Product and process innovation in process industry: a new perspective on development

Purpose – The purpose of this paper is to open up the research and development (R&D) organisation by separating product and process innovation and exploring these activities in terms of the structural variable of centralisation versus decentralisation. Design/methodology/approach – Case studies of three multinational firms, representing food and beverage, mining and minerals, and pulp and paper industry. Findings – Dual structures may exist within the R&D organisation, one for product innovation and one for process innovation. Consequently, it is suggested that the conventional notion of R&D organisational design, equating R&D more or less with product innovation, does not present a complete picture for many firms. Research limitations/implications – Opening up the R&D organisation will help further the understanding link between the organisational structuring of product and process innovation, and the efforts of organisations to develop resources and competitive advantages. Practical implications – The findings have implications for managing the strategy‐organizational fit concerning innovation in process industry. Originality/value – The conventional view regarding R&D as a single entity – either centralised or decentralised – does not present a complete picture. This paper clarifies the link between strategic innovation determinants and the organisational configuration of R&D.