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1. Introduction
Making the demand-side (DS) and supply-side (SS) processes of a business work together constitute a relevant opportunity for value creation and efficiency (Tate et al., 2015; Gölgeci et al., 2019). This requires coordination between the processes executed by these different sides within the firm, which requires both internal and external integration (Gimenez and Ventura, 2005; Esper et al., 2010; Hilletofth and Lättilä, 2012). Cross-functional integration presents itself as a practical tool necessary to operationalize the coordination between the functions that perform the DS and SS processes. Such initiative can alleviate conflicts and improve the efficiency of the whole supply chain (Piercy and Ellinger, 2015).
The integration of internal functions, i.e. cross-functional integration, is about cooperation between various functions within an organization toward the accomplishment of common goals (Lawrence and Lorsch, 1967). It has been studied in different contexts and within different hierarchical levels, as parts of processes and based on personal relationships (Frankel and Mollenkopf, 2015). Kahn (1996) characterizes cross-functional integration through a perspective of two basic dimensions: collaboration and interaction, regarding the informality and formality of the integration processes. Recent research studies present integration as a more complex practice, with multiple dimensions of analysis, such as processes that demand integration, integration level and impacts (Pimenta et al., 2016; Turkulainen et al., 2017).
The development of integration between the DS and SS functions is a prerequirement for a company to achieve more effective and competitive performance in the marketplace (Shields and Malhotra, 2008; Moses and Ahlstrom, 2009; Stank et al., 2012). Therefore, the need for better understanding of behavioral aspects between the DS and SS processes is reinforced by empirical studies (Flynn et al., 2010; Schoenherr and Swink, 2012). However, Piercy and Ellinger (2015) highlight that existing research in this field is criticized for not capturing the interaction between the DS and SS, through an in-depth explanation on interaction content, not just adopting a simplistic view of cross-functional relationships. Three points can be highlighted to detail this research gap.
First, the concept of demand and supply integration (DSI) positions cross-functional integration as a critical element to connect these two sides. This concept is focused on two basic themes: integrating demand and supply processes to create customer...