Implementing multi-organisational R and D contracts through multi-organisational matrix structures in large high technology projects

Abstract

Specialised R and D organisations operating in areas like astronomy, space or defence need to develop large high technology devices like radio telescopes or satellite earth stations. Such devices require a high level of R and D expertise in a diverse range of technology areas that are neither available nor viable to develop internally within the specialised R and D organisation. A radio telescope, for example, requires sophisticated design expertise and equipment in mechanical, civil, electronic and telecommunication engineering apart from expertise in radio astronomy. Tins vast range of expertise is normally not available within the radio astronomy research organisation nor within any single other R and D organisation. The specialised R and D organisation therefore has to contract a number of equipment suppliers as well as complementary R and D organisations to design different components of the single large R and D project such as setting up a new radio telescope. Design integration is provided by mutual consultation as no single organisation has the complete R and D "blueprint"for the large high technology project. This article presents a disguised case in winch four organisations a small scale private high-tech firm, two large public sector high tech firms and a technology university were contracted directly or indirectly to work with a specialised government R and D organisation in India on such a large high technology project. Since such projects are usually one of a kind, the contracted organisations incurred considerable developmental costs that could not be amortised to future projects. Initial agjreed contract terms that were found inadequate during the project could not be easily modified within the constraints of the spcialised government R and D organisation. However the opportunity to learn from the other high technology organisations and the pride of being associated with a nationally important project generated onsiderable interest and encouraged the involvement of the contracted firms and universities even beyond the contractual or "business" terms initially proposed and agreed. The large high technology project was implemented through a unique multi-organisational matrix structure where dual and even triad reporting relationships existed on both technical and administrative matters, within and across the contracted organisations. Positive relations and mutual forbearance among project managers across the highly heterogeneous organisations helped in the complex and iterative technical integration process and facilitated inter-organisational learning. The article explores the general costs and benefits for participating organisations and the unique co-ordination, integration and adaptation mechanisms required for initiating and implementing such multi-organisational R and D contracts within complex multiorganisational matrix structures for large high technology projects.