The impact of cross-functional integration of production and marketing on BTO competitiveness and performance

Abstract

This paper is to explore how cross-functional integration of production-marketing can impact the firm's build-to-order (BTO) competitiveness and performance. Meanwhile, from the perspective of organisational governance, the moderating effect of ownership types on these interrelationships is examined, and managerial implications for practitioners are provided. Empirical study using the structural equation modelling and regression approaches is applied. PMI improves BTO competitiveness (BTOC) and marketing performance, and BTOC also positively affects marketing outcome, which in turn impacts a firm's financial performance, as supported by the survey data. The PMI indirectly impacts financial performance by the mediating role of marketing performance. Results show that for Chinese manufacturers, state-owned firms have the lowest PMI performance and poorest BTO competitiveness. The paper uncovers the role of cross-functional integration of production-marketing integration in BTO manufacturing strategy, providing implications for different ownership firms to improve production-marketing integration.