Effect of cross-functional integration between operations and marketing on negative critical incidents

Synergies and conflicts between marketing and supply chain management key performance indicators

“…Organisations may merge these controls in an inappropriate way, due to the complexity of their productive environment. KPI monitors the daily activities through mechanisms that improve the future performance, not only the past one (Parmenter, 2010;Bardhan and Pattnaik, 2017). However, the development of KPIs was always a scaring task for organisations before the possible lack of incentives and support from senior management, as well as an unfavourable culture towards performance management (Chae, 2009).…”

“…Regarding barriers to integration, we emphasise that each organisational function seeks to meet individual goals and complement other duties to meet organisational goals. Impediments include: lack of communication, lack of awareness of the benefits of integration, lack of resources, lack of interest by the management, personal conflicts and inter-departmental goals (Ballou, 2006;Bardhan and Pattnaik, 2017). Turkulainen et al (2017) state that the standardisation of processes and the centralisation of decision-making contribute to the flow of information and to cross-functional integration; however, they can also generate process delays and work overload.…”

“…To define KPIs based on objectives rather than on conflicting goals may reduce uncertainties and conflicts between internal functions (Kahn, 1996;Ellinger et al, 2000;Horn et al, 2014). Bardhan and Pattnaik (2017) state that high integration levels improve the performance of new products though the synchronisation of marketing and operation activities.…”

“…The questionnaire was composed of five groups of questions based on the literature about cross-functional integration (Kahn and Mentzer, 1998;Ellinger, 2000;Jüttner et al, 2007;Bai et al, 2017) and KPIs (Chae, 2009;Parmenter, 2015;Bardhan and Pattnaik, 2017). The questions aimed to: 1 explain the KPIs from each area, according to the interviewee's perspective 2 rank the most important and the least important KPIs for the organisation as a whole 3 ask the interviewees' opinions about the effectiveness, frequency and reliability of each KPI 4 investigate the alignment of the KPI with the focus of the company 5 investigate the conflicts among KPIs.…”

Logistics, Marketing and Purchasing: Which Interfaces to Improve the Value Creation Process?

“…Two intra-organizational interfaces are particularly critical:  Downstream interface with marketing: analyzing the demand to be served, ideally in real time. It seeks to satisfy with the best service quality, cost and responsiveness, and to manage potential negative critical incidents stemming from dissatisfaction with product or services [5]. Marketing focuses on demand forecast, based on its customer markets' expertise to offer individualized and targeted commercial offerings [8][22] whereas logistics analyses the demand structure by providing flow monitoring in order to satisfy customers.…”