Enhancing Information Usefulness by Line Managers’ Involvement in Cross-Unit Activities

Abstract

Organization and management scholars have long advocated that efficient use of information is critical for firms to compete successfully in the modern marketplace. This study examines whether the use of managerial cross-unit involvement in an organization enhances managers’ propensity to use useful information provided by a functionally related unit in the organization. Senior line managers in a major global bank participated in our study in which they provided information related to their information processing and assessments of the usefulness of corporate audit information. We analyse the effect of line managers’ prior involvement with Corporate Audit using Throughput Modeling. This model allows us to understand how line managers’ cross-unit involvement influenced the way they process information received from Corporate Audit. Our results show that managers’ cross-unit involvement positively influences their assessment of information from Corporate Audit in a way that influences their propensity to use information from that unit. The results indicate that cross-unit involvement is more than an effective means of transmitting information — it can also be used as a means of building boundary-spanning capabilities in managers.