Purpose: Cross-functional integration has been an important factor for manufacturing firms' performance outcomes. The study aims to expand previous research by investigating the moderating role of goal-based incentive systems in the relationship between cross-functional integration and competitive performance. Design/methodology/approach: Based on multi-source data from 269 manufacturing firms around the world, regression analysis is used to test the proposed research model. Findings: The authors' findings suggest that cross-functional integration enhances manufacturers' innovation and operational performance. Moreover, cross-functional integration has a stronger impact on operational performance when firms implement a well-designed goal-based incentive system. However, the authors find that the goal-based incentive system does not moderate the relationship between cross-functional integration and innovation performance. Originality/value: The study, by investigating the fit between goal-based incentive systems and cross-functional integration, provides practical insights into the ways that firms apply cross-functional integration and goal-based incentive systems to enhance competitive performance.
|Number of pages
|International Journal of Operations and Production Management
|Published - Feb 4 2022
All Science Journal Classification (ASJC) codes
- General Decision Sciences
- Strategy and Management
- Management of Technology and Innovation