• Effective and efficient organisation of research and development is critical for firm performance. In this regard the centralisation versus decentralisation of R&D is a key issue that has been debated heavily. The resource-based view argues that R&D activities that are of strategic importance, have a wide applicability within the firms, or are potentially disruptive should be under tighter corporate control. However, while previous research has redominantly focused on product innovation, often equating R&D with the development of new products, this study examines the centralisation-decentralisation issue from a product, as well as a process innovation perspective. In this regard, case studies of three multinational companies, representing food and beverage, mining and minerals, and pulp and paper industry sectors advances the understanding of organising intrafirm R&D. The study reveals dual structures within the R&D organisation; one for product innovation and one for process innovation. A matrix consisting of product-process innovation on one axis and centralisation-decentralisation on the other is presented to illustrate nine forms in which the intrafirm R&D organisation can be configured. Depending on the objective of product and process innovation the R&D organisation should be either centralised or decentralised. Thus, by examining intrafirm centralisation-decentralisation in R&D organisations through a product and process innovation perspective this study opens up the R&D organisation and provide guidelines for organising intrafirm R&D.

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