Product development with multiple partners: Strategies and conﬂicts in networks Kristin B. Munksgaard ⁎, Ann H. Clarke, Pia Storvang, Pia G. Erichsen Department of Entrepreneurship and Relationship Management, University of Southern Denmark, Engstien 1, 6000 Kolding, Denmark abstract article info Article history: Received 2 March 2010 Received in revised form 30 November 2010 Accepted 30 May 2011 Available online 2 July 2011 Keywords: Product development Network strategies Conﬂict Development partners Network analysis This paper provides an insight into and discusses the variety of sources of conﬂict in linking multiple partners in a network to the product development process. Conﬂict issues are discussed in relation to focal company strategies for product development within networks. On the basis of three case studies representing three different strategic intentions and network situations, our ﬁndings suggest that the sources of conﬂict are related to the actors' deﬁnition and negotiation of the development task at hand. The study suggests that the ability to combine and ﬁnd complementarities in the strategic intentions of the multiple participating actors is essential to accomplish innovation. The paper concludes that inﬂuential actors initiating or acceding to changes are crucial for reaching a positive outcome in joint product development. © 2011 Elsevier Inc. All rights reserved. 1. Introduction Interacting with multiple partners in networks is often seen to be the key to successful product development, for networks provide sources for new innovative ideas, as well as access to the specialized knowledge of partners (Hakansson, 1989; Powell, Koput, & Smith- Doerr, 1996; Ritter & Walter, 2003). Product development with multiple partners is seen today to be the most common way of working in supply networks. However, facilitating cooperation between mul- tiple partners is not an easy task to accomplish. We still do not know enough about product development cooperation in different kinds of networks, the challenges in these networks and how to solve the conﬂict that arises. Conﬂict is often related to multiple customers having varying needs and requirements. Therefore, the ﬁrm will have to weigh up the different demands of these when innovating. Conﬂict may arise when multiple development partners, intermediary companies and suppliers impose their special requirements on the product development process. Different network relationships may be the basis of current operations and developments, but they can also restrict product development, leading to conﬂict (Ritter & Ford, 2004). An innovative company seeking to build a product development strategy in the network faces the challenge of linking multiple customers, suppliers and partners in the network to the product development process. Due to interdependencies inherent within a joint development effort, single actors seldom act in line with their own strategic intentions for product development (Ford & Hakansson, 2005; Hakansson, 1982). Instead, a combination of mutually compat- ible strategic intentions for product development across partners becomes central. In the network, the willingness to adapt and adjust will vary between partners and conﬂict may arise when one actor tries to lead the joint development effort (Ford & Mouzas, 2007; Wilkinson & Young, 2005). Based on the above discussion, the following research questions are proposed: Which sources of conﬂict can be observed when linking multiple actors to the product development process? How do these conﬂicts inﬂuence a company's strategies for product development in networks? This research aims to contribute to our knowledge of the challenges related to product development with multiple partners. Whereas existing research has taught us the many beneﬁts found in co-operation, we know less of the conﬂicts arising when actors seek to facilitate cooperation. The empirical basis of this article consists of a multiple case study of companies in the food industry, the construction industry and the energy sector. The focal companies each sought to link with multiple partners in their product development processes. The cases exemplify three different product development strategies: (1) changing existing relationships; (2) building new relationships; and (3) changing net- work position. Depending on the required changes in process and structure, the innovative effort may encompass different sources of conﬂict between the innovating actors. The contribution that this paper makes is to study and outline the sources of conﬂict in networks associated with the product development strategy of the actor ﬁrms within these networks. The paper is structured as follows. The ﬁrst section introduces the theoretical basis for discussing the actors' product development strategies in networks and the potential conﬂicts encountered. The second section outlines the methodology associated with conducting Industrial Marketing Management 41 (2012) 438–447 ⁎ Corresponding author. Tel.: + 45 6550 1467; fax: + 45 6550 1357. E-mail addresses: kbm@sam.sdu.dk (K.B. Munksgaard), ahc@sam.sdu.dk (A.H. Clarke), spi@sam.sdu.dk (P. Storvang), pie@sam.sdu.dk (P.G. Erichsen). 0019-8501/$ – see front matter © 2011 Elsevier Inc. All rights reserved. doi:10.1016/j.indmarman.2011.06.018 Contents lists available at ScienceDirect Industrial Marketing Management