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Purpose

The purpose of this paper is to investigate how digital and physical product development can be successfully coordinated and which new product development and contextual practices are suitable for the combined digital-physical product development process.

Design/methodology/approach

The paper is based on a multiple-case study within one company with three digital-physical product development projects as the units of analysis. The data collection and analysis are guided by an existing research model. The case study is used deductively to illustrate the model.

Findings

When combining digital and physical development processes, one or both need to change. This may lead to sub-optimization of one or both of the processes but optimizes the combined digital-physical process. Various development and coordination practices as well as contextual measures must be put into place to improve fit to the digital-physical process characteristics and mixed materiality.

Research limitations/implications

The paper illustrates the research model with case evidence and suggests tentative theory in the form of propositions. Further research needs to explore the impact of the practices and contextual measures proposed.

Practical implications

This research proposes a range of conditions facilitating the successful development of digital-physical products.

Originality/value

This paper is among the first to empirically explore the complex process of digital-physical product development. Taking a process perspective and focusing on organizational and managerial practices and the influence of context, organization theory is used as the theoretical lens.

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