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APR  181989 


14 
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WORKING  PAPER 
ALFRED  P.  SLOAN  SCHOOL  OF  MANAGEMENT 


Beyond  Boundary  Spanning:   Managing  External 
Dependence  in  Product  Development 
Teams 

By 

Deborah  G.  Ancona 
David  Caldwell 


WP  2103-89 


March  1989 


MASSACHUSETTS 

INSTITUTE  OF  TECHNOLOGY 

50  MEMORIAL  DRIVE 

CAMBRIDGE,  MASSACHUSETTS  02139 


Beyond  Boundary  Spanning:   Managing  External 
Dependence  in  Product  Development 
Teams 

By 

Deborah  G.  Ancona 
David  Caldwell 

WP  2103-89  March  1989 


Beyond  Boundary  Spanning:  Managing  External  Dependence  in 
Product  Etevelopment  Teams 


Deborah  Gladstein  Ancona 

Sloan  School  of  Management 

M.I.T. 

Cambridge,  MA.   02139 


David  Caldwell 

Leavey  School  of  Business  and  Administration 

Santa  Clara  University 

Santa  Clara,  CA.   95053 


Beyond  Boundary  Spanning:  Managing  E>±emal  Dependence  in 
Product  Development  Teams 

ABSTRACT 

Data  from  409  members  of  45  new  product  teams  in  five  hi^- 
technology  conpanies  indicate  the  existence  of  four  sets  of  boundary 
management  activities  which  can  be  labeled  Ambassador,  Task  Coor- 
dinator, Scout,  and  Guard.  These  activities  are  related  to  the 
frequency,  type,  and  destination  of  communications  between  team  members 
and  others.  This  paper  describes  these  activities  and  examines  the 
irrpact  of  individual  and  environmental  variables  on  the  frequency  in 
vAiich  individual  team  members  engage  in  them. 


Introduction 

The  development  of  new  products  is  a  critical  challenge  for  many 
organizations.  For  conpanies  in  highly  conpetitive  technology-based 
industries,  the  issue  is  not  solely  the  introduction  of  new  products 
but  also  how  to  accelerate  the  product  development  process  (David, 
1984) .  One  popular  technique  for  shortening  product  development  cycles 
is  the  use  of  teams.  Teams  are  recommended  as  a  way  to  improve 
coordination  within  the  organization  (Hackman  &  Walton,  1986;  Kanter, 
1983;  Kazanjian  &  DrBzin,  1987)  and  to  speed  product  development  by 
promoting  the  closer  coupling  of  organizational  functions  necessary  to 
move  from  a  sequential  to  a  parallel  development  process  (Van  de  Ven, 
1986) .   For  these  advantages  to  be  realized,  new  product  team  members 
must  effectively  interact  with  other  functional  areas  and  h  i.erarchical 
levels  in  the  organization.  In  this  paper,  we  attempt  to  describe  the 
pattern  of  activities  in  which  team  members  engage  in  dealing  with 
outsiders  and  identify  some  of  the  factors  that  contr.ibute  to  the 
frequency  in  vAiich  individual  team  members  engage  in  these  activities. 
Boundary  Management  in  New  Product  Teams 

To  be  successful,  new  product  teams  must  obtain  information, 
resources,  and  support  from  others,  both  inside  and  outside  of  the 
organization,  use  that  information  to  create  a  viable  product,  and 
finally  transfer  the  technology  and  enthusiasm  for  the  product  to  those 
who  will  bring  it  to  market  (Ancona  &  Caldwell,  1987;  Burgelman,  1983; 
Quinn  &  Mueller,  1963) .  This  makes  the  new  product  team  highly 
dependent  upon  others,  and  suggests  that  an  important  way  of  under- 


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standing  the  performance  of  these  teams  lies  in  examining  how  they 
manage  relationships  with  other  groups. 

Some  previous  researchers  have  partially  taken  this  approach  and 
examined  the  pattern  and  flov;  of  scientific  communication  into  R&D 
teams  (Allen,  1984;  Ebadi  &  Dilts,  1986;  Ebadi  &  Uttertoack,  1984;  Katz, 
1982;  Tushman,  1977,  1979) .  These  studies  have  documented  a  relation- 
ship between  the  acquisition  and  transmission  of  information  by 
boundary-spanning  individuals  and  performance  of  the  group.  For 
exanple,  greater  communication  with  organizational  colleagues  outside 
the  group  occurred  in  high  performing  R&D  project  teams  than  in  low 
performing  teams  (Allen,  1984) .  Tushman  (1979)  found  that  communica- 
tion in  high-performing  development  teams  followed  a  two-step  pirocess, 
with  communication  "stars"  first  obtaining  information  from  outside  the 
group  and  then  translating  that  information  and  transmitting  it  to  the 
group. 

Although  extremely  useful,  this  research  has  focused  on  the 
inportation  of  technical  information  into  the  group  and  not  on  the  full 
range  of  interactions  between  a  team  and  its  environment.  A  broader 
conceptualization  of  boundary  activities  would  include  the  ccnplete  set 
of  activities  necessary  to  build  support  for  the  embryonic  product, 
shape  the  demands  of  others,  and  coordinate  the  product's  development 
with  other  groups.  As  Bagozzi  (1975)  has  observed,  exchange  theory 
suggests  that  when  a  system  is  characterized  by  an  interconnecting  web 
of  relationships,  such  as  those  necessary  for  product  development, 
broad  conceptualizations  of  the  boundary  management  process  are  useful. 


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This  broad  view  of  boundary  activity  is  much  closer  to  that 
frequently  taken  by  organization  theorists.   Those  drawing  on  a 
resource  dependence  paradigm,  open  systems  theory,  or  a  strategic 
management  approach  view  the  organization  not  simply  as  an  adaptor  to 
environmental  contingencies,  but  also  as  an  entity  that  can  mold, 
enact,  and  manage  its  dependence  on  outsiders  (Adams,  1976;  Astley  & 
Van  de  Ven,  1983;  Pennings,  1980;  Pfeffer,  1972;  Van  de  Ven  &  Walker, 
1984)  .  For  exairple,  a  more  inclusive  description  of  organizational 
boundary  activities  was  proposed  by  Adams  (1980) .  He  outlined  five 
classes  of  activities:  acquisition  of  organizational  inputs,  the 
disposal  of  outputs,  searching  for  and  collecting  information,  repre- 
senting the  organization  to  outsiders,  and  buffering  it  from  external 
threat  and  pressure.  Such  a  typology  seems  to  reflect  many  of  the 
boundary  activities  in  which  a  new  product  team  must  engage  during  the 
product  development  process. 

The  first  purpose  of  this  study  is  to  describe  the  range  of 
boundary  activities  i".  v/nich  nsw  product  team  members  engage.  Our 
genei-al  hypothesis  is  that  due  to  the  conplexities  of  the  new  product 
team's  dependence  on  other  parts  of  the  organization,  team  members  will 
display  complex  patterns  of  boundary  activity  similar  to  those  of 
organizations . 
Factors  Associated  With  Boundary  Activities 

The  second  purpose  of  this  study  is  to  investigate  the  factors 
which  influence  the  type  and  frequency  of  team  member  boundary 
activities.  Specifically,  we  hypothesize  that  the  types  and  frequency 
of  boundary  activities  in  which  individual  team  members  engage  will  be 


influenced  by  both  the  nature  of  the  task  environment  and  the  charac- 
teristics of  the  individual. 

Task  Environinent  Characteristics.  Although  a  great  deal  of 
research  has  chronicled  the  relationship  betv;een  environmental  condi- 
tions and  internal  team  structure  (c.f.  Gresov,  1988;  Tushman  &  Nadler, 
1978;  Tushman,  1977,  1979),  little  work  has  examined  the  relationship 
between  the  environment  of  a  task  group  and  its  external  initiatives 
(see  Allen,  1984  as  an  exception) .   Further,  much  of  this  work  has  used 
environmental  uncertainty  has  the  sole  measure  of  the  conditions  a 
group  faces  (Gresov,  1988) .  However,  reviews  of  the  research  and 
development  and  organizational  literatures  indicate  that  more  specific 
descriptions  of  environments  are  both  possible  and  desirable.  For 
example,  uncertainty  can  be  broken  down  into  technical,  organiza- 
tional, and  market  uncertainty  (Abemathy  &  Clark,  1985;  Argote,  1982; 
Galbraith,  1982).  At  the  organizational  level,  Aldrich  (1979)  des- 
cribes six  characteristics  of  an  environment:  rich  or  lean,  homo- 
geneous or  heterogeneous,  stable  or  unstable,  concentrated  or  dis- 
persed, consensus  or  dissension,  and  the  extent  of  turbulence. 

These  more  detailed  descriptions  of  environments  are  useful  in 
understanding  tlie  circumstances  in  which  highly  interdependent  teams 
must  operate.  Partially  based  on  them,  we  propose  a  set  of  charac- 
teristics that  can  influence  the  particular  boundary  activities  in 
which  product  team  members  engage. 

The  first  task  environment  characteristic  is  the  extent  to  v^ich 
the  new  product  is  revolutionary  as  opposed  to  an  incremental  improve- 
ment over  an  existing  product.  This  variable  corresponds  to  technical 


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uncertainty,  or  lack  of  infonnation  about  how  to  do  the  task  (Crawford, 
1974;  Daft  &  Macintosh,  1981;  Houston  &  Holmes,  1974).   As  Dewar  and 
EXitton  (1986)  have  observed,  different  models  may  be  necessary  to 
explain  radical  and  incremental  innovations.  When  the  product  is 
revolutionary,  the  team  therefore  may  need  to  go  outside  its  borders 
more  frequently  to  get  technical  or  conceptual  assistance  than  if  the 
product  uses  a  known  technology  (Brown  &  Utterback,  1985) . 

The  second  variable  which  may  influence  the  boundary  activities  of 
the  team  members  is  the  experience  of  the  organization  in  developing 
similar  products  or  using  similar  technologies.  Low  levels  of  ex- 
perience correspond  to  organizational  uncertainty,  or  lack  of  standard 
operating  procedures  and  information  about  cause-effect  relationships 
(Galbraith,  1977;  Thonpson  &  Tuden,  1959).  When  standard  operating 
procedures  do  not  exist,  informal  boundary  activity  may  be  necessary  to 
aid  coordination. 

The  third  environmental  characteristic  that  may  influence  external 
activity  is  the  e.±ent  of  competition  the  new  p-^oduct  v/ill  face.  High 
levels  of  conpetition  may  reduce  the  predictability  of  others  in  the 
environment  and  increase  uncertainty  (Abemathy  &  Clark,  1985;  EXincan, 
1972;  Leblebici  &  Salancik,  1981) ,  thereby  prompting  team  members  to 
broaden  their  attempts  to  collect  information  from  others. 

The  fourth  environmental  characteristic  is  the  stability  of  the 
market  for  the  new  product.  This  is  similar  to  the  rate  of  environmen- 
tal change  (Aldrich  (1979) .  Products  developed  for  stable  markets  may 
have  larger  lives  and  more  predictable  development  cycles  than  those 
developed  for  changing  markets.  High  rates  of  change  may  also  focus 


6 

the  group  on  external  scanning  for  information  that  v;ill  keep  it 
updated  on  current  trends. 

A  final  environmental  variable  is  the  availability  of  resources  to 
the  team.   Personnel,  budget,  and  equipment  allocations  detennine 
v^ether  the  team  faces  a  rich  or  lean  environment  (Aldrich,  1979) .  A 
rich  environment,  where  resources  are  both  abundant  and  easily 
available  may  reduce  the  necessity  of  certain  boundary  activities. 
Similarly,  lean  environments  may  prompt  the  team  to  search  for 
resources  throughout  the  organization. 

In  addition  to  the  specific  characteristics  of  the  task  environ- 
ment, we  propose  a  final  factor  which  may  influence  the  pattern  of 
individual  boundary  activity.  Ancona  and  Caldwell  (1987)  argue  that 
the  demands  of  the  product  development  task  change  from:  1)  exploring 
technical  ideas  and  product  potential;  2)  to  exploiting  the  information 
and  resources  the  team  has  garnered  and  moving  to  efficient  development 
of  the  product;  3)  to  exporting  the  expertise  and  enthusiasm  for  the 
product  to  others.  The  stage  of  the  product  development  process  may 
pose  a  specific  set  of  task  demands  that  may  shift  team  member's 
external  communications.  Such  changes  may  translate  into  shifting 
boundary  activities. 

Individual  Characteristics.  We  propose  that  two  general  classes 
of  individual  variables  will  be  related  to  boundary  activities.  The 
first  of  these  is  the  individual's  role  in  the  organization.  Following 
Allen  (1970) ,  we  propose  that  formal  team  leaders  will  be  most  likely 
to  engage  in  boundary  management  activities.  This  will  be  particularly 
pronounced  for  those  activities  that  involve  dealing  with  upper 


7 
management . 

The  second  class  of  individual  variables  relates  to  the  product 
team  member's  experience.  Taylor  (1972)  observes  that  individuals 
become  communication  gatekeepers  only  when  they  have  sufficient 
ejqserience  in  the  organization  and  when  they  are  engaged  in  technical 
work.  We  propose  a  similar  hypothesis,  namely  that  individuals  with 
longer  experience  in  the  company  will  display  higher  levels  of  boundary 
activity  since  these  individuals  have  had  more  of  an  opportunity  to 
develop  contacts  and  to  understand  the  corporate  culture. 

In  addition  to  the  years  of  experience,  we  propose  that  boundary 
activity  will  be  related  to  the  nature  of  experiences  an  individual  has 
had  over  his  or  her  career.  Substantial  research  suggests  that 
similarity  in  background  or  personal  characteristics  influences 
attraction  and  frequency  of  communication  (Good  &  Nelson,  1971; 
Newcomb,  1961) .  This  suggests  that  individuals  will  more  frequently 
interact  with  people  from  the  same  functional  area.   Based  on  this 
reasoning,  it  is  li>:ely  that  individuals  who  have  had  experience  in 
particular  functional  areas  will  be  more  likely  to  engage  in  boundary 
activities  than  individuals  ^o   do  not  have  the  same  experiences. 

A  final  variable  that  may  influence  the  boundary  activities  of  an 
individual  is  the  extent  to  which  that  person  is  integrated  into  the 
project.  Since  individuals  are  frequently  assigned  to  more  than  one 
project  or  have  multiple  responsibilities,  there  is  variability  in  the 
amount  of  time  people  spend  on  a  project.  Some  people  are  assigned 
nearly  full  time  to  the  project;  others  have  more  diverse  respon- 
sibilities. The  amount  of  time  the  individual  spends  on  the  project 


8 

may  influence  the  type  of  boundary  activities  in  v^ich  the  individual 

engages. 

Summary  and  Hypotheses 

In  summary,  this  research  has  two  goals.  First,  we  seek  to 
identify  the  range  of  boundary  activities  that  new  product  team  members 
use  to  manage  their  dependence  on  those  outside  the  team's  boundaries. 
Second,  we  hypothesize  that  particular  task  environment  and  individual 
variables  will  be  related  to  the  frequency  in  v^ich  product  development 
team  members  engage  in  the  pattern  of  boundary  activities.  More 
specifically,  we  hypothesize  that  when  the  new  product  is  revolution- 
ary, new  to  the  company,  and  in  a  conpetitive  and  highly  unstable 
market,  individuals  will  engage  in  a  different  pattern  of  boundary 
activities  than  wtien  the  product  and  its  market  are  more  stable  and 
predictable.   In  addition,  the  stage  of  the  product  development  process 
may  influence  the  frequency  of  boundary  activity.  Similarly,  we 
hypothesize  that  individuals  v;ho  are  team  leaders,  have  served  on  many 
teams,  have  substantial  experience  in  the  company,  spend  a  large 
percentage  of  time  on  the  project,  and  have  experience  in  functions 
other  than  engineering  and  research  will  be  more  active  in  boundary 
management  than  individuals  who  do  not  have  these  characteristics. 

Methods 

Two  separate  data  collections  were  undertaken.  The  first  in- 
cluded: 1)  set  of  interviews  with  38  new  product  managers;  and  2)  logs 
kept  by  all  members  of  two  teams  for  a  two-week  period.  The  purpose  of 


m 


9 

these  interviews  and  logs  was  to  derive  a  reasonably  conplete  set  of 
boundary  activities  and  to  provide  an  initial  test  of  some  of  the 
measures  used  in  the  second  study.  The  second  study  involved  the 
leaders  and  members  of  45  new  product  teams.   In  the  second  study 
questionnaires  and  interviews  were  used  to  investigate  the  structure  of 
boundary  activities  and  the  factors  that  contribute  to  them.   In 
addition,  all  team  leaders  were  interviewed  as  were  senior  managers  in 
each  conpany  who  provided  data  on  product  characteristics. 
Study  1 

Subjects.  Thirty-eight  leaders  of  new  product  teams  in  seven 
corporations  in  the  conputer,  integrated  circuit,  and  analytic  in- 
strumentation industries  were  interviewed.   Interviews  ranged  between 
one  and  eight  hours,  with  an  average  duration  of  approximately  three 
hours.  All  of  taie  leaders  had  at  least  three  years  experience  in  high- 
technology  organizations  and  all  but  seven  had  managed  new  product 
teams  prior  to  the  one  they  were  currently  describing.  Six  of  the 
leaders  were  higher  level  managers  vdio  were  responsible  for  multiple 
teams. 

Identification  of  Boundary  Activities.  During  part  of  the 
interview,  each  leader  was  asked  to  describe  the  interactions  that  he 
or  his  team  members  had  with  other  individuals  outside  the  new  product 
team.  We  asked  leaders  to  be  as  inclusive  as  possible  in  their 
descriptions  and  to  include  all  forms  of  communication  including 
meetings,  one-on-one  discussions,  telej±ione  calls,  and  conputer 
messages.  Also  noted  were  those  actions  aimed  at  controlling  the 
team's  boundary,  such  as  avoiding  meeting  with  others  until  a  par- 


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ticular  decision  had  been  made  or  preventing  outsiders  from  meeting 
with  the  team. 

In  addition,  two  teams  of  seven  and  eight  members  respectively, 
were  asked  to  keep  logs  of  all  of  their  external  activities  over  a  two- 
week  period.  The  logs  required  members  to  record  all  communications 
with  outsiders  including  the  person  with  whom  they  communicated,  the 
hierarchical  level  of  that  person,  his  or  her  functional  group,  and  the 
purpose  of  the  communication. 

Based  on  an  inspection  of  the  interview  transcripts  and  the  logs, 
a  set  of  24  boundary  activities  was  identified  for  use  in  Study  2. 
These  items  included  actions  such  as  persuading  others  to  support  the 
team,  attempt ing  to  acquire  resources  for  the  team,  bringing  technical 
and  political  information  into  the  group,  and  keeping  progress  of  the 
group  secret. 
Study  2 

Subjects.  Questionnaires  were  distributed  to  new  product  team 
members  and  leaders  of  forty-five  teams  in  five  corporations  in  the 
conputer,  analytic  instrumentation,  and  photographic  industries.  Of 
the  450  questionnaires  distributed,  a  total  of  409  questionnaires  were 
returned,  yielding  a  response  rate  of  approximately  89  percent. 
Response  rates  were  approximately  equal  across  the  set  of  conpanies  and 
the  final  total  of  respondents  per  company  varied  from  39  to  129.  In 
addition  to  the  data  collected  by  questionnaire,  each  team  leader  was 
interviewed  for  approximately  one  hour.  The  average  age  of  the  sanple 
was  38.6  years,  88  percent  were  male  and  75  percent  possessed  at  least 
a  four-year  college  degree.  Approximately  77  percent  of  the  sample 


11 

were  from  the  engineering  or  R  &  D  function;  the  remaining  were  spread 
across  manufacturing,  marketing,  sales  and  service,  and  product 
management. 

Measurement  of  the  Boundary  Activities.  The  24  boundary  ac- 
tivities identified  in  Study  1  were  converted  to  questionnaire  items. 
Respondents  were  asked  to  indicate  on  five-point  Likert  scales  the 
extent  to  v^^ich  they  felt  each  of  the  items  was  part  their  respon- 
sibility in  dealing  with  people  outside  the  team. 

In  addition  to  reports  of  boundary  responsibilities,  data  were 
collected  on  individual  communication  with  outsiders  in  other  function- 
al and  hierarchical  areas  in  order  to  provide  some  validation  of  the 
boundary  activity  scores.   Individuals  indicated  the  extent  to  v^iich 
their  time  on  the  project  was  spent  working  alone  (x  =  48.25  percent; 
s.d.  =  28.37),  working  with  others  on  the  team  (x  =  37.71  percent;  s.d. 
=  26.47) .  and  working  on  the  product  with  individuals  not  assigned  to 
the  team  (x  =  13.90  percent;  s.d.  =  12.02) .  A  second  set  of  communica- 
tion measures  asked  the  respondent  to  indicate  on  an  anchored  6-point 
scale  (1  =  Not  at  all;  6  =  Several  times  per  day)  the  frequency  with 
which  the  person  communicated  with  people  in  other  functional  areas 
including:  manufacturing  (x  =  3.01;  s.d.  =  1.76),  marketing  (x  =  2.08; 
s.d.  =  1.39),  sales  and  service  (x  =  1.89;  s.d.  =  1.20),  R  &  D  (x  = 
2.27;  s.d.  =  1.35),  the  top  management  of  R&D  (x  =  2.07;  s.d.  =  1.28), 
top  division  management  (x  =  1.59;  s.d.  =  1.11)  and  top  corporate 
management  (x  =  1.30;  s.d.  =  .75). 

Measurement  of  Task  Environment  Characteristics.   During  the 
interviews  with  the  new  product  team  leaders,  a  number  of  structured 


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questions  were  asked  regarding  the  task  environment  of  the  new  product 
team.  Team  leaders  were  asked  to  indicate  on  a  five-point  Likert  scale 
the  following:  1)  the  extent  to  v^ich  the  product  used  a  revolutionary 
technology  (1  =  Same  as  other  products,  5  =  revolutionary;  x  =  3.16, 
s.d.  =  1.10);  2)  the  experience  of  the  company  in  developing  similar 
products  (1  =  Never  done  it  before,  5  =  Do  it  all  the  time;  reversed 
scoring,  x  =  3.09,  s.d.  =  1.47) ;  3)  the  amount  of  external  competition 
the  product  faces  (1  =  None,  5  =  A  great  deal;  x  =  3.99,  s.d.  =  .93) ; 
4)  the  rate  at  which  the  targeted  market  is  changing  (1  =  Not  at  all,  5 
=  very  rapidly;  x  =  3.21,  s.d.  =  .84)  ;  5)  the  availability  of  person- 
nel, equipment,  and  funds  (three  items  are  averaged  to  determine  the 
richness  of  the  environment;  1  =  rarely  available,  5  =  no  problem 
securing;  reversed  scored,  x  =  2.17,  s.d.  =  .37). 

In  addition,  the  team  leader  indicated  the  stage  of  the  product 
development  process.  Teams  were  categorized  as  being  in  the  creation, 
development,  or  diffusion  stage  of  product  development  (Ancona  & 
Caldwell,  1987) .  Teams  in  the  creation  phase  had  not  yet  developed 
complete  product  specifications.  Teams  in  the  developmient  stage  were 
completing  the  technical  tasks  necessary  to  produce  a  working  proto- 
type. Teams  in  the  diffusion  stage  had  met  project  specifications  and 
were  in  the  process  of  transferring  the  prototype  to  those  v^o  would 
manufacture  and  distribute  it. 

Measurement  of  the  Individual  Correlates  of  Boundary  Activity. 
The  questionnaire  also  contained  items  regarding  individual  background 
and  experience.  Three  of  these  were  the  number  of  new  product  teams  on 
which  the  respondent  had  previously  served  (x  =  9.38,  s.d.  =  16.30), 


13 
the  years  that  the  respondent  had  been  with  the  coirpany  (x  =  11.23; 
s.d.  =  9.16)  ,  and  the  percentage  of  their  work  time  v^hich  was  devoted 
to  the  project  (x  =  59.62  percent;  s.d.  =  37.98).   In  addition, 
respondents  indicated  whether  or  not  they  had  experience  in  R  &  D, 
marketing,  and  manufacturing  (0  =  no,  1  =  yes) . 

Results 

Patterns  of  Boundaty  Activities 

The  first  general  research  question  addressed  the  existence  of 
multiple  independent  dimensions  of  boundary  activity  to  deal  with  the 
coirplex  set  of  dependencies  that  the  new  product  teams  faces  with  other 
parts  of  the  organization.  To  investigate  this,  a  principal  conponent 
analysis  with  a  varimax  rotation  was  performed  on  the  24  boi.'ndary 
activity  items  included  in  the  questionnaire.  Table  1  summarizes  this 
analysis  and  shows  the  item  loadings  greater  than  .35. 

Insert  Table  1  About  Here 

Although  some  cross-loading  exists,  four  interpretable  factors 
emerged.  The  first  factor  is  defined  by  12  items  with  loadings  greater 
than  .50.  The  items  appear  to  reflect  primarily  buffering  and  repre- 
sentational activities.  Exanples  of  buffering  included  such  things  as 
absorbing  pressures  and  protecting  the  team.  Representational  ac- 
tivities included  persuading  others  to  support  the  team,  keeping  higher 
levels  informed  of  team  activities,  informing  the  team  of  coirpany 


14 

strategy  and  of  potential  threats  or  opposition  the  team  roay  face,  and 
lobbying  for  resoitfces.  Since  these  activities  contain  both  protective 
and  persuasive  goals,  we  label  the  set  of  behaviors  identified  by  this 
factor  as  ambassador  activities. 

Five  items  with  loadings  greater  than  .50  primarily  define  the 
second  factor.  These  items  represent  interactions  aimed  at  coordinat- 
ing technical  or  design  issues.  We  term  this  activity  set,  task 
coordinator.   Examples  of  behaviors  in  this  set  include  discussing 
design  problems  with  others,  obtaining  feedback  on  the  product  design, 
coordinating  and  negotiating  with  outsiders. 

The  third  factor  is  made  up  of  four  items  with  loadings  greater 
than  .50.  This  factor  is  labelled  scout  because  it  describes  ac- 
tivities that  involve  general  scanning  for  ideas  and  information  about 
the  competition,  the  market,  or  the  technology'.  While  task  coordinator 
activities  appear  to  be  aimed  at  handling  specific  technical  and 
coordination  issues,  scout  activities  appear  to  incorporate  more 
general  scanning. 

The  fourth  set  of  activities  are  guard  activities.  The  three 
items  that  comprise  this  factor  all  involve  controlling  the  team's 
release  of  infonnation.  Activities  here  are  aimed  at  keeping  informa- 
tion within  the  team's  boundaries  in  orTder  to  protect  the  team  or 
present  a  specific  image  of  the  team  to  outsiders. 
Further  analysis  of  Boundary  Activity 

To  ensure  orthogonality  among  the  four  boundary  dimensions,  factor 
scores  were  computed  and  used  in  subsequent  analyses.  As  a  partial 
test  of  the  validity  of  the  structure  of  the  boundary  activities,  and 


15 
to  learn  more  about  the  destinations  of  the  four  types  of  boundary 
activity,  correlations  betu'een  the  individual  boundary  factor  scores 
and  the  individual  communication  variables  were  calculated.  Although 
not  shown  as  a  table,  the  ambassador  factor  scores  are  correlated  with 
frequency  of  communication  with  manufacturing  (r  =  .12,  p  <  .05), 
marketing  (r  =  .25,  p  <  .001),  top  R&D  management  (r  =  .15,  p  <  .01), 
top  division  management  (r  =  .20,  p  <  .001) ,  and  top  corporate 
management  (r  =  .15,  p  <  .01).   In  contrast,  the  task  coordinator 
factor  was  associated  with  higher  levels  of  communication  with 
manufacturing  (r  =  .34,  p  <  .001) ,  and  R&D  below  the  top  management 
level  (r  =  .10,  p  <  .05) .  Individuals  with  high  scores  on  the  scout 
factor  engage  in  more  frequent  communication  with  R&D  below  the  top 
management  level  (r  =  .10,  p  <  .05),  marketing  (r  =  .29,  p  <  .001)  and 
sales  and  service  (r  =  .16,  p  <  .01) .  The  guard  factor  was  unrelated 
to  frequency  of  communication. 

The  relationships  noted  above  lend  support  for  the  validity  of 
differentiated  boundary  activity  sets.  Individuals  who  believe 
themselves  responsible  for  protecting  the  team  and  representing  the 
team  to  outsiders  have  the  broadest  set  of  communication  links.  Those 
individuals  reporting  responsibility  for  technical  problem  solving  and 
coordination  interact  with  lateral  groups  particularly  manufacturing 
and  R&D,  while  those  who  are  scanning  for  competitive,  market,  and 
technical  ideas,  have  more  frequent  interaction  with  R&D,  marketing 
and  sales. 

Not  only  do  identified  boundary  factors  relate  to  the  type  and 
destination  of  their  communications,  they  also  relate  to  how  much  time 


16 
individuals  spend  working  alone  on  the  project,  working  with  other  team 
members  on  the  project,  and  working  with  non-members  on  the  project. 
Ambassador  factor  scores  are  negatively  related  to  percentage  of  time 
spent  alone  (r  =  -.18,  p  <  .001),  but  positively  related  to  time  spent 
with  team  members  (r  -   .11,  p  <  .05),  and  outsiders  (r  =  .14,  p  <  .01). 
Similarly,  task  coordinator  factor  scores  are  negatively  correlated 
with  time  spent  alone  (r  =  -.13,  p  <  .01) ,  but  positively  correlated 
with  time  spent  with  outsiders  (r  =  .29.  p  <  .001)  .   Scout  and  cfuard 
factor  scores  are  unrelated  the  amount  of  time  team  members  spend 
working  with  others. 
Factors  Influencing  Boundary  Activity 

The  second  goal  of  this  study  was  to  identify  the  environmental 
and  individual  variables  that  influence  the  extent  to  which  team 
members  engage  in  boundary  activities.  To  identify  the  relationships 
between  boundary  activities  and  the  other  variables,  separate  regres- 
sions were  computed  for  each  of  the  four,  independent  boundary  activity 
factors.  For  each  factor,  a  hierarchical  regression  model  was 
developed.  First,  dummy  variables  representing  the  companies  in  the 
sample  were  entered  into  the  equation  to  control  for  company  differen- 
ces. Second,  the  five  task  environment  variables  were  entered:  degree 
to  v^ich  product  is  revolutionary  (REVOL) ;  experience  of  the  conpany 
(EXPER) ;  degree  of  competition  ((XMPET) ;  availability  of  resources 
(RESAVL) ;  and  market  stability  (MSTABIL) .  Third,  dummy  variables 
representing  the  phase  of  the  product  development  process  were  entered. 
Finally,  the  individual  variables  were  entered.  These  were:  whether  or 
not  the  individual  was  a  team  leader  (LEADER) ;  the  number  of  teams  on 


17 
which  the  individual  has  served  (NUMTEAMS) ;  years  of  experience  in  the 
ccmpany  (YEARSCD) ;  the  percentage  of  time  the  individual  spends  working 
on  the  project  (PCTPRQJ)  and  v^ether  or  not  the  individual  has 
experience  in  R  &  D  (EXRD)  ;  manufacturing  (EXMFX3)  ;  or  marketing 
(EXMKT)  .  Following  the  entry  of  each  set  of  variables,  the  incremental 
increase  in  the  variance  explained  was  examined. 

Table  2  shows  the  correlation  matrix  for  all  variables  in  the 
regressions  and  Table  3  shows  the  regression  results.  As  shown,  the 
conplete  set  of  variables  explain  significant  amounts  of  the  variance 
in  all  four  of  the  boundary  activity  factors.   Looking  at  each  set  of 
variables,  a  number  of  findings  are  worthy  of  note. 

Insert  Tables  2  and  3  About  Here 

First,  the  dummy  variables  indexing  the  company  explained  sig- 
nificant variance  on  both  the  ambassador  and  guard  factor.  This 
suggests  that  particular  corporate  environments  may  encourage  certain 
external  activities  more  than  others. 

Second,  task  environment  variables  do  not  seem  to  have  a  large 
irtpact  on  boundairy  activity.  The  exception  here  is  with  regard  to 
resource  availability.  In  lean  environments  (low  resource  avail- 
ability) individuals  display  higher  levels  of  scout  activity  and  lower 
levels  of  cfuard  activity,  than  in  rich  environments. 

Third,  the  phase  of  the  project  is  related  to  the  level  of 
activity  on  the  ambassador  dimension.  Although  not  shown  here,  an 
inspection  of  ambassador  activity  across  the  three  stages  of  the 


18 

product  development  process  suggests  that  such  activity  is  highest 
during  the  creation  and  diffusion  stage,  and  lower  during  the  develop- 
ment stage. 

Finally,  the  individual  variables  have  a  significant  inpact  on  all 
four  factors.  Whether  or  not  an  individual  is  a  team  leader  is 
strongly  related  the  extent  to  which  the  individual  assumes  respon- 
sibility for  both  ambassador  and  task  coordinator  activities.  Longer 
tenure  in  the  organization  is  related  to  reported  responsibility  for 
task  coordinator  activities,  while  the  percentage  of  work  time  com- 
mitted to  the  team  is  positively  related  to  responsibility  for  guard 
activities.  Finally,  there  appears  to  be  support  for  the  hypothesis 
that  similarity  in  background  and  experience  is  related  to  frequency 
and  type  of  communication.  Experience  in  manufacturing  suggests  high 
levels  of  task  coordinator  but  low  level  of  scout  activity  while  ex- 
perience in  marketing  suggests  high  levels  of  ambassador  and  scout 
activity,  but  low  levels  of  task  coordinator  activity. 

Discussion 

Despite  the  increasing  emphasis  on  the  use  of  teams  in  facilitat- 
ing product  development,  there  is  little  concrete  evidence  regarding 
how  particular  team  activities  or  structures  can  enhance  the  product 
development  process.  In  this  study  we  have  concentrated  on  identifying 
the  pattern  of  cross-boundary  activities  a  team  uses  to  manage  its 
dependence  on  other  parts  of  the  organization.  Our  goal  was  to  move 
beyond  examining  the  frequency  of  external  communication  in  order  to 


19 
describe  the  varied  types  of  cornmunication  needed  to  handle  complex 
interdependence.  Several  findings  from  this  research  may  be  useful  in 
\jnderstanding  and  inproving  new  product  team  performance. 

First,  the  data  suggest  that  the  boundary  activities  of  new 
product  teams  are  multi-faceted  and  complex.   Boundary  spanning  goes 
beyond  the  importation  of  technical  information  and  includes  handling  a 
broad  range  of  inputs  and  outputs,  as  well  as  functions  such  as 
protecting  the  team  and  representing  the  team  to  others.  This  model  of 
boundary  spanning  is  much  closer  to  that  taken  by  organization  theor- 
ists than  group  researchers.  More  specifically,  teams  attempt  not  only 
to  exchange  technical  information  but  also  to  model  the  environment  of 
the  organization,  facilitate  coordination  with  other  organizational 
units,  and  to  mold  the  views,  expectations  and  behaviors  of  those  who 
control  critical  resources. 

From  the  resource  dependence  perspective,  the  most  critical 
determinant  of  an  entity's  viability  is  the  ability  to  obtain  critical 
resources  (Astley  &  Van  de  Ven,  1983;  Pfeffer  &  Salancik,  1978).  Our 
expanded  view  of  boundary  spanning  suggests  that  technical  know-how  is 
only  one  critical  resource  for  new  product  teams.  In  addition  to 
existing  in  a  technological  environment,  teams  belong  to  an  organiza- 
tional environment  in  which  there  is  competition  for  time,  money, 
personnel,  influence,  support  and  information.  Team  members  in  this 
study  worked  to  obtain  these  organizational  resources,  v^ile  simul- 
taneously protecting  other  team  members  who  could  then  concentrate  on 
the  core  technical  work.  Clearly,  the  management  of  this  broader 
organizational  dependence  needs  to  be  added  to  that  of  technological 


20 

dependence  in  order  to  understand  the  requirements  of  boundary  span- 
ning. In  fact,  as  'global  corpetition  grov/s  and  authority  within  the 
organization  gets  pushed  down  the  hierarchy,  functional  groups  must 
work  more  closely  together  (Galbraith,  1982;  Malone,  1987).  This  means 
that  the  management  of  this  organizational  dependence  may  well  become 
increasingly  inportant. 

Second,  the  data  indicate  that  different  types  of  boundary 
activities  are  needed  for  different  types  of  dependence.  Vertical  or 
hierarchical  dependence  (Gresov,  1988) ,  whereby  top  levels  of  the 
organization  distribute  personnel,  funding,  equipment,  legitimacy,  and 
priority,  is  handled  through  ambassador  activity.  Ambassador  activity 
appears  to  be  somewhat  political;  identifying  threat  and  opposition  in 
top  levels  of  the  organization  and  working  to  build  support  from  these 
powerful  outsiders.  Horizontal  or  lateral  dependence,  whereby  other 
functions  have  critical  information,  expertise,  and  creative  ideas,  is 
harnessed  through  task  coordinator  and  scout  activity.  Task  coor- 
dinator activity  is  the  most  time-consuming,  requiring  the  largest 
aiTKDunt  of  time  devoted  to  external,  as  opposed  to  internal,  activities. 
Coordination  and  synchronization  with  other  technical  groups  appears  to 
require  more  focused  communication  than  the  more  general  scanning  done 
through  scout  activities.  Scout  activities  aimed  at  obtaining  competi- 
tive, market,  and  technical  ideas  illustrate  yet  a  third  set  of 
behaviors,  aimed  at  a  different  part  of  the  organization  (those  with 
access  to  information  about  external  competitive  trends) ,  to  handle  a 
second  form  of  lateral  dependence.  In  contrast,  guard  activities 
represent  a  means  of  decreasing,  rather  than  meeting,  dependence 


21 
through  the  control  of  information  flow  out  of  the  group. 

Third,  the  findings  indicate  that  team  members  do  not  vary  their 
boundary  activities  based  on  characteristics  of  the  task  environment. 
One  clear  exception  to  this  is  the  response  to  resource  scarcity — yet 
even  here  teams  respond  through  an  increased  openness  in  boundary 
permeability  (scouting  allows  for  information  to  flow  into  the  group 
while  low  guard  activity  means  that  information  also  flows  out  of  the 
group)  and  not  the  predicted  ambassador  activity  aimed  at  obtaining 
resources.   Future  research  will  need  to  determine  whether  this  lack  of 
adaptation  of  boundary  activity  to  environmental  conditions  is  detri- 
mental to  team  performance,  or  whether  the  teams  in  this  sanple  are 
already  exhibiting  high  levels  of  boundary  activity  to  deal  with 
organizational  dependence  and  thus  task  environment  demands  are  also 
met. 

Finally,  the  data  suggest  that  individual  characteristics  are 
inportant  in  understanding  who  assumes  boundary  activity.  Not  surpris- 
ingly, leaders  display  higher  levels  of  some  inportant  activities  — 
ambassador  and  task  coordinator  —  than  non-leaders.   In  addition, 
functional  experiences  facilitate  particular  boundary  activities  and 
inhibit  others.  Those  with  current  or  previous  experience  in  marketing 
are  prone  to  take  on  scout  activities,  scanning  and  obtaining  ideas 
from  sales,  marketing,  and  lower  levels  of  R  &  D,  yet  shy  away  from 
task  coordinator  activities  with  R&D  and  manufacturing.  The  opposite 
holds  for  those  with  current  or  previous  experience  in  manufacturing 
and  to  some  extent  R&D.  Clearly,  experience,  knowledge,  and  comfort 
with  the  language,  values,  and  priorities  of  another  function  or 


22 

"thought-world"  (Dougherty,  1987)  facilitates  communication  with  those 
similar  others.  These  findings  suggest  that  training  for  new  product 
team  members  and  leaders  should  focus  on  gaining  cross-functional 
experience  and  obtaining  skills  in  a  wide  range  of  external  boundary 
activities. 

In  short,  we  have  identified  a  set  of  activities  beyond  tech- 
nological boundary  spanning:  ambassador,  task  coordinator,  scout,  and 
guard  activities.  This  broad  range  of  activities  suggests  that  new 
product  team  members,  and  members  of  other  externally-dependent  groups, 
must  learn  to  manage  a  complex  set  of  organizational,  as  well  as, 
technological  dependencies.  We  look  to  future  researchers  to  test  the 
validity  and  generalizability  of  our  findings,  and  the  relationship 
between  boundary  spanning  and  key  outcome  variables  such  as  perfor- 
mance, development,  and  innovation. 


23 

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26 


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27 

TABLE   1 

VARIMAX  FACTOR  LOADINGS   FOR  BOUTroARY  MAJJAGEMQIT  DIMENSIONS 

n=409 


Absorb  outside  pressures  for  the  team  so  it 

can  work  free  of  interference.  .785 

Protect  the  team  from  outside  interference.        .740 

Prevent  outsiders  from  "overloading"  the 

team  with  too  much  information  or  too  many 

requests.  .719 

Persuade  other  individuals  that  the  team's 

activities  are  inportant.  .654 

Scan  the  environment  inside  your  organization 

for  threats  to  the  product  team.  .636  .417 

"Talk  up"  the  team  to  outsiders.  .602 

Persuade  others  to  support  the  team's  decisions    .592      .416 

Acquire  resources  (e.g.  money,  new  members, 

equipment)  for  the  team.  .587      .417 

Report  the  progress  of  the  team  to  a  higher 

organizational  level.  .553      .403 

Find  out  v^ether  others  in  the  company  support 

or  oppose  your  team's  activities.  .551  .449 

Find  out  information  on  your  company's 

strategy  or  political  situation  that  may 

affect  the  project.  .549  .430 

Keep  other  groups  in  the  company  informed 

of  your  team's  activities.  .519      .421 

Resolve  design  problems  with  external  groups.  .776 

Coordinate  activities  with  external  groups.  .660 

Procure  things  which  the  team  needs  from  other 

groups  or  individuals  in  the  company.  .657 

Negotiate  with  others  for  delivery  deadlines.  .618 


28 


Review  product  design  with  outsiders. 

Find  out  what  conpeting  finns  or  groups  are 
doing  on  similar  projects. 

Scan  the  environment,  inside  or  outside  the 
organization  for  marketing  ideas/expertise. 

Collect  technical  information/ideas  from 
individuals  outside  of  the  team. 

Scan  the  environment  inside  or  outside  the 
organization  for  technical  ideas/expertise. 

Keep  news  about  the  team  secret  from  others 
in  the  conpany  until  the  appropriate  time. 

Avoid  releasing  information  to  others  in  the 
company  to  protect  the  team's  image  or 
product  it  is  working  on. 

Control  the  release  of  information  from 
the  team  in  an  effort  to  present  the 
profile  we  want  to  show. 


.515 


.424 


.491 


.404 


.791 


.719 


,645 


.587 


.823 


.817 


.592 


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O            O            O            O            O            ^    *     r-i  rH-XO  O  rH-XrH-*: 
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11  II 

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TABLE  3 

REGRESSION  RESULTS"* 
n=409 


Boundary  Factors 
2  3 


30 


Task 
Ambassador   Coordinator 


Scout 


Guard 


Compriny 

-.20** 

Dummy  1 

-.01 

.04 

.14 

EXimmy  2 

-.16* 

-.12 

-.07 

-.07 

Dummy  3 

.23** 

.00 

.01 

-.04 

Dummy  4 

.03 

.13 

.10 

.12 

AdjustPd  R  Square 
F 

.04 
5.03*** 

.00 
1.31 

.00 
.59 

.02 
2.97 

Task  Eiivironment 

REVOL 

-.02 

.06 

-.02 

.07 

EXJ^KR 

-.06 

-.01 

-.02 

-.06 

CO^PhT 

-.12* 

.06 

.05 

.02 

RESAVL 

.08 

.02 

.13* 

-.22 

MSTABIL 

.05 

.05 

-.04 

-.02 

Adjusted  R  Square 

.05 

.00 

.01 

.05 

F 

3.06** 

.79 

1.40 

2.92 

E-R  Square  Change 

1.46 

.38 

2.04* 

2.82 

Riase 

EXmimy  5 

-.05 

.02 

.01 

-.05 

IXimmy  6 

.19** 

.06 

-.05 

.06 

Adjusted  R  Square 
F 

.06 
3.23*** 

.00 
.81 

.01 
1.19 

.04 
2.43' 

F-R  Square  Change 

3.79* 

.89 

.28 

.29 

Individual 

LEADER 

.43*** 

.20*** 

-.04 

-.10 

NIMIEAMS 

.06 

.02 

-.07 

.04 

YEARSCO 

-.01 
.00 

.12* 
.00 

-.01 
-.03 

.03 

PEi'PRQJ 

.18' 

EXRD 

EXMFG 

EXMKT 

-.08 
-.07 
.14* 

.09 

.22*** 
-.24** 

-.03 
-.21*** 
.25*** 

.01 
.02 

-.01 

Adjusted  R  Square 
F 

.26 
7.86*** 

.10 
3.03*** 

.07 
2.42*** 

.06 
2.35' 

F-R  Square  Change 

13.00*** 

5.95*** 

4.23*** 

2.15' 

+  Entries  are  standardized  regression  coefficients 
*  p<.05   **  p<.01    ***  pK.OOl 


** 


** 


** 


** 


*** 


€>-i<^-&^ 


Date  Due 


'■", 


It 


^ 


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DEC  0  8  mr 


Lib-26-67 


MIT   LIBRARIES   DUPl     1 


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