Matching goal-based incentive systems with cross-functional integration to improve operation and innovation performance. Issue 2 (31st January 2022)

• Record Type: Journal Article
• Authors: Kang, Mingu; Ki-Hyun, Um.; Shou, Yongyi; Roh, James Jungbae
• Is Part Of: International journal of operations & production management. Volume 42:Issue 2(2022)
• Page Start: 230
• Page End: 254
• Publication Date: 2022-01-31
• Subjects: Cross-functional integration -- Goal-based incentive system -- Innovation performance -- Operational performance -- Manufacturing firms; Production management -- Periodicals; Business logistics -- Periodicals; 658.5
• DOI: 10.1108/IJOPM-05-2021-0345
• Languages: English
• ISSNs: 0144-3577

Abstract

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.