Streamlining interfunctional coordination in industrial SMEs

What is it about?

Although the pattern of interfunctional coordination for large firms has been described and studied, little attention is paid to its fit to industrial small and medium-sized enterprises (I-SMEs). This research updates the conventional understanding by investigating the interfunctional coordination pattern in market-oriented I-SMEs, taking into account the customer environment and the organizational environment. Using a multiple case studies method, this study describes the market-oriented practices of interfunctional coordination in I-SMEs. Drawing upon the findings, this study proposes a useful guideline, namely, streamlined interfunctional coordination, for I-SMEs to improve the marketing outcomes. It suggests that, to enhance the effectiveness of interfunctional coordination, I-SMEs should reduce their coordinative intensity in information exchange and limit the amount of relational flows in relationship exchange. This research offers insights into managing organizational culture and market orientation for I-SMEs.

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