Cross‐functional integration and performance: what are the real benefits?

Abstract

PurposeConventional wisdom has it that cross‐functional integration is a “must”. The purpose of this paper is to take an information‐processing approach to integration and elaborate the conventional wisdom by theoretical examination of both the concept of integration as well as theoretical and empirical elaboration of its link to operational performance.Design/methodology/approachThe authors develop six propositions on how cross‐functional integration affects performance and test the propositions in an international sample of 266 manufacturing plant organizations in nine countries.FindingsThe results strongly suggest that disaggregation of performance is important, because the effects of cross‐functional integration on performance are contingent: even though the effects of achieved integration on several dimensions of operational performance are positive, the performance effect varies from one dimension to the next. This is an important finding given that performance has typically been treated at an aggregate level in prior research on the performance effects of integration.Originality/valueAlthough most research on integration has focused on the performance implications in particular, theoretical work on the nature of the integration‐performance relationship is required. In this paper, the authors argue the benefits of cross‐functional integration to be fundamentally context‐dependent and elaborate the link between integration and performance by developing the definition of the concept of integration further, as well as by disaggregation of performance, to its constituent dimensions.

From Supply Chain Integration to Operational Performance: The Moderating Effect of Market Uncertainty

“…No one, however, appear to have attempted any form of analytical model to depict the inter-play of supply chain integration (SCI), operational performance (OP) along with exogenous control factors in the business environment. Without an analytical model, the research findings on the relationship between SCI and other constructs often tends to be fragmented and inconsistent (Flynn et al 2010;Turkulainen and Ketokivi 2012). Arguably, a properly derived analytical model, if achievable, will provide a more holistic and detailed explanation to the problem than a formative evaluation.…”

“…Researchers have long articulated the necessity of a close integration between manufacturers and their suppliers and customers in attempt to deliver the supply chain's optimum performance (Tavakoli et al 2012; Flynn et al 2010;Turkulainen and Ketokivi 2012;Zhao et al 2013;Huang et al 2014;Prajogo et al 2015). The degree of interactions between the participating member of the supply chain and the appropriate inter-relationship postures have 2 become the widely acknowledged key enablers for supply chain success (Tyagi, et al, 2015).…”

Alinhamento interfuncional: um estudo exploratório sobre os pontos de contato entre marketing, logística e produção

“…A partir de então, diversos outros estudos foram desenvolvidos considerando diferentes aspectos da integração interfuncional. Enquanto alguns trabalhos se propuseram a conceituar a integração interfuncional (KAHN, 1996;KAHN;MENTZER, 1996;MURPHY;POIST, 1996), outros focaram aspectos aprofundados sobre o funcionamento da integração (ELLINGER; KELLER; HANSEN, 2006;PIMENTA, 2011), sua influência no desempenho (KAHN;MENTZER, 1998;ELLINGER, 2000;HAUSMAN;MONTGOMERY;ROTH, 2002;O'LEARY-KELLY;FLORES, 2002;GIMENEZ;VENTURA, 2005) e os pontos de contato (ST. JOHN;RUE, 1991;LYNCH;WICKER, 2008;PAIVA, 2010;TURKULAINEN;KETOKIVI, 2012).…”

Analysing the complexity of the model-based decision making processes within the industrial management context

“…Interestingly, many operational management researchers assume that "integration is a must" and that cross-functional coordination and integration are necessary . However, in later research, Turkulainen et al (2012) argued that the benefits of integration and crossfunctional coordination are context-dependent and sometimes disaggregation is beneficial.…”

“…In later research Turkulainen et al (2012) argued that the benefits are context-dependent and sometimes disaggregation is beneficial.…”