must be a balance between the NPD and organizational structure to ensure performance. Each organization must have a structure that complements the NPD processes to maintain high performance.   Furthermore, communication affects NPD projects' performance, and for organizations experiencing fast growth, communication has an even more significant effect on performance. Mature organizations tend to hold on to existing organizational structures and processes, which can become troublesome when entering a fast-growing phase, as fast-growing companies need to invest in the future. As the research is lacking regarding fast-growing companies, this in-depth study explores the correlation between NPD, organizational structure, communication and culture for fast-growing companies. This case study found that the internal culture positively impacts innovation, along with the need to modify the organizational structure and NPD processes as it grows, and when growing fast, communication plays a vital role. In conclusion, we can see an interconnection between organizational structure, culture, and communication, for facilitating NPD performance, where communication is the red thread that facilitates or hinders, depending on its quality.