The impact of cross-functional coordination on customer coordination and operational performance: an information processing view

Abstract

PurposeThis study aims to investigate the impact of cross-functional coordination (cross-functional system, process and team coordination) on customer coordination (customer strategic and operational coordination) and operational performance. Following the lens of information processing theory (IPT), this study examines the diverse mechanisms of cross-functional coordination practices in enhancing firms’ information processing capabilities (IPCs) to cope with the higher information processing demands resulting from customer coordination, finally improving operational performance.Design/methodology/approachBased on data collected from 410 Chinese manufacturers, the authors use the structural equation modeling method to test the theoretical model.FindingsThe authors found that cross-functional system coordination is positively associated with customer operational coordination (COC) but not customer strategic coordination (CSC). Cross-functional process coordination increases both customer strategic and operational coordination. Cross-functional team coordination significantly promotes CSC but not COC. Both customer operational and strategic coordination facilitate operational performance.Originality/valueThis research pioneers in identifying three dimensions of cross-functional coordination based on IPT and examine their distinct impacts on various customer coordination activities. The authors distinguish two customer coordination dimensions and reveal their effects on operational performance. This research contributes to the development of IPT. Additionally, this study provides guidelines for managers to coordinate internal departments and collaborate with external customers to enhance firms’ operational performance.

A sustainable shipping management framework in the marine environment: Institutional pressure, eco-design, and cross-functional perspectives

“…For example, Xu et al (2022), in a study on supply chain management, verified that cross-functional coordination as a critical mediator effectively influences coercive, normative, and imitative pressures on green innovation. In addition, research shows that cross-functional management positively impacts corporate knowledge sharing, organizational innovation, and corporate operational performance (Love and Roper, 2009;Nguyen et al, 2018;Li et al, 2022). Some studies have investigated the mechanism of cross-functional management within a company from different dimensions.…”

“…For example, researchers have combined social capital theory, information theory, and other theories to study cross-functional management and coordination from multiple perspectives involving horizontal and vertical structures, cognition, and relationships, and the impact on knowledge sharing, enterprise innovation, etc. (Nguyen et al, 2018;Li et al, 2022). However, in corporate green development, a company's internal functional departments must formulate coordinated green efforts, such as consistent green strategies and coordinated green processes to achieve green goals (Darnall et al, 2008;Xu et al, 2022).…”

Leadership Styles and Total Quality Management (TQM) Implementation: Competitor Orientation and Inter-Functional Coordination as Mediators

“…The improvement in sharing information, communication, and synchronization amongst the diverse functions was believed to occur via strong inter-functional coordination in all organizations (Tyler & Gnyawali, 2002). The synchronized behaviors and activities of diverse organizational units are decisive in today's passionate market competition (Li et al, 2021). Inter-functional coordination is decisive and effective in reacting to market acumen (Simiyu & Bonuke, 2018).…”

“…Cross-functional coordination stresses collaboration amongst internal units and functions, such as operations, finance, research, and development (R&D), human resources, and marketing departments (Carr et al, 2008). An inter-functional scheme advances information reliability and permits employees to easily access truthful, real-time information (Carr et al, 2008;Li et al, 2021). It can fruitfully lessen redundant work and engender a more cohesive internal atmosphere through enhanced synergy and aligned goals amongst internal departments (Li et al, 2021).…”

“…An inter-functional scheme advances information reliability and permits employees to easily access truthful, real-time information (Carr et al, 2008;Li et al, 2021). It can fruitfully lessen redundant work and engender a more cohesive internal atmosphere through enhanced synergy and aligned goals amongst internal departments (Li et al, 2021). The support and collaboration, participative decision-making, and crossfunctional teams were identified as CSF for the successful execution of TQM (Rougan, 2015;Tomy et al, 2018).…”