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Purpose

Research on virtual teams is still in its nascent stages. The purpose of this paper is to develop a theoretically grounded integrative framework of key factors influencing the effectiveness of virtual new product development teams.

Design/methodology/approach

The framework is developed by integrating perspectives from several research streams, including relationship marketing, new product development, knowledge management, the resource‐based view, virtual teams, innovation, and communication.

Findings

Factors impacting effective virtual interactions (i.e. improved decision quality and decision speed) and new product development (i.e. increased levels of creativity, innovativeness, and product development speed) are proposed.

Research limitations/implications

Guidance is provided for managing virtual new product development teams. The paper offers testable propositions that can serve as a foundation for further research in this promising area.

Originality/value

By synthesizing relevant perspectives from diverse literature streams, the paper offers a new framework for understanding and improving the functioning of virtual new product development teams.

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