Matching goal-based incentive systems with cross-functional integration to improve operation and innovation performance

Mingu Kang, Um Ki-Hyun, Yongyi Shou, James Jungbae Roh

Research output: Contribution to journalArticlepeer-review

5 Scopus citations

Abstract

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.

Original languageEnglish (US)
Pages (from-to)230-254
Number of pages25
JournalInternational Journal of Operations and Production Management
Volume42
Issue number2
DOIs
StatePublished - Feb 4 2022

All Science Journal Classification (ASJC) codes

  • General Decision Sciences
  • Strategy and Management
  • Management of Technology and Innovation

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