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This paper deals with the organizing of interactive product development. Developing products in interaction between firms may provide benefits in terms of specialization, increased innovation, and possibilities to perform development activities in parallel. However, the differentiation of product development among a number of firms also implies that various dependencies need to be dealt with across firm boundaries. How dependencies may be dealt with across firms is related to how product development is organized. The purpose of the paper is to explore dependencies and how interactive product development may be organized with regard to these dependencies.

The analytical framework is based on the industrial network approach, and deals with the development of products in terms of adaptation and combination of heterogeneous resources. There are dependencies between resources, that is, they are embedded, implying that no resource can be developed in isolation. The characteristics of and dependencies related to four main categories of resources (products, production facilities, business units and business relationships) provide a basis for analyzing the organizing of interactive product development.

Three in-depth case studies are used to explore the organizing of interactive product development with regard to dependencies. The first two cases are based on the development of the electrical system and the seats for Volvo’s large car platform (P2), performed in interaction with Delphi and Lear respectively. The third case is based on the interaction between Scania and Dayco/DFC Tech for the development of various pipes and hoses for a new truck model.

The analysis is focused on what different dependencies the firms considered and dealt with, and how product development was organized with regard to these dependencies. It is concluded that there is a complex and dynamic pattern of dependencies that reaches far beyond the developed product as well as beyond individual business units. To deal with these dependencies, development may be organized in teams where several business units are represented. This enables interaction between different business units’ resource collections, which is important for resource adaptation as well as for innovation. The delimiting and relating functions of the team boundary are elaborated upon and it is argued that also teams may be regarded as actors. It is also concluded that a modular product structure may entail a modular organization with regard to the teams, though, interaction between business units and teams is needed. A strong connection between the technical structure and the organizational structure is identified and it is concluded that policies regarding the technical structure (e.g. concerning “carry-over”) cannot be separated from the management of the organizational structure (e.g. the supplier structure). The organizing of product development is in itself a complex and dynamic task that needs to be subject to interaction between business units.

As a company that has continuously achieved business innovation, Apple in the United States has successfully applied strategic knowledge creation to produce a series of products that integrate various digital devices as well as diverse contents and applications, such as the iPod, iPhone, and iPad, based on a corporate vision of a digital hub concept. At the same time, the redefining of corporate boundaries that expanded Apple’s business in a horizontal direction from the Macintosh PC business to the delivery of music, smartphones, and tablets is also an indication of the evolution of a corporate vision involving Apple’s strategic transformation. This chapter presents the strategic and creative processes that enabled practitioners, including the late Steve Jobs, to demonstrate “strategic innovation capability” by “holistic leadership” at every level of management at Apple and successfully achieve a business ecosystem strategy through “creative collaboration” across diverse boundaries within and outside the company.

We propose team-based organizing as an alternative to more traditional forms of hierarchy-based organizing in global firms.

Advancements in the study of global teams, leadership, process, and outcomes were organized into four themes: (1) openness toward linguistic and value diversity as enhancing team creativity and performance, (2) knowledge sharing in team-based organizations, (3) the significance of social capital for global team leader role success, and (4) shared leadership, satisfaction, and performance links in global virtual teams.

We identify questions at three levels for bringing research on team-based organizing in global organizations forward. At the within-team individual level, we discuss the criticality of process and leadership in teams. At the between-teams group level, we draw attention to that global teams also need to focus on relationships and interactions with other teams within the same global firm, for example, when sharing knowledge. With respect to the across-teams organizational level, we highlight how bringing people together in global teams from different organizational units and cultures creates the potential for experiential individual and team-based learning, while making the firm more flexible and adaptable.

The potential of the relatively underexplored idea of global team-based firms as an alternative to hierarchy open up questions for empirical research, and further theorizing about the global firm.

Practitioners can learn about organizational, team, and individual challenges and benefits of global team-based organizing.

A century-old dominant organizational form is challenged when moving away from hierarchy- and hybrid-based forms of organizing toward team-based global organizing of work.

In this chapter we develop a conceptual model describing how global teams do more than accomplish discrete tasks, and create “spillover coordination” effects by influencing the amount of work-related direct contact among team members outside the task boundaries of the team. We theorize that spillover coordination is the result of relational and cognitive social capital developed through team interaction. We also propose that the design of the team and the context in which it operates influence the degree to which social capital develops.

We develop a conceptual model including propositions that can be tested empirically. We suggest avenues for future research.

Our model proposes that teams are a more powerful cross-border integration mechanism than originally thought in existing literature in international management and organizational behavior, since they affect social capital that can benefit the broader MNE beyond scope of the task and after the team disbands. Our approach suggests that MNE managers should be mindful of global team spillover effects and intentional in the way they design global teams if those benefits are to be achieved.

Most research on global teams, and teams in general, does not look past the task and time boundary of the team. We expand the view of team effectiveness to encompass those dimensions.

Global virtual teams (GVTs) – composed of members in two or more countries who work together primarily using information and communication technologies – are increasingly prevalent in organizations today. There has been a burgeoning of research on this relatively new organizational unit, spanning various academic disciplines. In this chapter, we review and discuss the major developments in this area of research. Based on our review, we identify areas in need of future research, suggest research directions that have the potential to enhance theory development, and provide practical guidelines on managing and working in GVTs.

Although existing research on cohesion provides a robust understanding of the emergent phenomenon in small groups and teams, our comprehension of cohesion at the multisystem (MTS) level is quite limited. The simultaneous within- and between-team functioning inherent in MTSs produces more intricate dynamics than those observed at the team level. This added layer of complexity requires that many familiar team constructs, including cohesion, be systematically re-conceptualized and empirically examined through the lens of MTS theory (DeChurch & Zaccaro, 2010; Hackman, 2003). The present research addresses this gap by extending the conceptualization of team cohesion to the interteam level, and empirically investigating how cohesion functions across levels in a collective network of teams. Results from preliminary research suggest that intrateam and interteam cohesion share a curvilinear relationship with one another, while simultaneously interacting to affect overall system-level outcomes. This research not only illuminates the complexities associated with emergent phenomena in MTSs, but also serves as a starting point for continued, systematic research of the multilevel cohesive bonds that characterize MTS functioning.

The field of Human Resource Management (HRM) has long recognized the importance of interpersonal influence for employee and organizational effectiveness. HRM research and practice have focused primarily on individuals’ characteristics and behaviors as a means to understand “who” is influential in organizations, with substantially less attention paid to social networks. To reinvigorate a focus on network structures to explain interpersonal influence, the authors present a comprehensive account of how network structures enable and constrain influence within organizations. The authors begin by describing how power and status, two key determinants of individual influence in organizations, operate through different mechanisms, and delineate a range of network positions that yield power, reflect status, and/or capture realized influence. Then, the authors extend initial structural views of influence beyond the positions of individuals to consider how network structures within and between groups – capturing group social capital and/or shared leadership – enable and constrain groups’ ability to influence group members, other groups, and the broader organizational system. The authors also discuss how HRM may leverage these insights to facilitate interpersonal influence in ways that support individual, group, and organizational effectiveness.

Through collective management at Cisco Systems in the United States, practitioners at all levels of management, rather than just a select few, overcame various contradictions through “strategic collaborations” across divisions within the company to respond to the challenge of new business innovation. Moreover, through skillful management of leadership at the formal organization layer, the informal organization layer, and the psychological boundary layer (the boundary layer between the two aforementioned layers), all practitioners of the company demonstrated holistic leadership, which enabled creative dialogue, cooperation, and understanding as well as rapid decision-making and action. Strategic collaboration based on holistic leadership enables outstanding ideas to be readily incorporated into the organization and to be examined and acted on by a single team. This chapter discusses processes whereby collective management based on Cisco System’s holistic leadership changed staff behavior and the corporate culture to achieve business innovation.