Innovation for Multiproject Management: The Case of Component Commonality

Abstract

To attain benefits and value, multiproject R&D management seeks synergy between projects. Selecting or inventing appropriate end-product components within R&D programs is a concrete example of the synergy between projects. Lowering the number of different components used across projects (i.e., increasing component commonality) can lower end-product costs, which can contribute to firm-level profitability. Prior research, however, shows component commonality as a limitation of innovativeness in multiproject R&D. Conversely, this article shows that component commonality can also serve as the source of innovation, making component commonality an area of special interest to multiproject R&D management and research.