The Effect of Fit between Manufacturing Strategy, Strategic Orientation, and Marketing Strategy on Business Performance

Abstract

Marketing usually acts as the channel of communication between the marketing environment, and customer preference and usually deals with revenue maximization, whereas manufacturing usually is responsible for receiving the design for production and cost minimization (Brooksbank, 1991;Lilien and Weinstein, 1984).However, marketing and manufacturing are organizationally separated in most firms (Karmarkar and Lele, 2005;Jüttner, Christopher and Godsell, 2010). Therefore, the strategic alignment between marketing and manufacturing strategy is a crucial issue for academic study and empirical practice. A fact in most companies is that the great bulk of the assets used, the capital invested, the people employed, and management time, are on the operation side in a firm. It is apparent that the manufacturing is an indispensable constituent in the success of an organization as a whole. Ever since Skinner's famous work

Servitization and firm productivity premium across the product value chain: evidence from Russian manufacturing firms

“…Serviceoriented manufacturing firms prioritize market-related considerations during their early stages to gain a competitive edge in their industry, leading to significant improvements in overall enterprise performance. At this stage, firms focus on softer service-level elements, such as product customization and enhancing customer experience, rather than on the more tangible, functional-level factors like technical specifications or product quality (Feng et al, 2021;Chen, 2010). However, expanding other types of services can result in costs associated with them exceeding the expected revenue growth, which may not lead to increased performance.…”

Breaking away from servitization paradox to improve manufacturing enterprises' service innovation performance: the roles of market orientation and service supply chain dynamic capability

“…(3) Inverted U-type relationship. Chen (2010) compared the manufacturing enterprises in China and America and found that the servitization of Chinese manufacturing enterprises has a significant inverted U-type relationship with their economic benefits, while the American manufacturing enterprises have a single positive relationship. (4) Saddle-type relationship.…”

“…On the one hand, it may lead to conflicts between product-related resources and service-oriented resources. On the other hand, the unclear boundary of service scope can result in the mismatch between resources and business services (Chen, 2010), thus ultimately giving rise to resource allocation, not in line with the firm strategies, then inevitably leading to the decline of business performance. (4) Changing service demands of customers.…”