Why should marketing and manufacturing work together?

Abstract

This paper presents an exploratory investigation of the manufacturing/marketing (hereafter M/M) interface. Drawing on the literature and prior empirical work in M/M strategies, we propose a path model for assessing the mediating impact of the M/M interface harmony-the functions' ability to work together-on M/M morale and business performance. Using two convenience samples of executives, we empirically test the direct and indirect influence of predisposing factors (antecedents) and performance outcomes (consequences) that are expected theoretically to influence or be influenced by M/M interface harmony.We find that 11 of the 13 hypothesized direct effects are significant at the 0.012 level or below; and attesting to the mediating influence of the M/M ability to work together, 11 of the 12 indirect effects were significant at the 0.02 level or below. Increasing the emphasis on the importance of marketing or manufacturing, or both, improves the ability of both functions to work harmoniously, which in turn impacts M/M morale. Interfunctional harmony appears to have a stronger influence on each function's morale than the importance attached to that function, ceteris paribus. Contrary to conventional wisdom, the study provides insight on the distinctive roles whereby marketing and manufacturing functions influence performance. Marketing acts to improve competitive position and profitability through the mediating influence of M/M interface harmony and improved marketing morale. However, manufacturing morale was not shown to be a significant factor impacting performance. Rather, emphasis on manufacturing impacts competitive position directly, as indicated by the resource-based view of manufacturing strategy. This exploratory study provides new empirical evidence that the M/M interface harmony, as expressed by the functions' ability to work together, matters significantly to business outcomes directly and indirectly.

Nurturing Internal Supply Chain Integration

“…Calantone et al (2002) used a survey and structural equation modelling to find that marketing's knowledge of manufacturing and manufacturing's evaluation of marketing communication both had positive relationships with marketing-manufacturing integration. Hausman et al (2002) proposed a model linking antecedents to manufacturing-marketing integration, and then integration to profits. They found using a survey that the strategic importance of both departments was positively related to integration, and integration was related to profits.…”

Enterprise resource planning (ERP) systems and the manufacturing–marketing interface: an information-processing theory view

“…for managing the MM interface). These include lateral relations between functions--for example the degree to which functions work together (Hausman et al, 2002;McAfee, 2002;O'Leary-Kelly and Flores, 2002) or consult with one another (Sawhney and Piper, 2002). Lateral relations are also an important interface mechanism used in concurrent design (Ettlie, 1995;Tatikonda and Montoya-Weiss, 2001).…”

Práticas de gestão em hospitais privados de médio porte em São Paulo, Brasil

“…Nesse caso, como mencionado por Simon 15 , o conhecimento mais próximo das diferentes necessidades de mercado, a coordenação das operações, P&D e vendas e as pressões dos concorrentes levariam a uma relação mais próxima entre produção/operações e outras áreas funcionais da empresa. Ward et al 40 e Hausman et al 41 mostraram a importância de uma orientação interfuncional para o desempenho da empresa. Em ambos os estudos, decisões interfuncionais são identificadas como uma das questões centrais para o aumento da competitividade.…”