DEFINITION

4.1. Manufacturing and marketing/sales decision integration

Integration has been characterized in terms of: collaboration (Lawrence and Lorsch, 1967), cohesiveness (O’Reilly
et al., 1989), cooperation (Thomas, 1976, 1992; Ettlie and Reza, 1992), coordination (Wheelwright and Hayes,
1985; Sundstrom and Altman, 1989; Ettlie and Reza, 1992), communication/information exchange/interaction
(Thomas, 1976, 1992; Bonoma and Slevin, 1978; O’Reilly et al., 1989; Sundstrom and Altman, 1989), and mutual
agreement/supportive actions (Thomas, 1976, 1992; Bonoma and Slevin, 1978; Wheelwright and Clark, 1992).
Collectively, these terms characterize integration as being comprised of both interaction and agreement between
two entities.

3.1. Literature review—the integration of manufacturing and marketing/sales decisions (EARLY YEARS)

the majority of the work in this area focuses on the project or department level of an organization.

Conceptual research (Θεωρητική Προσέγγιση)

The conceptual research in this area implies that increased integration of the key decisions in manufacturing and
marketing/sales leads to increased organizational performance (e.g. Shapiro, 1977; Stalk and Hout, 1990; Spencer
and Cox, 1994). This suggests the presence of a universal law governing the relationship between integration and
performance. However, as previously noted, this perspective has ignored the costs associated with integration
(e.g. coordinating mechanisms, such as expensive computer information systems, administrative time and
overhead) which, when taken into account, would suggest that increasing the level of integration may not always
be beneficial to overall performance (Adler, 1995).

Analytical Approach (Αναλυτική Προσέγγιση)

The findings in several of these studies cast doubt on the existence of a universal law. Studies by Damon and
Schramm (1972) and Leitch (1974) utilized linear program models to examine the relationship between the level of
integration of production planning decisions and organizational performance. In their studies, they found that
decision integration was positively related to organizational performance.

Τα ευρήματα των περισσότερων ερευνών που ακολουθούν αναλυτική προσέγγιση θέτουν υπό αμφισβήτηση την
ύπαρξη ενός καθολικού νόμου.

Οι Damon και Schramm (1972) και ο Leitch (1974), χρησιμοποίησαν γραμμικά μοντέλα για να μελετήσουν τη
σχέση μεταξύ του επιπεδου της ολοκληρωσης των αποφασεων ποτ αφορουσαν τον προγραμματισμο της
παραγωγης και την αποδοση της επιχειρησης και κατεληξαν ότι υπαρχει θετικη συσχετιση μεταξυ των δυο.

Crittenden (1992), utilizing a simulation approach, demonstrated that the relationship between the level of
integration of manufacturing planning decisions and organizational performance was moderated by production
environmental conditions. The results of this study indicated that under conditions of constrained long-term
capacity, the level of decision integration was positively related to organizational performance. In contrast, firms
operating under conditions of excess long-term capacity showed no relationship between the level of integration
and organizational performance.

Ο Crittenden (1992), εφαρμοζοντας μια προσεγγιση προσομοιωσης, κατεδειξε ότι η σχεση μεταξυ του επιπεδου
ολοκληρωσης των αποφασεων του σχεδιασμου της παραγωγης και της αποδοσης της επιχειρησης, εξαρτιοταν
από τις περιβαλλοντικες συνθηκες. Υπο συνθηκες μακροχρονιας
Another analytical study by Kim et al. (1992) examined the moderating effects of a firm’s environment on the
relationship between integration of manufacturing and marketing/sales product-process decisions and the firm’s
performance. The authors tested their model under stochastic conditions with respect to product demand using
mathematical programming and simulation. They explored three separate dimensions of a firm’s environment:
complexity, uncertainty, and tightness. They modeled environmental complexity as a function of the degree of
product and process variety exhibited by an organization. Environmental uncertainty was depicted as the degree
of forecasting accuracy, and environmental tightness was characterized as the average contribution margin for a
firm’s products.

Firms operating in very complex environments and engaged in highly integrated decision making with regard to
product and process development decisions outperformed those that were not integrating decisions. With regard
to firms operating in environments characterized by low levels of complexity, no significant performance
differences were found between high and low levels of decision integration.

Σε μια άλλη αναλυτική μελέτη από τους Kim et al. (1992), εξετάστηκε η επίδραση των περιβαλλοντικών
συνθηκών, στη σχέση ανάμεσα στην ολοκληρωση των αποφασεων της παραγωγής και πωλήσεων

Οι συγγραφείς δοκίμασαν το μοντέλο τους κάτω από στοχαστικές συνθήκες όσον αφορά τη ζήτηση,
χρησιμοποιώντας υπολογιστικές μαθηματικές μεθόδους και προσομοιώσεις. Ερεύνησαν τρεις ξεχωριστές
διαστάσεις του περιβάλλοντος του οργανισμού: πολυπλοκότητα (complexity), αβεβαιότητα (uncertainty) και
στεγανότητα (tightness). Μοντελοποίησαν την περιβαλλοντική πολυπλοκότητα ως μια συνάρτηση του εύρους της
γκάμας των προϊόντων και του πλήθους των διαφορετικών διαδικασιών που επιδείκνυε η επιχείρηση. Η
περιβαλλοντική αβεβαιότητα απεικονίστηκε ως ο βαθμός ακριβείας στις προβλέψεις και τέλος, η περιβαλλοντική
στεγανότητα ως το μέσο περιθώριο για επιπλέον συνεισφορά για τα προϊόντα του οργανισμού.

Οργανισμοί που λειτουργούσαν μέσα σε σύνθετα περιβάλλοντα και ήταν αφοσιωμένοι σε υψηλά επίπεδα
ολοκλήρωσης στη διαδικασία λήψης αποφάσεων. απέδιδαν σημαντικά καλύτερα από ανταγωνιστές που δεν
χαρακτηρίζονταν από αντίστοιχο επίπεδο ολοκλήρωσης. Αντίθετα, σε οργανισμούς που λειτουργούσαν σε
περιβάλλοντα που χαρακτηρίζονταν από χαμηλά επίπεδα πολυπλοκότητας, και εφάρμοζαν λογική ολοκλήρωσης
στη λήψη αποφάσεων, δεν παρατηρήθηκε σημαντική διαφορά στην απόδοση τους σε σύγκριση με τον
ανταγωνισμό.
Empirical Studies (Εμπειρική Προσέγγιση)

One of the only empirical studies in this area of research was by Van Dierdonck and Miller (1980). In their study,
they examined the influence of a firm’s environment on the level of integration of decisions related to production
planning. They hypothesized that the degree of environmental complexity and uncertainty surrounding the
production planning process would influence the need to integrate production planning decisions. Their results
indicated that the degree of environmental uncertainty was positively associated with the level of integration and
that environmental complexity was not related to integration. It is important to note that in their study, the level
of integration of production planning decisions was measured across all functions and not just manufacturing and
marketing/sales. However, given the high degree of interdependence between manufacturing and marketing/sales
functions with respect to this decision area, one could safely assume that to a large degree the level of integration
between these two functions was reflected in their measure.

Μια από τις ελαχιστες ερευνες που εγιναν με empirical τροπο ήταν αυτή των Van Dierdonck και Miller (1980).

Summary

In summary, very little systematic (empirical or analytical) research has examined the relationship between the
integration of manufacturing and marketing/sales decisions and organizational performance. However, results of
several of these studies raise serious questions regarding the validity of an unconditional relationship between
integration and organizational performance (e.g. Van Dierdonck and Miller, 1980; Crittenden, 1992; Kim et al.,
1992).

In addition, unlike most of the previous studies, we examine the impact of the level of integration regarding
manufacturing and marketing/sales decisions at the organizational level. That is, the impact of integration
between manufacturing and marketing/sales functions is to be assessed across strategic business units (SBUs),
which include independently operated firms, including those owned by a parent company and joint ventures, and
individual divisions of corporations for which independent financial measures were reported.