Characteristics of cross-functional integration processes. Evidence from Brazilian organizations

• Published date: 08 August 2016
• Pages: 570-594
• Date: 08 August 2016
• DOI: https://doi.org/10.1108/IJLM-01-2014-0010
• Author: Marcio Lopes Pimenta,Andrea Lago da Silva,Wendy L Tate
• Subject Matter: Management science & operations,Logistics

Characteristics of cross-

functional integration processes

Evidence from Brazilian organizations

Marcio Lopes Pimenta

Management and Business College,

Federal University of Uberlândia, Uberlândia, Brazil

Andrea Lago da Silva

Department of Industrial Engineering,

Federal University of São Carlos, São Carlos, Brazil, and

Wendy L. Tate

Department of Marketing and Supply Chain Management,

University of Tennessee, Knoxville, Tennessee, USA

Abstract

Purpose –The purpose of this paper is to characterize the cross-functional integration processes

between marketing and logistics, while considering five basic elements: boundary spanning activities,

integration factors, level of integration, formality/informality and impacts of integration.

Design/methodology/approach –After an extensive literature review, five case studies were

performed and in-depth interviews conducted. Both within-case and cross-case analysis was performed

to better understand the cross-functional integration processes between marketing and logistics.

Findings –A characterizationof cross-functionalintegration in theform of a managerial framework was

proposed. This framework presents the elements in a process view, instead of disconnected parts of the

integration processes. The framework and process perspective helps to explain the integration process, the

rolesand impacts of integrationwithin organizations, whileconsidering culturalformality and informality.

Research limitations/implications –Qualitative data collection and analysis methods cannot

achieve amplitude with respect to sampling nor generalize results. In spite of this, the implications

revealed by the propositions may be applied not only to Brazilian companies, but organizations in

other countries as well, due to the high level of heterogeneity of the sample, and the fact that they

represent multinational organizations. Therefore, further research using broad-based survey data

could test the correlations between the elements of cross-functional integration processes.

Practical implications –The identification of the cross-functional integration processes within

organizations can help managers to facilitate the efforts of integration between marketing and

logistics, reducing conflicts and improving business performance.

Originality/value –Case studies focussing specifically on five Brazilian organizations help provide

evidence for an initial definition of cross-functional integration processes by analyzing five key

elements according to their characteristics and respective roles. This research provides a strong

foundation for future broad-based survey research.

Keywords Marketing, Logistics, Cross-functional integration, Processes

Paper type Research paper

Introduction and objectives

In emerging countries like Brazil, the economy and market scenario has changed

substantially over the past 20 years presenting new challenges to companies. Formerly

recognized as primarily an agricultural and raw material supplier, Brazil is now much

The International Journal of

Logistics Management

Vol. 27 No. 2, 2016

pp. 570-594

©Emerald Group Publishing Limited

0957-4093

DOI 10.1108/IJLM-01-2014-0010

Received 16 January 2014

Revised 20 December 2014

27 August 2015

Accepted 27 August 2015

The current issue and full text archive of this journal is available on Emerald Insight at:

www.emeraldinsight.com/0957-4093.htm

The authors are grateful for the financial support granted by FAPESP (São Paulo Research

Foundation) through the processes no. 2009/05160-0 and no. 2011/06008-8.

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IJLM

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more economically diversified therefore attracting investors from many different

industries and countries according to Forbes (2013), in its report “Best Countries For

Business.”The growth and economic changes have influenced consumer habits, driven

extreme growth in industrial and service sectors, created recent and ongoing

improvements of infrastructure and changes in regulatory policies.

According to the report “Emerging markets at the intersection of technology and the

middle class,”from Nielsen (2014), Brazilian consumers have become extremely savvy

in their demands increasing the need for high technology and innovative products in

the region. The changing consumer demands, improved infrastructures and more-

diversified economies have business leaders, in Brazil as well as other locations,

looking for ways to improve performance while meeting customer demand and

delivering value. The context of Brazil provides evidence for business practices that

improve operations in a relatively complex and rapidly growing environment.

One such practice is establishing cross-functionally integrated teams that focus on

developing and implementing a consistent strategic vision. Organizational members

are learning to “march to the beat of the same drummer”which is helping to meet the

ever-changing demands. Cross-functional integration is essential for providing and

processing quality information and developing effective decision-making processes in

the relationship with different agents along the supply chain (Mollenkopf et al., 2000;

Alam et al., 2014). Increased cross-functional integration can help with the

implementation of innovative strategies and organizational change (Turkulainen an d

Ketokivi, 2012).

Marketing and logistics are responsible for critical roles in value creation and

interaction with consumers, demanding joint collaboration internally and across the

supply chain (Ellinger et al., 2000; Daugherty et al., 2009). The integration between

these functions can help maintain an efficient balance between demand and supply and

enhance supply chain performance (Esper et al., 2010). Without effective integration,

marketing managers can lose credibility with customers due to poorly performed

logistics tasks, such as late deliveries, delivery errors and losses (Stank et al., 1999 ).

Alternatively, logisticians often protest about the lack of integration, and insist that the

Marketing function devotes little attention to issues related to other functions (Swink

and Song, 2007). The lack of integration between these two functions creates internal

conflict primarily because of the incongruity of goals and misperceptions of

responsibility.

Existing literature indicates that there are specific activities that generate

integration, and correlates the resulting integration with improved functional and

organizational performance (Kahn, 1996; Stank et al., 1999; Ellinger, 2000; Chimhanzi,

2004; Schramm-Klein and Morschett, 2006; Daugherty et al., 2009; Foerstl et al., 2013;

Fain and Wagner, 2014). However, the existing literature does not characterize how

integration processes generate these positive impacts. “Research on organizational

design needs to be conducted at a more detailed level –such as the project level –to

fully understand the related managerial challenges”(Turkulainen and Ketokivi, 2012,

p. 9). There is a theoretical and managerial gap in understanding the integration

processes, the key elements that integrate functions and the roles that chara cterize

effective cross-functional integration.

The idea of how the process of cross-functional integration occurs represents a

theoretical gap, with limited research on the inner-workings of the actual integration

process. This gap includes the fundamental elements involved in this cross-functional

process. The over-arching purpose of this paper is to better understand the cross-

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