Cross-functional integration in the order fulfillment process: Exploring mechanisms in engineer-to-order environments

Other conference contribution, 2018

Purpose
To understand how cross-functional integration (CFI) increases input data quality and enhances information processing efficiency in Engineer-to-Order (ETO) environments.

Methodology
The empirical study focuses on the order acceptance phase of the order fulfilment process in two ETO-oriented companies. A literature review and a multi-case study were conducted. The within-case analysis identifies mechanisms and explores how they are used and needed in the unique contexts. The cross-case analysis addresses related similarities and differences.

Findings
Integrative coordination mechanisms relevant for the activities of problem-solving and decision-making rationalization are centralization, formalization, and information systems. Actor integrators are particularly relevant for the activities of decision-making rationalization, while cross-functional teams and task design are relevant for the activities of problem solving. Integrative coordination mechanisms increase input data quality and enhance information processing efficiency through reducing uncertainty related to, and through balancing intensities of: demand and supply.

Research implications
The findings operationalize the CFI concept from a coordination perspective, and propose process-specific interpretations of CFI related to order fulfilment in ETO environment.

Practical implications
The findings provide guidelines for how CFI may help to increase the effectiveness and efficiency of the information processing of tactical planning in an ETO environment.

Original
CFI research is limitedly addressed in dynamic environments like ETO where new product development contributions are needed for each incoming order.