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Cross-functional integration has been an important factor for manufacturing firms' performance outcomes. The study aims to expand previous research by investigating the moderating role of goal-based incentive systems in the relationship between cross-functional integration and competitive performance.

Based on multi-source data from 269 manufacturing firms around the world, regression analysis is used to test the proposed research model.

The authors' findings suggest that cross-functional integration enhances manufacturers' innovation and operational performance. Moreover, cross-functional integration has a stronger impact on operational performance when firms implement a well-designed goal-based incentive system. However, the authors find that the goal-based incentive system does not moderate the relationship between cross-functional integration and innovation performance.

The study, by investigating the fit between goal-based incentive systems and cross-functional integration, provides practical insights into the ways that firms apply cross-functional integration and goal-based incentive systems to enhance competitive performance.

This paper outlines a theoretical framework for studying the integration of ethnically diverse workforces in public service organizations. Individual and work group characteristics are viewed as determinants of social identity and organizational identification. Social Identity theory suggests that individuals develop self‐concept through identification with salient groups, including ethnic groups and organizational roles. The extent to which these identifications are competitive or synergistic may depend upon organizational and work group characteristics and on organizational policies concerning selection, performance appraisal, and rewards. Cross‐functional teamwork may provide an integrative mechanism which can promote intergroup relations and encourage greater organizational commitment among an ethnically diverse workforce. Cross‐functional teams can contribute to reduced intergroup conflict and promote the development of organizational identification. The benefits of cross‐functional teams will be particularly important in situations where the workforce is diverse, but work groups are ethnically homogeneous.

The purpose of this study is to analyze the processes of interconnectedness in cross-functional relationships involved in customer value enabling.

In total, 20 in-depth interviews were conducted in three Brazilian companies from different industries. The critical incident technique was used for data collection and analysis. Content analysis was used to characterize the critical incidents within functional area networks.

Six main critical incidents were identified within the studied relationships: process, urgency, lack of trust, capacity and demand imbalance, motivation and challenge. The results show situations in which the collaborative behavior of the actors generates customer value facilitation.

The firms studied are small and medium, located in an emerging economy and are resource-constrained. Further research could be performed in organizations in other countries with different sizes and resources. Future studies could also include customers within the analyzed functional networks to evaluate value-in-use behavior.

Process, as a critical incident, may be composed of several elements that could affect the processes of value creation. Moreover, the adjustment between production capacity and demand should focus on avoiding propagation of functional problems through the processes. This focus may facilitate spontaneous community behavior and customer knowledge renewal.

This paper generates new qualitative bases to characterize the interconnectedness within functional networks within the perspective of relationship marketing. The study of the internal functions and processes revealed several particularities that are not evidenced in the extant literature, which is concentrated in relationships among companies. The quality of the relationship among the members of a functional network may affect the effectiveness of the promises of customer value, more specifically in value enabling.

The aim of the study was to investigate the differential effects of interpersonal relationships across functions on product and service innovation, and to examine the moderating role of market competition.

This study was based on a survey of senior and middle managers from 149 pharmaceutical firms in China.

Interpersonal relationships between employees across functions (IR-E) have a stronger impact on product innovation than do interpersonal relationships between managers across functions (IR-M), but IR-M have a stronger impact on service innovation. Market competition strengthens the effects of IR-M on both product and service innovation, but it attenuates the effect of IR-E on service innovation.

Although the effects of interpersonal relationships across functions are crucial to cross-functional interactions, these effects have received little attention in the literature. By identifying the potential “backfiring” effect of dual-level interpersonal relationships, this study contributes to knowledge of cross-functional relationships. It also deepens understanding of the relationship between cross-functional relationships and organizational innovation, especially in the service setting.

The purpose of this paper is to characterize the cross-functional integration processes between marketing and logistics, while considering five basic elements: boundary spanning activities, integration factors, level of integration, formality/informality and impacts of integration.

After an extensive literature review, five case studies were performed and in-depth interviews conducted. Both within-case and cross-case analysis was performed to better understand the cross-functional integration processes between marketing and logistics.

A characterization of cross-functional integration in the form of a managerial framework was proposed. This framework presents the elements in a process view, instead of disconnected parts of the integration processes. The framework and process perspective helps to explain the integration process, the roles and impacts of integration within organizations, while considering cultural formality and informality.

Qualitative data collection and analysis methods cannot achieve amplitude with respect to sampling nor generalize results. In spite of this, the implications revealed by the propositions may be applied not only to Brazilian companies, but organizations in other countries as well, due to the high level of heterogeneity of the sample, and the fact that they represent multinational organizations. Therefore, further research using broad-based survey data could test the correlations between the elements of cross-functional integration processes.

The identification of the cross-functional integration processes within organizations can help managers to facilitate the efforts of integration between marketing and logistics, reducing conflicts and improving business performance.

Case studies focussing specifically on five Brazilian organizations help provide evidence for an initial definition of cross-functional integration processes by analyzing five key elements according to their characteristics and respective roles. This research provides a strong foundation for future broad-based survey research.

The purpose of this paper is to develop a model to predict the antecedents of the integration level among marketing, logistics and production, considering the influence of formal and informal factors that generate integration and the existence of conflicts.

A survey of 179 participants from all regions of Brazil was conducted. A parsimonious model including four dimensions and 34 variables was developed through confirmatory factor analysis and structural equation modeling.

The field data corroborate studies dealing with the impact of various formal and informal integration factors on the cross-functional integration level as a construct. Furthermore, this paper concludes that the level of cross-functional can be defined as: the intensity of the relationship among internal functions which can be measured by the mutual existence of formal and informal factors and the absence of manifest conflicts.

The findings of this paper cannot be generalized because of the convenience sampling. Future research could apply a probabilistic sampling and try to explore other geographical settings in both national and international contexts.

The proposed model can generate important information for managers by pointing out variables that can predict the integration level and their impacts on the organizational performance. The paper concludes with examples about how the model could be useful in several practical situations.

This paper proposes a model with reasonable accuracy to predict the integration level and overcomes prior research limitations with respect to models to predict the antecedents of the integration level, particularly the role of conflicts in the integration processes.

The primary objective of this research is to test a model examining interpersonal trust between marketing managers and R&D managers during new product development projects.

In this study interpersonal trust as a bi‐dimensional construct with cognitive and affective components is conceptualised. The authors' integrative structural model specifies Weber's structural/bureaucratic dimensions – formalisation and centralisation to predict three communication dimensions, communication frequency, quality, and bi‐directionality. In turn these communication dimensions are used to predict cognition‐based trust, and affect‐based trust. In addition, the paper models the direct effects of the three communication dimensions on a dependent variable – perceived relationship effectiveness. The hypothesised model consists of 16 hypotheses, seven of which relate to the two focal interpersonal trust constructs. The measures were tested and a structural model estimated by using PLS. Data were provided by 184 R&D managers in Australia, reporting on their working relationship with a counterpart marketing manager during a recent product development project.

The hypothesized model has high explanatory power and it was found that both trust dimensions strongly influenced the effectiveness of marketing/R&D relationships during new product development, with cognition‐based trust having the strongest impact. The results also reveal which forms of communication help to build interpersonal trust. The most powerful effect was from communication quality to cognition‐based trust. The next strongest effects were from bi‐directional communication, which was a strong predictor of affect‐based trust, and a somewhat weaker predictor of cognition‐based trust. Interestingly, the direct effects of our three communication behaviours on relationship effectiveness were modest, suggesting that their relationship building effects are largely indirect. Last, it is revealed that bureaucratic means of control on product development projects have mixed effects. As expected, centralisation reduces cross‐functional communication. In contrast, formalisation has a positive effect during product development, as it stimulates both the frequency and bi‐directionality of communication between marketing managers and R&D managers on these projects.

This is the first study to treat interpersonal trust as the focal construct in marketing/R&D relationships during new product development. Moreover, it is the only study of marketing/R&D relationships to conceptualise, measure, and model two underlying dimensions of interpersonal trust (cognition‐based trust, and affect‐based trust). Our study also integrates aspects of Weber's theory of bureaucracy, with interaction theory, and demonstrates the strong links between these theoretical frameworks.

This paper aims to improve marketing managers’ use of information from sales. The authors propose and empirically test the link between cross-functional trust and marketing’s use of information from sales, and whether this effect is contingent on marketing’s power within the firm.

Cross-sectional survey data were collected from 338 large-scale Hungarian firms. Structural equation modeling and bootstrap procedures were used to test the hypotheses.

The effect of cross-functional trust on marketing managers’ use of sales information is fully mediated by sales–marketing integration and marketing’s perception of information quality. However, the power of marketing within the firm moderates this mediating relationship.

This paper provides empirical evidence concerning the mediating mechanisms of transferring cross-functional trust to marketing’s successful use of information from sales. The findings imply that cross-functional trust can improve marketing managers’ use of sales information of firms with powerful marketing units by facilitating integration, whereas it can improve the use of sales information of firms with low marketing power by improving marketing managers’ perception of information quality from sales.

This is the first study that models and empirically investigates marketing managers’ use of information collected by sales. The current study conceptually links and advances extant knowledge on the literatures on the sales–marketing interface and utilization of market information at the individual level and increases the understanding of how cross-functional trust contributes to information use under different contingencies of marketing power.

This paper is to explore how cross-functional integration (CFI) of production-marketing can impact the firm's build-to-order (BTO) competitiveness, marketing performance (MP) and financial performance (FP).

Empirical study with the structural equation modeling approach is applied. Six hypotheses are constructed and tested based on survey data collected from Chinese manufacturing firms.

The survey data supports that production-marketing integration (PMI) improves BTO competitiveness (BTOC) and MP and that BTOC also positively affects marketing outcome which, in turn, impacts a firm's FP. The results reveal that CFI of production-marketing is an effective approach for achieving the BTO manufacturing strategy and can improve organizational performance.

The paper uncovers the role of CFI of production-marketing in BTO manufacturing strategy and its impacts on a firm's MP and FP and provides important managerial implications for practitioners to improve organizational time-based competitiveness and performance in today's time-based competition era.

Increasingly, supplier relationship management (SRM) is being viewed as strategic, process‐oriented, cross‐functional, and value‐creating for buyer and seller, and a means of achieving superior financial performance. This paper seeks to describe a macro level cross‐functional view of SRM and to provide a structure for managing business‐to‐business relationships to co‐create value and increase shareholder value.

In order to identify the sub‐processes of SRM at the strategic and operational levels as well as the activities that comprise each sub‐process, focus group sessions were conducted with executives from a range of industries. The focus groups were supplemented with visits to companies identified in the focus groups as having the most advanced SRM practices.

The research resulted in a framework that managers can use to implement a cross‐functional, cross‐firm, SRM process in business‐to‐business relationships.

The research is based on focus groups with executives in 15 companies representing nine industries and multiple positions in the supply chain, including retailers, distributors, manufacturers and suppliers. While all companies had global operations, only one was based outside of the USA. Nevertheless, the framework has been presented in executive seminars in North and South America, Europe, Asia and Australia with very positive feedback.

The framework can be used by managers and has been successfully implemented in large corporations. The view of SRM presented involves all business functions, which extends the current thinking.

The framework includes all business functions and was developed with input from executives representing major corporations with global operations.