MIS 9003 – Prof. Min-Seok Pang

Bharadwaj et al — Siddharth Bhattacharya

The paper develops a conceptual model to understand the effect of cross-functional coordination and cross-organizational coordination on firm-level manufacturing performance.Before this study,previous papers have talekd about manufacturing performance in the context of interfunctional and interorganizational coordination, but have proceeded as parallel literature streams.This paper provides a more wholistic picture by considering integrated information systems construct and manufacturing-IS coordination in conjunction with manufacturing-marketing and manufacturing-supply chain coordination.The paper goes on to hypothesize that coordination between a firm’s manufacturing and marketing functions,between manufacturing and supply chain partners and manufacturing and IS functions will have a positive relationship with integrated IS capability.The data comes from PIMS email contacts provided by APICS. To measure each coordination activity the authors use scale for each while creating a composite measure for manufacturing performance metrics comprising of operating margins, on-time (backlog) ratios, and inventory turns.The authors use an OLS specification for measuring manufacturing performance.The IVs include coordination activities, IS integration capability and their interaction.To rule out endogeniety the authors employ a number of robustness checks including a heckman model to rule out endogeniety of manufacturing performance.Due to the survey nature of the design there are few concerns like respondent bias which the authors acknowledge as limitations of the design.The final results show that firm’s integrated IS capability, and its complementary effect with other verticals(manufacturing, marketing, and supply chain) are significant predictors of manufacturing performance.

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