The integration of manufacturing and marketing/sales decisions: impact on organizational performance

Abstract

Abstract Research in the areas of both manufacturing and marketing/sales have advocated the integration of several important interrelated decisions between the two functions (i.e. product development, process development, marketing/sales planning, and manufacturing planning decisions). The process of managing the strategic alignment between a firm’s business strategy, external environment, and the integration of manufacturing and marketing/sales decisions is very complex phenomenon that requires a level of analysis that has not occurred previously. This study examined the moderating effects of business strategy and demand uncertainty on the relationship between the integration of manufacturing and marketing/sales‐based decisions and organizational performance. The study found general support for the proposed model, suggesting that the impact of the integration of manufacturing and marketing/sales decision on organizational performance is moderated by a firm’s business strategy and demand uncertainty.