Boundary‐spanning interfaces between logistics, production, marketing and new product development

Abstract

Investigates performance relationships for interfunctional process integration and specific logistics interface capabilities. The results indicate that competitive advantage is more likely to emanate from interfunctional process integration than individual function (sub) optimization. Also identifies logistics’ unique role as a boundary‐spanning interface between marketing, production, and new product development, as a potential source of competitive advantage. In terms of overall business performance, logistics followed by new product development are shown to have the greatest impact on profitability and growth. Further, logistics interface capabilities of customer service and logistics quality have the greatest independent impacts on business performance. In total these results imply that logistics, new product development, and demand‐management capabilities may provide firms with that extra competitive edge which shows up in “bottom line” performance. States that the relatively neglected areas of logistics boundary spanning and production customer service also deserve attention.