The impact of R&D & Marketing integration on innovation and business performance in French food processing companies

The globalization and the rapid changes of consumers' needs make the food industry turbulent. Companies have to become more market-oriented and to implement an adequate innovation strategy to respond to these changing needs. In management literature, cross functional integration, especially between R&D & Marketing, is thought to be crucial to achieve better market-oriented innovation and ultimately better business performance and success in the market place. It is the aim of this study to show the impact of integration barriers and mechanisms on R&D & Marketing integration and consequently on innovation and business performance. A questionnaire survey in 30 French food processing companies with more than 120 employees and 3 in-depth interviews with two R&D directors and one Marketing director were conducted in order to get specific insights in R&D & Marketing integration in French food processing companies. R&D & Marketing integration positively impacts innovation and business performance in the participating French food processing companies. The quality of R&D & Marketing integration is impacted by integration barriers and mechanisms such as communication and cooperation, organizational structure (i.e. cross functional teams), the sharing of goals, formal integrative management processes, language, ICT (Information Communication Technology) tools, informal social systems (e.g. trips and group events) and well balanced incentives and rewards