Interfunctional Coordination Research Articles

Synergy of interfunctional cooperation and services in companies producing electrical equipment and electronic components in the Czech Republic: pilot study

Research background: Interfunctional coordination (IFC) is a part of market orientation and at the same time an approach which helps to improve cooperation between different departments or functions in a company. Market orientation is an approach aimed at external and internal elements and activities leading to performance increase. Services offered by a manufacturer are activities complementing their products. Manufacturers can benefit from the service differentiation and use it to design alternative marketing strategies. Generally, IFC and services ? contributes to higher positive effect on business performance. For this reason, it is interesting to know if synergy of IFC and services have a higher positive effect on business performance.
 Purpose of the article: This article aims to determine how IFC and services at manufacturing companies in the Czech Republic influence business performance. The research question is as follows: Does the synergy of IFC and services in companies producing electrical equipment and electronic components have a higher positive effect on business performance?
 Methods: Sixty SME?s filled in a questionnaire to gather information about IFC and services. For measurement of correlation for two variables, Spearman's rank correlation coefficient was chosen. Regression analysis was used for measuring the synergy.
 Findings & Value added: The main finding shows that the synergy of the quantities observed has not been confirmed, although some of the following relations were approved such as a positive relationship between: a) some items of IFC and items of business performance, b) some items of services and items of business performance and c) items of IFC and items of services. The result of the paper shows further consequences of IFC and services in today?s manufacturing companies.

Interfunctional Coordination and its Influence on Customer Success

AbstractThe purpose of the paper is to expand the knowledge about interfunctional coordination (IFC). The term IFC has been used for 50 years and it extends to many branches. The most popular ones are in marketing, logistics and IT management. The purpose of IFC is to develop collaboration between the diverse departments within an organization. The goal of the paper is to describe the relationship between IFC on the B2B market, especially if IFC in one company can influence customer success in business. The research was undertaken with companies producing electronic components and electrical equipment in the region of South Moravia in the Czech Republic. 60 SME have answered the questionnaire. The Spearman’s rank correlation test was used to analyse the influence of IFC of companies on the success of their customers. The results show that the implementation of IFC in a company has a positive relationship on the success of its customers.

Использование механизмов межфункциональной логистической координации в цепях поставок

The problems of inter-functional logistic coordination are considered in the article, the most actual mechanisms of logistic coordination are identified and the ways of their development are determined on the basis of: standardization, horizontal management, creation of common information space at enterprises, joint definition of demand, improvement of staff motivation system. In the author’s opinion, the use of the mechanisms considered in the practice of the companies allows the best way to harmonize the joint activities of the subdivisions of the enterprises participating in the supply chains.

Strategic Orientation and External Environment on Organizational Commitment

Aims of this study is to investigate the impact of the dimensions of strategic orientation (i.e. customer orientation, competitor orientation and interfunctional coordination) and the aspects of external environment (i.e., market turbulence and competitive intensity) on organizational commitment in the agricultural bank in AL-Qadissya governorate in Iraq. Materials and methods -To achieve the aim the data collected through questionnaire survey applied to 54 employees in various departments of the bank. The data analysis performed by using SPSS (version 20) and R program. Results -Statistical findings revealed there is a significant relationship between competitor orientation, interfunctional coordination, competitive intensity and organizational commitment. There is no significant relationship between market turbulence, customer orientation and organizational commitment. Conclusion - These findings introduce useful views and conclusion for the management to take into account for developing organizational commitment among their employees. According to the study, all the dimensions of strategic orientation and influences of external environment to increase organizational commitment could enhance findings. Besides, findings have significant implications for a bank’s strategies to develop organizational commitment and to uncover the influences of market turbulence and competitive intensity. Managers should take interest in the role of strategic orientation besides external environment to improve organizational commitment. Managers should also develop a robust culture which reflects organizational commitment in order to ensure the survival of the bank and its growth when facing competitors and overcoming any challenges.

Investigation of Market Orientation and Self-Efficacy Effects on Sale Force Performance: Mediator Role of Sales Force Creativity and Innovation Implementation

ABSTRACTThis research seeks to investigate the effect of sales force market orientation and self-efficacy on sales force performance, taking into account the mediator role of sales creativity and innovation performance. The statistical population of this research is the sales force of insurance agents, including car insurance, life insurance, etc. Using a simple sampling method, among 50 branches of insurance agents in Yazd province, 120 individuals were randomly selected. Using a Morgan table, 92 individuals were selected, and 95 questionnaires were distributed to the sample; after the removal of incomplete, illegible, or not delivered responses, 79 were collected, which was appropriate and acceptable. For data analysis, Smart PLS software and partial least squares method were used. The results of the research indicate that, among the three dimensions of sales market orientation, customer orientation and interfunctional coordination have a positive and significant impact on sales force creativity. Also, the implementation of sales force innovation mediates the relationship between sales force creativity and performance, while sales force self-efficacy has a significant impact on sales force performance.

Expertise, Leadership Style and Communication in Interfunctional Coordination

The purpose of the paper is to evaluate the effect of expertise, leadership style and communication on coordination by electrical engineering companies. It is unexceptionable that expertise, communication, teamwork and mutual cooperation are fundamental for interfunctional coordination (IFC). A questionnaire in the form of the Likert scale was prepared, it involves information about IFC. The questionnaire was tested for internal consistency and reliability using Cronbach alpha. The complete database of 60 SMEs was analysed by using statistical software package Minitab, version 17. Spearman’s rank correlation test was used to answer the hypotheses. The main findings show: (1) A positive correlation among items related to expertise and communications and IFC. (2) Some positive correlation among items related to leadership style and IFC – positive correlation shows only with team-work and mutual cooperation. The results of the paper can assist companies in their attitude towards IFC, by reason that companies can better implement IFC. The novelty of the paper is in determination some possible connectedness of IFC, concretely the correlation among experts, leadership style and communications with IFC of a company. The results of the paper can assist companies in their attitude towards IFC, by reason that companies can better implement IFC.

The role of market orientation in the performance of born global firms: a multi-dimensional construct approach

This study investigated the multi-dimensional effect of market orientation in the performance of born global firms. To date, the existing literature lacks empirical findings from developing country contexts and the conceptualisation of market orientation as a multi-dimensional construct. Thus, this study contributes to fill the said gaps in the Sri Lankan context, a developing country. The conceptual model was tested drawing on data from 225 information and communication technology (ICT) born global firms and the structural equation modelling (SEM) was performed to test the hypothesised relationships. The findings indicate that all three dimensions of market orientation: customer orientation, competitor orientation and inter-functional coordination, significantly and positively influence the performance of ICT born global firms in Sri Lanka. The findings suggest several insights into the market orientation and performance relationship.

Elevating Design in the Organization

Following evidence of its positive contribution to innovation and company performance, many firms are seeking to elevate design to a strategic level. However, little is known as to how this can be achieved. This study draws on the literatures concerned with elevating organizational functions and with organizational legitimacy, and aims to unravel and detail critical practices and potential tensions influencing the elevation of design's status in firms. To do so, 53 in‐depth interviews were undertaken with key informants, representing a range of functional specialisms, in 12 companies, including large multinational companies as well as small and medium‐sized enterprises (SMEs). Findings show how six practices—top management support, leadership of the design function, generating awareness of design's role and contribution, interfunctional coordination, evaluation of design, and formalization of product and service development processes—affect the design elevation process. In contrast with previous studies on raising the status of organizational functions, this research reveals that the same practice can play both positive and negative roles, and that there are fundamental tensions, which should be reconciled if design's status is to be elevated. Drawing on the concept of organizational legitimacy, we also examine how design moves beyond being seen as pragmatically useful, to being identified as a relevant, alternative way of operating, to being regarded as essential for success. The article concludes by articulating contributions to design and innovation management theory and practice, and to the body of scholarly work seeking to understand how to elevate the status of a function.

Elevating design in the organization

Following evidence of its positive contribution to innovation and company performance, many firms are seeking to elevate design to a strategic level. However, little is known as to how this can be achieved. This study draws on the literatures concerned with elevating organizational functions and with organizational legitimacy, and aims to unravel and detail critical practices and potential tensions influencing the elevation of design’s status in firms. To do so, 53 in-depth interviews were undertaken with key informants, representing a range of functional specialisms, in 12 companies, including large multinational companies as well as SMEs. Findings show how six practices – top management support, leadership of the design function, generating awareness of design’s role and contribution, inter-functional coordination, evaluation of design, and formalization of product and service development processes – affect the design elevation process. In contrast with previous studies on raising the status of organizational functions, this research reveals that the same practive can play both positive and negative roles, and that there are fundamental tensions, which should be reconciled if design’s status is to be elevated. Drawing on the concept of organizational legitimacy, we also examine how design moves beyond being seen as pragmatically useful, to being identified as a relevant, alternative way of operating, to being regarded as essential for success. The article concludes by articulating contributions to design and innovation management theory and practice, and to the body of scholarly work seeking to understand how to elevate the status of a function.

English

The purpose of this study is to identify the specific marketing activities that contribute most to the performance improvement of seed producer cooperatives (SPCs) in Ethiopia. Both quantitative and qualitative procedures were adopted to extract information from knowledgeable and experienced experts using structured questionnaires. Results indicate that clear differences exist between Ethiopian SPCs in their intensity and quality of execution of marketing activities, indicating that these activities are managed and controlled by SPCs themselves. However, the similarity in patterns of intensity and quality of execution of marketing activities shows that these effects cannot be disentangled in the Ethiopian SPCs context. Ethiopian SPCs performed well on marketing activities related to interfunctional coordination, but poorly on activities associated with competitor orientation. SPCs are likely to perform better when they use a variety of marketing activities including quality control of product (seed), product differentiation, managing customer and supplier relationships, responding to customers and competitors, customer and competitor assessment, leadership, integration of activities, and interconnections among committees and members. Hence, to provide value to customers SPCs need to have resources and the capabilities to coordinate these resources in order to execute marketing activities efficiently and effectively. Key words: Intensity of implementation, marketing activities, quality of implementation, seed producer cooperatives

The influence of market orientation on firm performance and members’ livelihood in Ethiopian seed producer cooperatives

ABSTRACTThe positive effects of market orientation and its components on firm performance are empirically supported by studies conducted for large firms in developed economies. However, its influence on performance in developing and emerging (D&E) economies, particularly under a cooperative's context, has been under-researched. This paper examines the impact of market orientation components on the performance of seed producer cooperatives (SPCs) in Ethiopia. Results show that customer orientation, interfunctional coordination, and supplier orientation, but not competitor orientation, contribute to higher business performance. Our findings confirm that customer orientation is the key factor for superior business performance in D&E economies. Business performance has a mediating effect between market orientation components and livelihood performance. Interfunctional coordination and supplier orientation influence the livelihood of member farmers both directly and indirectly via business performance. The study concludes that market orientation of SPCs is very important for business performance and provides a strong basis for the livelihood of seed producer families. SPCs can improve their performance and the livelihood of member-farmer families by implementing market oriented strategies, emphasising the key components of market orientation.

Impact of firm’s customer orientation on performance: the moderating role of interfunctional coordination and employee commitment

ABSTRACTThe effect of a firm’s strategic orientation, such as customer orientation, on performance has received research attention; however, knowledge regarding its specific effect on the customer-related performance measures is very limited. Most of the previous attempts have focused on developing a direct relationship with a firm’s financial performance, which contradicts with the central tenet of customer orientation. In addition, in this context, the role of employees’ committed behavior, customer contact time and a firm’s emphasis on interfunctional coordination for the efficacy of customer orientation have received little research attention. Drawing on dynamic capability theory and service climate theory, this study addresses how employees and a firm’s interfunctional coordination play a key role in the firm’s customer orientation to drive its customer-related performance. Based on a sample from the UK’s service industry, the findings support the arguments. The findings also offer new insights into the interplay of different strategic orientations and employees’ role in driving superior performance through customer orientation.

Service innovativeness and the structuring of organizations: The moderating roles of learning orientation and inter-functional coordination

This paper aims to investigate the influence of organizational structure on service innovativeness by testing the moderating roles of learning orientation and inter-functional coordination. This helps to understand how organic structure influences service innovativeness when it is effectively leveraged with favorable organizational factors. Data were collected from 178 hotel managers and executives in Japan and moderated regression analysis was performed to analyze the data. Findings of the study suggest that higher levels of service innovativeness are positively related to higher levels of hotel business performance. In addition, organic structure makes a positive influence on service innovativeness and an increase in the levels of learning orientation boost the effectiveness of organic structure on service innovativeness. Moreover, the positive association between organic structure and service innovativeness become stronger when all firm’s functions make an attempt to cooperate and contribute to disseminating customers and competitors’ information in the hotels. These findings contribute to understanding how hotel service innovation is affected by service innovativeness, organizational structure, learning orientation and inter-functional coordination.

Exploring market orientation, innovation, and financial performance in agricultural value chains in emerging economies

This study explored the usefulness of market orientation in an agricultural value chain in an emerging economy: Vietnam. Drawing on data from 190 actors in a beef cattle value chain in Vietnam's Central Highlands, the study examined the relationship between market orientation and innovation. The findings indicate that there is no significant relationship between market orientation and performance. However, customer orientation and inter-functional coordination are positively related to innovation, and there is a positive relationship between innovation and financial performance. The findings provide insight into the relationships among market orientation, innovation, and performance in agricultural value chains in emerging economies.

Where the eyes go, the body follows?: Understanding the impact of strategic orientation on corporate social performance

This research seeks to address two questions with respect to firm corporate social performance (CSP): (1) “do different strategic orientations have differential impacts on a firm's overall CSP?”; and, if so, (2) “is there an effect of a firm's strategic orientation on the types of CSP that a firm implements?” Using a unique dataset that combines survey data on firms' strategic orientations for 115 US-based firms with CSP data from MSCI-ESG, we empirically examine the impacts on CSP levels of four different firm strategic orientations: customer, competitor, interfunctional coordination, and shareholder. Our empirical analysis demonstrates that (1) firms with a stronger orientation toward customers have higher levels of CSP overall, and (2) when firms have a stronger customer orientation, we find that the firm has higher CSP levels in domains dedicated toward secondary stakeholders, while firms with a stronger shareholder orientation exhibit higher levels of CSP dedicated toward primary stakeholders.

Does importer involvement contribute to product innovation? The role of export market factors and intra-firm coordination

Relying on insights from resource dependence and information processing theory, this study analyzes the extent to which an importer's involvement influences product innovation at the industrial exporter firm. We consider two modes of involvement, collecting importer's feedback and importer integration in the product development effort. We propose that the relationship between importer involvement and product innovation is contingent upon the level of inter-functional coordination within the development firm, and contextual factors related to the export market. Data were collected from export companies participating in different international business-to-business markets. Results show that firms with high inter-functional coordination achieved higher leverage from importer feedback, but obtain no impact from importer integration in product development (PD). Contextual factors affect the relationship between importer involvement and product innovation: importer feedback affects product innovation in environments with intense competition and low technological turbulence. Importer integration in PD has a significant effect on product innovation in environments with low competitive intensity and high technological turbulence. This study contributes to a better understanding of the conditions that allow an exporter firm to create value through external relationships. Theoretical and managerial implications of these findings are discussed.

The Impact of Market Orientation Indices, Marketing Innovation, and Competitive Advantages on the Business Performance in Distributer Enterprises

Purpose – Market orientation is a key factor for business performance in today’s fluctuating conditions. This study investigates whether the employment of innovation can improve the innovative capability and increase the performance by gaining competitive advantages or not. Therefore, this study aims to investigate the effects of market orientation on the performance of small and medium size distributer enterprises (SMDEs) in Iran. Research design, data, and methodology – Customer orientation, Competitor orientation, and Inter-functional coordination have been regarded as market orientation indices to determine the effects of these indices on marketing innovation, gaining competitive advantages, and companies’ performance as well. Data were collected from managers and experts in SMDEs in Iran. The structural equations modeling are used for analysis. Results – The results indicated that marketing innovation has been improved in competitive companies that enjoyed a high level of Inter-functional coordination among the various units. Besides, marketing innovation resulted in gaining competitive advantages regarding cost management, concentration, and differentiation in these companies. In addition, it was observed that SMDEs that obtain competitive advantages are equipped to reap superior performance. Conclusions – With cost management, differentiation and concentration are more likely to enhance the enterprise efficiency and effectiveness than other companies. Additionally, competitiveness, inter-functional coordination, and marketing innovation in SMDEs have a positive impact on marketing innovation.

Streamlining interfunctional coordination in industrial SMEs

Although the pattern of interfunctional coordination for large firms has been described and studied, little attention is paid to its fit to industrial small and medium-sized enterprises (I-SMEs). This research updates the conventional understanding by investigating the interfunctional coordination pattern in market-oriented I-SMEs, taking into account the customer environment and the organizational environment. Using a multiple case studies method, this study describes the market-oriented practices of interfunctional coordination in I-SMEs. Drawing upon the findings, this study proposes a useful guideline, namely, streamlined interfunctional coordination, for I-SMEs to improve the marketing outcomes. It suggests that, to enhance the effectiveness of interfunctional coordination, I-SMEs should reduce their coordinative intensity in information exchange and limit the amount of relational flows in relationship exchange. This research offers insights into managing organizational culture and market orientation for I-SMEs.

THE MARKET ORIENTATION AND PERFORMANCE RELATIONSHIP: THE EMPIRICAL LINK IN PRIVATE UNIVERSITIES

This study examines the empirical link between three dimensions of market orientation, namely, stu­dent orientation, competitor orientation and inter-functional coordination, and overall private uni­ver­sity per­formance in Kopertis X. It was based on an empirical investigation of private universities located in In­do­nesia’s provinces of West Sumatera, Riau, Jambi, and Kepulauan Riau. The primary data for the study were collected from a self-administered mail survey of 237 questionnaires from the private university re­sul­­ting in a sample of 114 usable responses being returned. From the application of the multiple re­gres­sion ana­lysis it was concluded that all three dimensions of market orientation had a significant impact on private un­iversity performance. Student orientation as a predictor variable is the strongest predictor of pri­vate uni­ver­­sity performance and followed by competitor orientation, and inter-functional coordination.

An Empirical Examination of Knowledge Management Processes and Market Orientation, Innovation Capability, and Organisational Performance: Insights from Jordan

There are many studies discussing how knowledge management and market orientation (MO) are positively related to innovation, but an examination of the impact of the knowledge management processes (KMP) — as we conceptualize the four in this study — and MO on the innovation capability of organisations which in turn impact organisational performance has never been done. Hence, this study formulates a comprehensive conceptual framework which encompasses KMP (knowledge creation, intra-organisational knowledge sharing and application, external knowledge acquisition, and knowledge storage and documentation), MO (customer orientation, competitor orientation and inter-functional coordination), innovation capability (product, process, marketing and organisational innovation), and organisational performance (product quality, operational performance and financial performance). Then empirically test the relationships among the study models with the focus on the mediating role of innovation capability. The design of the study is based on a survey of 210 Jordanian manufacturing and service organisations. The sample of this study encompasses the mid-level managers of the organisations. About 440 self-administered questionnaires were distributed among the respondents. Confirmatory factor analysis is undertaken to assess statistically the validity of the study measures. Then the structural equation modelling (SEM) path analysis is used to assess the structural relationship of KMP, MO with innovation capability, and organisational performance. The results of the study reveal that engagement in KMP and MO can lead to better innovation capability in the organisations which in turn can lead to better organisational performance. The results we observe concerning this sample of companies may not be applicable to a greater population of companies from other countries with a different technological base or to specific subsectors of the manufacturing industry (e.g. the food industry). Moreover, the study represents only snapshots since it utilized self-administered questionnaires which also have no qualitative data. For the practicing managers intending to increase the rate of innovation in their firms, this means that KMP and MO are important activities to master. Additionally, managers should put additional emphasis on innovation as it is an important element for achieving improved overall firm’s performance and sustainable competitive power.