according to many authors in management and strategy's fields, innovation, research and development is a key resource for competitiveness and growth. But some scholars consider R&D as support function; however Hammer argues that main functions have to be core activities which bring added value to client and firm. other functions are considered support functions so they may be externalized to other parties.
"les fonctions de support logistique" described in Mintzberg's book in French: structure et dynamique des organisations (p. 49). goes in contrary of these theses of Hammer. is this point of view true or false? hopefully that business specialists and designers of structures answer us thoroughly.
Much depends on the type of organisation and its domain. For R&D intensive organisations, it is a core function; for others it is a support function.
For any organization the Core business functions are the production of final goods or services intended for the market or for third parties carried out by the enterprise with the intention of yielding income. Where as the support business function are carried out in order to permit or facilitate production of goods or services intended for the market/for third parties by the enterprise. R& D function may be core function or may be placed at support function depending upon the nature of business a firm is engaged in.
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From my point of view R&D is a core business activity. The main reasoning behind this is that R&D broadly is part of the marketing activity, since the research should provide answers to future customer needs.
Further, R&D includes activities for improving product quality and for improving manufacturing processes to reduce costs
Of course, R&D is core or not depends upon the nature of business by the organisation. In the current environment, we see that even pharma companies outsource part of the core R&D....hence I feel any activity for which value can be directly traced is core.
Referring to Chandler, Hammer and comparable guru's sounds as old school. Based on production/product added value/competitive advantage paradigm in a steady context R&D might be a supporting function. In a VUCA (Volatile, Uncertain, Complex and ambiguous) context R&D have to be core in order to create sustainable added value. Authors like Ries, Kurtzweil, Tegmark, Ismail, Suskind, Cooper Ramo provide more fit-for-future food for thought on the question.
The role of R&D is determined by the domain in which the company is operating. For organisations belonging to electronics, pharma and high tech industries the role of R&D would be predominant and core as they are in a very competitive and disruptive segment. To maintain and sustain the growth trajectory they need to invest in R&D and develop new products. In other industries role of R&D is to support the production department in solving the technical issues related to their current products.
Much depends on the type of organisation and its domain. For R&D intensive organisations, it is a core function; for others it is a support function.
R&D is a core function as it helps firms to continue to bring to the market new products and services. Without R&D a firm will face competition from "me too" products. R&D keeps a firm ahead of its competitors as it allows the firm to introduce new products/services, reduce costs, add new features to its existing portfolio of products. That is why while manufacturing is being outsourced or off-shored by many companies, R&D remains firmly in the firm itself as it is of strategic importance and a firm will not want others to know what it is working on.
When R&D is used to support or to improve manufacturing or services, it may be considered to be a support function but even in that role it is often an in-house activity and generally not outsourced or off-shored.
the eminent though of all the above clarifies the spectrum of implications, application, and effects of the concept R&D. it refers all the above. as the modern concept of R&D is not confines only to production/manufacturing and it become the core element in each function of every business. it is all about its projection. if the projection of R&D is for betterment of the existing,it is a supporting and it can be considered as core, if it projects the innovation of new.
I would thank all the scholars above who answered this question because we have to open discussion about new issues in business and management. Again, I think we must judge all opinions, of corse in the frame of respecting "gurus" as Mr. Gerard said like Mintzberg. It has been mentioned that this book was published in 1986, though we respect firmly a very famous scholar like Mintzberg and their ideas weigh heavily in the field of organization.
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