African Journal of Business and Economic Research

(AJBER) Volume 9, Issue 1, 2014

Pp 29-54

Integration of Functional Areas of Business:

A Research Agenda

Promise Abdullah Opute

Senior Consultant,GPROM Academic and Management Solutions
Rotheweg 333154 Salzkotten, Germany.
E-mail: promise.opute@gpromsolutions.org

Nnamdi O. Madichie
School of Graduate Studies
Canadian University of Dubai
Email: nnamdi@cud.ac.ae

Abstract:

Since the early 1980's relationship marketing theorists have

increasingly underlined the need to ensure harmonious
interfunctional relationship between marketing and other functional
areas, in order to profitably satisfy the customer. A major gap in the
literature, however, is the lack of understanding of interfunctional
relationship in the non-Western context. To contribute to addressing
this imbalance in the literature, this paper aims primarily to inspire
researches that illuminate the non-Western context, which will be
characterised by cultural fabrics and trading patterns that contrast the
Western norms. The methodological approach in this paper is two
folds. First, review of literature is undertaken to identify the core
themes (and variables) and the debates in the existing literature.
Second, a template is proposed to guide knowledge development in
the area.

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 Integration of Functional Areas of …

Keywords: Integration dimensions and antecedents, cultural

diversity, managerial intervention mechanisms, interfunctional
conflict, conflict management, Less Developed Countries.

Introduction

For over 40 years, marketing scholars and practitioners have

continuously proclaimed that a business that increases its market
orientation will improve its market performance (see, e.g. Kotler,
1984; Webster, 1988; Narver and Slater, 1990; Kotler et al., 2006; Le
Meunieur and Piercy, 2007). According to domain gurus (Narver and
Slater, 1990), market orientation “is the very heart of modern
marketing management and strategy”, judging by how much
attention practitioners and academicians have given to this topic in
speeches, textbooks and scholarly papers (p.20).
Theoretical developments in the relationship marketing field have
increasingly underlined this centrality: relationship marketing
scholars and practitioners are congruently identifying human capital
management as a strategy for profitably satisfying customers, a
contingency approach that resonates with management viewpoint
that team effort is a sine qua non for quality performance (Drucker,
1909; Margerison et al., 1995). Within this contingency strategy,
researchers contend that organisations would profitably satisfy their
customers if they ensure harmonised integration between functional
departments.
Inspired by this synergistic logic, researchers from diverse
disciplines have invested substantial effort into exploring marketing
department's (hereinafter marketing) interface with other functional
areas (e.g. Clark and Fujimoto, 1991; Souder, 1987; Urban and Hauser,
1993; Hill, 1994; Kotler et al., 2006; LeMeunier-FitzHugh and Piercy,
2007; Opute et al., 2013; inter alia) since the early 1980s. Three interface
domains have featured predominantly in the literature, namely
marketing-R&D interface (e.g. Parry and Song, 1993; Griffin and
Hauser, 1996; Moenaert and Souder, 1990; Moenaert et al., 1994; Song
and Thieme, 2006; Leenders and Wierenga, 2002; Song et al., 1996;
Song and Parry, 1993; Xie et al., 2003), marketing-manufacturing (e.g.

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Calantone et al., 2002; Ettlie, 1997; Crittenden et al., 1993; Parker, 1994;
Gupta and Wilemon, 1988; Xie et al., 2003; Kahn and Mentzer, 1998;
Griffin and Hauser, 1992) and marketing-Sales (e.g. Kotler et al., 2006;
Le Meunier-FitzHugh and Piercy, 2007a and b; Le Meunier-FitzHugh
and Lane, 2009; Homburg et al., 2008;Dawes and Massey, 2005;
Massey and Dawes, 2007; Rouzies et al., 2005). In recent
developments, researchers are also recognising the interface between
marketing and accounting as vital to corporate success by
illuminating their working relationship (e.g. Barker, 2008; Opute et al.,
2013; Opute, 2014[April]).
A review of 37selected articles published in academic journals (see
Table 1) identified a major research void: all studies were located in
developed countries. A direct consequence of this development is a
dearth in the literature about less developed countries context. This
paper aims therefore to galvanise research efforts towards eliminating
this imbalance in the literature. Exploring the less developed
countries context is essential, considering that (1) national culture
influences the way we behave (Xie et al., 2003; Hofstede, 1994) and (2)
different trading patterns exist between countries such as marketing
philosophy and way of conducting business (Lindgreen, 2001;
Rasmussen, 1998).
Like their counterparts in the developed world, organisations in
the less developed countries need to pay attention to managing their
interfunctional relationships. Failure to align their functional areas
would adversely affect their corporate performance. Commenting on
the impact of this failure, Kotler et al. (2006), who combine research
and consulting experience, observed that the functional “groups
stumble (and the organisation suffer) because they were out of sync. ”
(p.3). Therefore, illuminating this perspective will enable practitioners
understand better how to strategically align and optimize the gains of
their inter-functional relationships. To achieve the above specified
aim, two steps are taken in this paper. First, a review of literature is
undertaken to identify the themes, and the central theoretical
foundations that featured in the existing literature. Also, the core

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 Integration of Functional Areas of …

debates in the literature are underlined. Subsequently, directions for

future research are pinpointed.
Based on the evidence in the reviewed literature (see Table 1), this
paper observes that five core themes have been identified by
researchers as central to the understanding of interfunctional
relationship: nature of integration, antecedents of integration, task
connectivity of integration, conflict in interfunctional relationships
and performance impact of interfunctional integration. Following this
precedence, the theoretical premise of this paper covers the nature
and antecedents of interfunctional integration and interfunctional
relationship conflict and management, and these realms are
discussed, explaining the synergistic logic (performance) and the
relevance of the task connectivity foundation in the entire integration
dynamics.

Table 1: Selected Studies for Conceptual Framework Development

Studies Interfunctional National Conceptual Framework (and/or

Interface Context empirical comment)
Parry and R&D and Japan This study measured the perceived need
Song (1993) Marketing for, and achieved level of sales-
marketing integration in the New
Product Development process.
Antecedent factors explored include
management support of integration, risk
taking behaviour, joint reward,
formalization, centralization, and
participation
Le Meunier- Marketing and UK ‘Collaboration’view of integration. This
FitzHugh and Sales study explored the antecedents and
Piercy (2007) implications of collaboration between
marketing and sales on business
performance. Three categories of
antecedents were captured: integrators,
facilitators, and management attitudes to
coordination.

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Promise, Nnamdi /AJBER Volume 9, Issue 1, 2014, Pp 29-54

Table 1: Continued (Selected Studies for Conceptual Framework Development)

Le Meunier- Marketing and UK ‘Collaboration’view of integration. The
FitzHugh and Sales study explored the influence of
Lane (2009) collaboration between marketing and
sales on market orientation and business
performance. Also explored the influence
of market intelligence systems and
management attitude on market
orientation and collaboration.
Kotler, Marketing and Several This study explored economic and
Rackham and Sales Developed cultural driven conflicts in the
Krishnaswamy Contexts Marketing-Sales Interface. Suggested
(2006) tools for managing their conflict:
encourage disciplined communication,
create joint assignments and rotate jobs,
appoint a liaison from marketing to work
with sales force, co-locate marketers and
salespeople, and improve sales force
feedback.
Song, Dyer R&D and Develope This study explored the influence of
and Thieme Marketing d context integration, accommodating,
(2006) compromising, forcing, and avoiding
conflict-handling strategies on
constructive and destructive conflict
between R&D and Marketing personnel
in the innovation process.
Griffin and Marketing and Conceptual This study conceptualised composite
Hauser (1996) R&D integration. This study reviewed
literature and proposed a causal
framework to guide future research on
interfunctional integration. This study
contends that R&D-Marketing
integration would positively impact on
performance.
Moenaert and R&D and Belgium This study explored the extra-functional
Souder (1990) Marketing information exchange between R&D and
Marketing in the innovation process. The
study argues that the exchange level
depends on centralisation, formalisation,
climate and type of project structure.
Moenaert, R&D and Belgium This study explored communication
Deschoolmeester Marketing flows between R&D and Marketing
De Meyer and
during the product innovation process,
Souder (1994)
under conditions involving
formalisation, decentralisation, role
flexibility and positive interfunctional
climate.

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 Integration of Functional Areas of …

Table 1: Continued (Selected Studies for Conceptual Framework Development)

Calantone, Marketing and USA This study explored the nature of the
Dröge and Manufacturing relationships characterizing the
Vickery (2002) marketing-manufacturing interface in
the new product development (NPD).
Four constructs were examined: (1)
marketing's knowledge of manufacturing;
(2) manufacturing's evaluation of
marketing communication; (3) marketing-
manufacturing integration; and (4)
marketing-manufacturing relationship
quality.
Homburg, Marketing and 337 firms This study developed a model that
Jensen and Sales in the integrates a broad range of conceptual
Krohmer European domains including information sharing,
(2008) Union structural linkages, power, orientations
and knowledge of marketing and sales.
Mollenkopf, Marketing and New The study measured the influence of
Gibson and Logistics Zealand strategic, middle-management, inter-
Ozanne (2000) departmental and organisational factors
on marketing-logistics integration
(Dissemination of information and
coordination of activities).
Krohmer, Conceptual US and This study examines the link between
Homburg and Germany cross-functional dispersion of influence
Workmann on marketing activities and performance
(2002) at the SBU, as well as market dynamisms
which may moderate the strength of this
relationship
Leenders and Marketing and Europe, Explored integrating mechanisms
Wierenga R&D US and (physical proximity, personnel rotation,
(2002) Japan informal social systems, organisational
structure, and incentives and rewards) of
R&D-Marketing integration and impact
on New Product Performance.
Song and R&D and US, ‘Involvement’ lens of integration. Cross-
Thieme (2006) Marketing Japan national examination of R&D-Marketing
and interface in the product innovation
China process.
Chimhanzi Marketing and HR UK The study examined the antecedents
(2004) (Senior management support, Joint
reward system and conflict) of effective
Marketing/HR 'Interactions' (integration)
and impact on marketing strategy
implementation.

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Promise, Nnamdi /AJBER Volume 9, Issue 1, 2014, Pp 29-54

Table 1: Continued (Selected Studies for Conceptual Framework Development)

Kahn and Marketing, Developed Conceptualised‘interaction’ and

Mentzer Manufacturing and context ‘collaboration’ dimensions of integration.
(1998) R&D This study contends that collaboration
distinguishes successful performance
and promotes marketing's satisfaction in
working with other departments.
Kahn (1996) Marketing, Develope Integration conceptualised integration as
Manufacturing and d context ‘interaction’ and ‘collaboration’, and
R&D gauged their influence on product
development performance and product
management (post-launch) performance.
Hyman and Marketing and Editorial A special Issue Editorial of the Journal of
Mathur (2005 Accounting Academy of Marketing Science on the
Marketing-Finance interface. It
previewed the articles in the issue,
surveyed early research on, suggests
scholarly foundations of, and
recommends future research directions
for this interface.
Kahn and Marketing, Develope Explored the relationship (direct and
McDonough Manufacturing and d context moderating) between co-location,
III (1997) R&D integration (‘interaction’ and
‘collaboration’), performance and
satisfaction.
Gupta, Raj R&D and Concept Compositeintegration: ‘information
and Wilemon Marketing ual sharing’ and ‘involvement’. This
(1986) conceptual work examined the need for,
and level of achieved integration, and
gauged the influence of senior
management support and sociocultural
differences between R&D and Marketing
in the innovation process.
De Ruyter and Marketing and Netherla This study explores how resource
Wetzels (2000) Finance nds dependency, procedural fairness and
interfunctional rivalry exert an influence
on the relational attitude of marketing
and finance managers.
Barker (2008) Marketing and Canada 'Information Sharing' view of
Accounting integration. This study explored the
nature of Information sharing, rewards
and performance measures in the
Marketing and Accounting interface.
Song, Neeley R&D/ Marketing US The study explored the quantity and
and Zhao quality of information exchange and
(1996) involvement during the new product
development process.

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 Integration of Functional Areas of …

Table 1: Continued (Selected Studies for Conceptual Framework Development)

Song and R&D and Japan This study explored the influence of
Parry (1993) Marketing R&D-Marketing integration on new
product success. It also gauged how their
integration is shaped by the quality of
R&D-Marketing relations, organisational
structure, and the attitude and actions of
Japanese senior management.
Song, Thieme R&D, Marketing US Cross-functional involvement lens of
and Xie (1998) and Manufacturing integration. This study explored the level
of cross-functional involvement between
R&D, Marketing and Manufacturing
during five stages of the product
development process - market
opportunity analysis, planning,
development, pretesting, and launch.
Souder (1981) R&D and US Explored R&D-Marketing disharmony
Marketing factors and influence on new products
failure.
Xie, Song and Multiple interface: US, UK. A five countries analysis of antecedents
Stringfellow R&D- Marketing - China, and consequences of goal incongruity on
(2003) Manufacturing Japan, New Product Development. Composite
and integration view: Harmony of Cross-
Hong functional relationship, Quality of Cross-
Kong functional information and the level of
Cross-functional involvement. Also
explored the effect of managerially
controllable variables, as well as other
variables, on goal congruity.
Souder and R&D and Developed This study explored the effect of
Chakrabarti Marketing context organisational factors which characterise
(1978) the interface between R&D and
Marketing in the innovation process.
Maltz (1997) Marketing and Conceptual Reviewed literature and proposed a
others framework of integrating mechanisms
for improving cooperation between
marketing and other functions.
Ruekert and Marketing and Concept. + ‘Interaction’view of Integration. This
Walker (1987) others Empirical paper examines how and why marketing
(Western)
personnel interact with personnel in
other functional areas in planning,
implementing and evaluating
marketing's activities.

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Table 1: Continued (Selected Studies for Conceptual Framework Development)

Song, Xie and Marketing, Japan, This tests a cross-cultural conceptual
Dyer (2000) Manufacturing and US, model of the organisational-based
R&D Hong antecedents and consequences of
Kong, marketing managers' conflict-handling
and UK behaviours during the New Product
Development Process.
Opute (2009) Marketing and UK Explored the dimensions, antecedents
Accounting and strategic marketing evidence of
Accounting-Marketing integration
(composite integration).
Garrett, R&D and Singapor Integration conceptualized as interaction.
Buisson and Marketing e and National culture is a variable that
Yap (2006 New explains differences in the use of
Zealand integration mechanisms, hence the use of
formalisation, centralisation, role
flexibility an interfunctional climate
mechanisms differs in Western and non-
Western contexts.
Opute, Marketing and UK Explored cultural diversity and
Dedoussis and Accounting managerial intervention mechanism that
Tzokas (2013) influence various dimensions of
Accounting-Marketing integration
(information sharing, unified effort and
involvement)
Opute (2014) Marketing and UK Explored the nature of conflict, and how
Accounting Cross-Functional Bridge tool is used to
manage conflict and ensure team
psychological well-being and improved
organisational performance in the
accounting-marketing dyad.
Massey and Marketing and Australia The study draws on ‘interaction’ lens as
Dawes (2007) Sales its main theoretical perspective. The
study explored the antecedents and
consequences of functional and
dysfunctional conflict between
marketing and sales managers.
Kahn (2001) Marketing, Develope This study explores the link between
Manufacturing and d context market orientation, interdepartmental
R&D integration (interaction and
collaboration) and product development
performance.
Source: Author. Details collated from referenced scholars.

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 Integration of Functional Areas of …

Inter-functional Integration: The Conceptual Views

The review of literature shows that integration between marketing

and other functional areas has three bodies of literature guiding its
definition, namely ‘interaction’, ‘collaboration’ .and ‘composite
integration’. The ‘interaction’ perspective views integration as
characterised by formal communication flows and regular meetings
between the functional areas (e.g. Griffin and Hauser, 1992; Moenaert
et al., 1994; Urban and Hauser, 1993; Ruekert and Walker, 1987;
Garrett et al., 2006). Some literature ascribes to the ‘Collaboration’
perspective. In this lens scholars conceptualise integration to reflect
collective goals, common vision, mutual understanding and
teamwork (e.g. Kahn, 1996; Griffin and Hauser, 1996; Le Meunier-
FitzHugh and Piercy, 2007a; Le Meunier-FitzHugh and Piercy, 2007b;
Le Meunier-FitzHugh et al., 2010).
Another stream of literature conceptualises ‘composite
integration’ which subsumes ‘interaction’ and ‘collaboration’ (e.g.
Kahn and Mentzer, 1998; Xie et al., 2003; Parry and Song, 1993; Song
and Thieme, 2006; Opute, 2008; Opute et al., 2013). A central
synergistic drive behind this perspective is that organisations that
leverage on these dual inputs would corporately perform better than
those that focus mainly on either of interaction of collaboration.
Despite this synergistic drive congruency, evidence from reviewed
literature shows that scholars are still diverse in their use of terms to
conceptualise composite integration. While Kahn (1996) and Kahn
and Mentzer (1998), the first major conceptualisation of composite
integration, used ‘interaction’ and ‘collaboration’ as dimensions, other
scholars have observed ‘information sharing’ and ‘involvement’
dimensions (e.g. Parry and Song, 1993, Song and Thieme, 2006, Song
and Parry, 1993; Gupta et al., 1986), interestingly all studies explored
the R&D-Marketing interface. Xie et al. (2003) and Song et al. (2000),
two studies that explored R&D-Marketing, as well as R&D-
Manufacturing interfaces, conceptualised composite integration to
include ‘harmony of Cross-functional relationship’, ‘Quality of Cross-
functional information’, and ‘level of Cross-functional involvement’.
Pioneering contingency perspective insights on the accounting-

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Promise, Nnamdi /AJBER Volume 9, Issue 1, 2014, Pp 29-54

marketing interface show similarities with the R&D-Marketing

interface conceptualisation. For example, Opute (2008) and Opute et
al. (2013) conceptualise ‘information sharing’, ‘unified effort’, and
‘involvement’. Interestingly too, studies on the Marketing-Sales
interface have prioritised the ‘collaboration’ perspective (e.g.
Cespedes, 1993; Dewsnap and Jobber, 2000; Rouzies et al., 2005; Kotler
et al., 2006; Le Meunier-FitzHugh and Piercy, 2007a, Le Meunier-
FitzHugh and Piercy, 2007b; Le Meunier-FitzHugh et al., 2010).

Factors influencing the degree of Inter-functional Integration

Commentaries about interfunctional relationships indicate that while

it is important for functional areas to integrate for organisational
success, it is not always achieved. For example, the marketing-sales
relationship is reported to be far from harmonious (Montgomery and
Webster, 1997; see also Kotler et al., 2006). In their study, Dewsnap
and Jobber (2000) commented thus: “the marketing-sales relationship,
whilst strongly interdependent, is reported as neither collaborative nor
harmonious” (p. 109). Beyond the marketing-sales interface, other
scholars suggest a similar trend in the accounting-marketing interface
(e.g. Opute et al., 2013). The “effective management of functional
interfaces has proven challenging for practitioners” (Calantone et al.,
2002, p.273), therefore more research is needed to help practitioners
understand how to best align their interfunctional relationships.
For that target of strategically aligning their interfunctional
relationships, organisations must, additional to ensuring a holistic
integration conceptualisation, enforce mechanisms for facilitating
harmonious interfunctional integration between marketing and other
departments. To define a template for guiding future research, a
review of literature is undertaken next to identify the predicting
factors of marketing's integration with other departments. As Garret
et al. (2006) point out, different integration mechanisms have been
proposed in the literature. While the approach and mix of variables
used in past studies have differed, justified on the motivation for the
studies, scholars are generally congruent in their views of what the
core variables are. Drawing on this evidence, this paper categorises

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 Integration of Functional Areas of …

and reviews literature on two clusters of integration mechanisms,

namely cultural differences between departments and management
variables. Conflict has featured repeatedly in recent literature as a
norm in interfunctional relationship. Therefore, we also review
literature on interfunctional relationship conflict and management.

Cultural Differences between Departments

Different professions have different cultures (Wilson, 2000).

Combining broad inter functional relationship literature, departmental
differences or “Though World Differences” (e.g. Griffin and Hauser,
1996; Maltz, 1997; Homburg and Jensen, 2007) are core factors that
drive conflict between functional areas. Three core fabrics are
identified in the literature, namely cultural, perception, and goal
orientation differences (e.g. Kotler et al., 2006; Le Meunier-FitzHugh
and Piercy, 2007a; Opute et al., 2013).
As our literature review shows, the marketing culture differs from
that of accounting and R&D. Similarly, these functional areas are very
diverse in their ways of thinking. A third diversity feature captured in
the literature relates to the differences in the understanding of
organisational objectives. To pinpoint specific interface evidence, it is
claimed that marketing is product and long-term focused, while sales
is customer and short-term focused (Cespedes, 1995; Rouzies et al.,
2005; Kotler et al., 2006; Homburg and Jensen, 2007) and also that
marketing lives in an “ivory tower”, while sales is lauded for being
market wise (e.g. Carpenter, 1992; Donath, 2004; Homburg et al.,
2008). Evidence from Accounting-marketing interface support this
diversity foundation: Wilson (2000) notes that accountants'
introspection differs from that of marketers in many ways, while
Opute et al. (2013) and Opute (2014) observe that accounting and
marketing’s perception of each other depicts stereotypes in their
relationship.
If these diversity features characterise marketing's relationship
with other functional areas, it would seem logical to expect that these
would impede their ability to achieve harmonious interdependence
relationship, given employee affective behaviour viewpoint and goal

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incongruity (e.g. Xie et al., 2003) and teamworking (e.g. Greer et al.,
2008; Medina et al., 2005) association. Existing literature underscores
the validity of this expectation. For example, R&D-Marketing
researchers found that higher levels of cultural differences between
both departments associate negatively with their achieved
integration, a contention that finds support in the marketing-sales
interface (Kotler et al., 2006). On their part, Opute et al. (2013) report
that in cases where accounting and marketing exhibit considerable
cultural differences the degree of integration is low. This is the case
both for integration summation and the degree of unified effort
dimension.
Management Variables

Extant literature has underlined management variables as central

predictors of interfunctional integration quality and outcome.
‘Management variables’ is conceptualised in this paper to include all
factors where top management plays a reasonable role in its design,
namely policies, structural factors, and social capital related factors.
We conceptualise this lens of ‘management variables’ in accordance
with the foundation that “management attitudes towards
coordination will influence both the ‘integrators’ and ‘facilitators’ of
integration [1], as well as directly affecting integration” between
interfunctional areas (Le Meunier-FitzHugh and Piercy, 2007: 949).

Top Management Support

Management theorists maintain that management plays a major role

in shaping marketing's integration with other functional areas (e.g. Le
Meunier-FitzHugh and Lane, 2009; Parry and Song, 1993; Xie et al.,
2003; Opute et al., 2013). Within that logic, scholars contend that the
policies initiated by top management critically influence the extent to
which marketing and other functional areas integrate. Therefore, if
top management enforces policies that support interfunctional
integration, this will motivate focus and purpose in the integration
activities within the organisation. Overall, the evidence from
reviewed literature underscore the importance of top management

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 Integration of Functional Areas of …

support to achieved integration: in organisations with top

management policies that support integration higher levels of
conceptualised integration have been achieved between marketing
and R&D (e.g. Parry and Song, 1993; Song and Thieme, 2006; Xie et al.,
2003; Gupta et al., 1986), sales (e.g. Le Meunier-FitzHugh and Piercy,
2007; Dewsnap and Jobber, 2002), HR (e.g. Chimhanzi, 2004),
accounting (e.g. Opute et al., 2013) and logistics (Mollenkopf et al.,
2000). As the organisation instrument for coordinating the internal
mechanisms, the management plays a major role in defining the
structural dynamics and decision making process in the organisation.
Interfunctional relationship scholars have argued that
formalised/deformalized organisational structure and centralised/de-
centralised decision making patterns would influence the extent of
achieved integration between marketing and other functional areas.
Centralisation/Decentralisation: reviewed literature contends
that the extent of marketing's integration with other functional areas
is a factor of the extent to which organisations centralise or
decentralise their decision making process (e.g. Parry and Song, 1993;
Moenaert et al., 1994; Souder and Song, 1998; Gupta et al., 1986;
Dewsnap and Jobber, 2004; Song and Thieme, 2006; Opute, 2009).
While centralisation or its opposite decentralisation has received
reasonable empirical attention concerning association to marketing's
integration with other functional areas, existing insights have been
largely contrasting. For example, Gupta et al. (1986) suggest that
higher integration companies show higher levels of decentralised
decision making, while Parry and Song (1993) did not find any
support for their proposition that decentralisation would enable
R&D-Marketing integration. Subsequent researches have added to the
opaqueness of this variable: sales-marketing insight (Dewsnap and
Jobber, 2004) found a non-significant correlation of decentralisation,
while marketing-logistics interface literature (Mollenkopf et al., 2000)
suggests a non-significant association of centralisation on achieved
integration. Finally, accounting-marketing literature (Opute, 2009)
reports a non-significant and contrasting (directional influence)
coefficient for integration summation, the ‘Information Sharing’ and

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‘Involvement’ integration dimensions, as well as for all four stages of

strategic marketing process integration. Opute (2009) also reports a
significant positive association of decentralisation on the ‘Unified
Effort’ dimension of integration.
The second organisational structure variable that has been
underlined as a central variable in the exploration of interfunctional
integration antecedents is ‘formalisation’. Building on evidence in the
existing literature, we view formalisation as the extent to which
integration between marketing and other functional areas is
structured by guidelines. In the examination of the influence of this
variable on interfunctional integration, researchers have identified
important structural guidelines to include documentation of duties,
authority, and accountability of personnel in policies, procedures and
job description; availability of written procedures and guidelines for
most of the work situation; and the use of strict formal
communication channels (e.g. Parry and Song, 1993; Song and Parry,
1993; Mollekopf et al., 2000; Opute et al., 2013). Notably, though
substantial effort has been made to illuminate this variable and
integration influence, the evidence still remains blurred. While
Dewsnap and Jobber observe a no significance evidence in the sales-
marketing interface, Parry and Song (1993) disagree that
formalisation hinders achieved R&D-Marketing integration. A
contrast to Parry and Song (1993) is found in Song and Parry (1993)
and Mollenkopf et al. (2000). More intriguing evidence is found in the
latter study where the marketing and logistics samples reflect
negative and positive associations respectively. Opute et al. (2013)
report a significant positive association of formalisation on achieved
integration summation, but not on the three integration dimensions of
information sharing, unified effort, and involvement. The Social
capital literature contends that if organisations initiate appropriate
managerial measures that galvanise goodwill between members of
integrating departments, this will impact positively on their
integration and yield. Within this literature, the core measures, which
have been referred to as ‘managerially controllable variables’ (Xie et
al., 2003), ‘managerial intervention mechanisms’ (Opute et al., 2013)

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 Integration of Functional Areas of …

and ‘facilitators’ (Le Meunier-FitzHugh and Piercy, 2007), include

joint reward, role flexibility, and physical proximity.
Joint Reward: Substantial literature supports the importance of
joint reward system to interfunctional integration (e.g. Parry and
Song, 1993; Song et al., 1997; Dewsnap and Jobber, 2004; Mollenkopf et
al., 2000; Chimhanzi, 2004; Le Meunier-FitzHugh and Piercy, 2007).
Grounded on the procedural justice foundation (Dooms and Van
Oijen, 2005), scholars indicates that when organisation use fairness
logic to reward personnel, this will impact positively on the
willingness of personnel from different functional areas to integrate.
This total instead of functional reward approach give functions
economic incentives to achieve firm-level goals (Xie et al., 2003). There
is however still much debate about how joint reward will shape
marketing’s integration with other functional areas: joint reward is
positively (e.g. Leenders and Wierenga, 2002; Parry and Song, 1993),
negatively (e.g. Parry and Song, 1993) and insignificantly (e.g.
Chimhanzi, 2004; Dewsnap and Jobber, 2004) associated to the
achieved degree of integration. In more recent literature, Le Meunier-
FitzHugh and Piercy (2007) report a limited support for the
proposition that joint reward of marketing and sales would improve
their collaboration. Opute (2009) suggests that joint reward of
accounting and marketing would improve integration summation
and ‘Unified Effort’ integration dimension, but does not have a
significant effect on ‘Information Sharing’ and ‘Involvement’
integration dimensions.
Role Flexibility: This mechanism, the movement of personnel
beyond their functional tasks, is known to impact on the degree of
marketing's integration with other functional areas (e.g. Parry and
Song, 1993; Moenaert and Souder, 1990; Moenaert et al., 1994;
Leenders and Wierenga, 2002; Opute et al., 2013). Given the evidence
that lack of technical cross-functional knowledge is a central problem
in interfunctional relationship (e.g. Parry and Song, 1993; Opute,
2009) such cross-functional role exchange would enable better cross-
functional knowledge understanding (Jaspers and Van den Ende,
2006). Logically therefore, past studies have argued that role

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Promise, Nnamdi /AJBER Volume 9, Issue 1, 2014, Pp 29-54

flexibility positively impacts on marketing’s integration with other

functional areas (e.g. Griffin and Hauser, 1996; Souder et al., 1997; Xie
et al., 2003; Le Meunier-FitzHugh and Piercy, 2007). Scholars have
however underlined the need to apply task connectivity logic to the
use of role flexibility: if blindly enforced, role flexibility can be
counter-productive in the R&D-Marketing interface (Garrett et al.,
2006, Singapore sample) and Accounting-Marketing interface (Opute
et al., 2013).
Physical Proximity: According to social capital logic, another tool
for enhancing goodwill and understanding amongst team members is
by ensuring physical proximity between them. In their publication,
“Distance matters: physical space and social impact”, Latane et al.
(1995) show that the social impact of one person on another
corresponds to the inverse square of the distance between them.
Inspired by this social capital logic, interfunctional relationship
scholars are giving more attention to the influence physical nearness
of functional areas would have on their ability to integrate (e.g. Kahn
and McDonough III, 1997; Dewsnap and Jobber, 2004; Xie et al., 2003;
Opute et al., 2013). Empirical insights suggest that physical proximity
will promote interaction (e.g. Kahn and McDonough III, 1997;
Dewsnap and Jobber, 2004; Xie et al., 2003; Jaspers and Van den Ende,
2006) and enables the chances for regular informal interactions (e.g.
Maltz and Kohli, 1996; de Ruyter and Wetzels, 2000). Pioneering
accounting-marketing literature (Opute et al., 2013) found a positive
significant association of physical proximity on integration
summation and ‘Unified Effort’ integration dimension, but not on the
‘Information Sharing’ and ‘Involvement’ integration dimensions.

Conflict in Interfunctional Relationship

“Achieving effective integration is problematic with a propensity for

disharmony between functional areas [2] argued by some to be the
norm rather than the exception” (Moenaert and Souder, 1990, cited in
Garrett et al., 2006: 294). Following employee affective behaviour
foundation (e.g. Greer et al., 2008, Medina et al., 2005; Pluut and
Curseu, 2012) such a propensity is to be expected. Within this

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literature therefore, scholars are increasingly emphasizing the

existence of conflict in marketing's relationship with other functional
areas as well as the need to illuminate this existence and management
strategies. For example, in the R&D-Marketing (see, Song et al., 2006),
marketing-sales (see, Kotler et al., 2006; Massey and Dawes, 2007; Le
Meunier-FitzHugh and Piercy, 2007) and marketing-accounting (see,
Opute et al., 2013; Opute, 2014) interfaces.
In describing the conflict intensity between marketing and sales
departments, Kotler et al. (2006: 3) comment that “in many companies,
sales force and marketers feud like Capulets and Montagues - with
disastrous results” (see also, Le Meunier-FitzHugh and Piercy, 2007;
Rouzies et al., 2005), a contention that lends support to prior
accounting-marketing perspective that laments that accounting and
marketing are non-integrated as “cats and dogs” (Field and Gabhart,
1981). More recent developments in the accounting-marketing
interface underscore major relationship conflict. For example, Hyman
and Mathur (2005) comment that accounting and marketing are apart
while Opute (2014) reports that accounting and marketing are like
enemies. For interdependence relationship between marketing and
other functional areas to be effective and contribute to the goal of
profitably satisfying customers, organisations must pay attention to
managing the interface conflicts. A number of strategies have been
suggested for handling interpersonal conflict (e.g. Xie et al., 1998;
Song et al., 2000; Song et al., 2006, Tjosvold, 2008): cooperative,
integrating and accommodating [for detailed insight, see Song et al.,
2006]. Reviewed literature shows that the fit of these strategies will
depend on the nature of conflict (e.g. Xie et al., 1998; Song et al., 2006;
Pluut and Curseu, 2012), a logic that underlines the pertinence of
conflict analysis to effective conflict management (Opute, 2009;
Opute, 2014).
In their Harvard Business Review publication on “ending the war
between Sales and Marketing”, Kotler et al. (2006) asked the question,
“Why can't they just get along?”. In their response, they suggest two
sources of friction between sales and marketing to be economic and
cultural. The cultural fabric of the sales-marketing conflict is more

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Promise, Nnamdi /AJBER Volume 9, Issue 1, 2014, Pp 29-54

entrenched than the economic, they commented further. Accounting-

marketing interface literature supports this friction impact of cultural
diversity between functions (e.g. Opute et al., 2013; Opute, 2014).
Indeed, these studies even contend that these cultural diversity
features contribute to anti-boundary spanning behaviour in the
accounting-marketing interface.
While the existence of conflict in interfunctional relationship has
been repeatedly mentioned in the literature, very little research effort
has been made to empirically illuminate its management, despite the
obvious pertinence : management of interfunctional conflict is
essential to ensure that appropriate levels of integration (Song et al.,
2000; Xie et al., 1998). There is need to illuminate the management
intervention mechanisms - like conflict handling behaviour (Olson et
al., 2001) towards achieving effective integration and improved
performance. In their study, Song et al. (2000) report that managers in
both Eastern and Western countries should decrease avoiding and
increase collaborating conflict behaviours to promote successful
interfunctional integration.
Another study (Xie et al., 1998) that comparatively explored
Eastern (Japan and Hong Kong) and Western (US and UK) found that
while the five conflict resolution strategies (avoidance,
accommodation, competition, collaboration and compromise) may be
relevant in managing interfunctional conflict in both contexts, the
extent of fit is conditioned by the cultural setting of the country.
Similar interface study (Song et al., 2006) offers insight reinforce
context-bound nature of conflict: integrating and accommodating
conflict-handling strategies associate positively with constructive
conflict, while forcing and avoiding conflict-handling strategies are
positively associated with destructive conflict. Finally, accounting-
marketing interface literature (Opute, 2009; Opute, 2014) indicates the
use of managerial intervention tool (Cross-Functional Bridge - CFB) to
manage conflict between accounting and marketing, a tool that
leverages on cross-functional knowledge, as well as knowledge from
conflict analysis to achieve team performance, and enhanced

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 Integration of Functional Areas of …

organisational performance, compromising, forcing and avoiding

conflict-handling strategies.

Conclusions, Implications & Future Research Directions

While knowledge about interfunctional relationship has evolved

reasonably over the last four decades, a lot of important questions still
remain unanswered, especially regarding the less developed context.
Management practices, contingency dynamics and economic
composition for developed counterparts may not effectively be
relevant in less developed context where the geographical platform is
characterised by different cultural fabrics and dynamism (Garrett et
al., 2006; Opute et al., 2013). The less developed space offers several
avenues for expanding interfunctional relationship knowledge.
Critical questions to be addressed in this regard include: (1) What
organisational factors affect integration between functional areas of
business? (2) What distinguishes a good from a sub-optimal
functional relationship in business? And (3) How does interfunctional
integration affect business performance.
Theoretically speaking, interdependence is a common feature of
interfunctional relationship (Griffin and Hauser, 1996; Maltz, 1997)
and integration relevance and performance impact are task-
connectivity contingent (e.g. Moenart et al., 1994; Opute, 2009). This
point is underlined by Garrett et al. (2006: 294) who comment that:
“the importance of integration increases as the business environment
becomes more dynamic with firms facing intensifying pressure to find a
competitive edge.” Relevant questions that need to be asked in this
connection are: (1) What are the core integration priorities in
marketing’s interface with other functional areas? (2) How does
interface activity shape the integration dimension relevance,
antecedents, and influence on performance success. Following
Homburg et al. (2008), we also pose the question, (3) What are the
variations in marketing’s interface with other functional areas across
businesses and industries? Finally, and in the light of the above the
question arises, (4) how does national culture condition this
influence?

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Promise, Nnamdi /AJBER Volume 9, Issue 1, 2014, Pp 29-54

There is a growing literature that emphasises the existence and

need to manage conflict in interfunctional relationship, for example
in the R&D-Marketing Interface (e.g. Xie et al., 1998; Song et al., 2006;
Souder, 1981), Marketing-Sales (e.g. Kotler et al., 2006; Le Meunier-
FitzHugh and Piercy, 2007b; Le Meunier-FitzHugh et al., 2010;
Rouzies et al., 2005; Massey and Dawes, 2007) and Accounting-
Marketing (e.g. Opute, 2009; Opute, 2014). Researches that highlight
the less developed context nature of interfunctional relationship
conflict nature, their antecedents and consequences, and how
organisations achieve a fit between conflict management strategies
and conflict style. Furthermore in this fit connection, researches
should explain how ways to manage such conflict maybe affected by
other complex variables, for example, if companies and their
personnel span multiple cultures (Song et al., 2000). Future studies
that tackle these questions head-on would help illuminate the less
developed countries context of interfunctional relationship, insights
that would be of considerable benefit to academics and practitioners.

Notes

[1] Le Meunier-FitzHugh & Piercy, 2007 used the term “Collaboration.”

[2] Whereas the “R&D and marketing functions” was used in Garrett et al.,
(2006), the “functional areas” ascribed to in this paper, were introduced by
the authors.

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