The Influence of a Firm's Cross‐Functional Orientation on Supply Chain Performance

Abstract

SummaryIn today's growing complexity of global networks of supply chains and hypercompetitive business environments, firms are confronted with the need to manage supply chain activities across functions and between firms. While prior research has noted the benefits of collaboration between functional areas for enhanced supply chain performance, there is not yet empirical evidence on whether an orientation toward working collectively among different functions for a firm's supply chain could influence customer satisfaction and supply chain responsiveness. A structured questionnaire was administered to U.K.‐based food service suppliers, and 112 usable mail responses were obtained. Measures supporting cross‐functional orientation (CFO) were developed using exploratory and confirmatory factor analyses, and hypotheses were tested via path analysis. The findings show that a CFO positively affects customer satisfaction and supply chain responsiveness. The length of Internet adoption was also found to play a critical role in enhancing CFO, through positive moderating relationships with customer satisfaction and supply chain responsiveness.