Aligning Marketing and Supply Chain Functions: A Longitudinal Study on the Impact of Cross-Functional Integration Mechanisms on Market Responsiveness and Firm Profitability
Abstract
A fundamental and persistent challenge in organizational management is the inherent misalignment between marketing and supply chain functions. Historically, marketing focuses on demand generation through product variety, promotion, and availability, while supply chain management prioritizes efficiency in demand fulfillment through cost minimization, standardization, and stable operations. This natural divergence in goals and incentives often creates conflict, operational inefficiencies, and suboptimal overall performance, ultimately eroding competitive advantage. Although the positive correlation between integration and performance is established, extant literature is predominantly cross-sectional, capturing a static snapshot of this relationship. A significant gap exists in understanding the temporal evolution of this dynamic—specifically, how different integration mechanisms develop and compound their effects on performance outcomes over time, and through what mediating processes. This study aims to address this gap by employing a longitudinal research design to examine the impact of specific cross-functional integration mechanisms—categorized as structural (e.g., joint planning, profit centers), technological (e.g., integrated information systems), and social (e.g., trust, collaborative culture)—on both market responsiveness and firm profitability. Data were collected from senior managers over a three-year period.The results indicate that both formal and informal integration mechanisms have a significant positive impact on a firm's market responsiveness. Furthermore, the effect of integration on profitability is found to be partially and, in some cases, fully mediated through the enhancement of market responsiveness. Longitudinal analysis reveals that these positive effects are not immediate but strengthen and become more significant over time, underscoring the evolutionary nature of capability building. This research makes two primary contributions. Theoretically, it provides longitudinal empirical evidence and tests a mediation model, offering a more nuanced understanding of how and over what time period integration influences profitability. Practically, it provides managers with an evidence-based roadmap, identifying the most effective integration mechanisms to prioritize for improving long-term performance.
References
B. Alaydi, S. I. Ng, and X. J. Lim, "The Role of Air Traffic Controllers' Mindfulness in Enhancing Air Traffic Safety: JDR Theory in the Saudi Arabian Aviation Context," Logistics, vol. 9, no. 3, p. 117, 2025.
J. C. Anderson and D. W. Gerbing, "Structural equation modeling in practice: A review and recommended two-step approach," Psychological Bulletin, vol. 103, no. 3, pp. 411-423, 1988.
C. Baah, D. O. Agyeman, I. S. K. Acquah, Y. Agyabeng-Mensah, E. Afum, K. Issau, and D. Faibil, "Effect of information sharing in supply chains: understanding the roles of supply chain visibility, agility, collaboration on supply chain performance," Benchmarking: An International Journal, vol. 29, no. 2, pp. 434-455, 2022.
R. P. Bagozzi, "Evaluating structural equation models with unobservable variables and measurement error: a comment," Journal of Marketing Research, vol. 18, no. 3, pp. 375-381, 1981.
H. Birkel and J. M. Müller, "Potentials of industry 4.0 for supply chain management within the triple bottom line of sustainability-A systematic literature review," Journal of Cleaner Production, vol. 289, p. 125612, 2021.
N. Boso, V. M. Story, and J. W. Cadogan, "Entrepreneurial orientation, market orientation, network ties, and performance: Study of entrepreneurial firms in a developing economy," Journal of Business Venturing, vol. 28, no. 6, pp. 708-727, 2013.
S. Chatterjee, N. P. Rana, and Y. K. Dwivedi, "How does business analytics contribute to organisational performance and business value? A resource-based view," Information Technology & People, vol. 37, no. 2, pp. 874-894, 2024.
J. J. Coutts and A. F. Hayes, "Questions of value, questions of magnitude: An exploration and application of methods for comparing indirect effects in multiple mediator models," Behavior Research Methods, vol. 55, no. 7, pp. 3772-3785, 2023.
D. A. Dillman, J. D. Smyth, and L. M. Christian, Internet, mail and mixed-mode surveys: The tailored design method, Reis, vol. 133, pp. 81-94, 2011.
S. R. Dobrow and H. Weisman, "Only time will tell: Conducting longitudinal research on careers," in Handbook of research methods in careers, Edward Elgar Publishing, 2021, pp. 164-190.
T. C. Dzogbewu, S. K. Fianko, S. A. Jnr, and N. Amoah, "Assessment of the mediating effects of external integration on manufacturing firms operational performance," Journal of Industrial Engineering and Management (JIEM), vol. 14, no. 4, pp. 718-732, 2021.
H. Fatorachian and H. Kazemi, "Impact of Industry 4.0 on supply chain performance," Production Planning & Control, vol. 32, no. 1, pp. 63-81, 2021.
P. Fontoura and A. Coelho, "More cooperative... more competitive? Improving competitiveness by sharing value through the supply chain," Management Decision, vol. 60, no. 3, pp. 758-783, 2022.
B. Horlach, "Shaping the IT Function for the Digital Age–Re-Designing and Re-Conceptualizing IT Governance Decision Areas and Business IT Alignment for Organizational Agility," Doctoral dissertation, Staats-und Universitätsbibliothek Hamburg Carl von Ossietzky, 2021.
B. J. Jaworski and A. K. Kohli, "Market orientation: antecedents and consequences," Journal of Marketing, vol. 57, no. 3, pp. 53-70, 1993.
K. E. Kanyoma, F. W. Agbola, and R. Oloruntoba, "Inhibitors and enablers of supply chain integration across multiple supply chain tiers: evidence from Malawi," The International Journal of Logistics Management, vol. 32, no. 2, pp. 618-649, 2021.
R. B. Kline, Principles and practice of structural equation modeling, Guilford publications, 2023.
S. R. Krishna, K. Rathor, J. Ranga, A. Soni, and A. Kumar, "Artificial Intelligence Integrated with Big Data Analytics for Enhanced Marketing," in 2023 International Conference on Inventive Computation Technologies (ICICT), 2023, pp. 1073-1077.
D. O. Lawrence and G. Poi, "Environmental Intelligence and Innovation Capabilities of Communication Companies in Nigeria," European Journal of Business and Innovation Research, vol. 9, no. 5, pp. 34-46, 2021.
N. Leemann and D. K. Kanbach, "Toward a taxonomy of dynamic capabilities–a systematic literature review," Management Research Review, vol. 45, no. 4, pp. 486-501, 2022.
S. Lee, J. B. Sheu, and S. H. Yoo, "Multi-period quality and pricing decision in production-focused and market-focused supply chains: How to manage a long-term contractual relationship," Transportation Research Part E: Logistics and Transportation Review, vol. 189, p. 103662, 2024.
T. D. Little, Longitudinal structural equation modeling, Guilford Publications, 2024.
R. Luong and J. K. Flake, "Measurement invariance testing using confirmatory factor analysis and alignment optimization: A tutorial for transparent analysis planning and reporting," Psychological Methods, vol. 28, no. 4, pp. 905, 2023.
N. T. P. Mai, T. T. Nguyet, B. D. Trang, and C. T. Yen, "Leader Social Capital via Business Partner Ingredients and Internal Social Capital of Logistics Firm," Pakistan Journal of Life & Social Sciences, vol. 22, no. 2, 2024.
S. McCartney and N. Fu, "Bridging the gap: why, how and when HR analytics can impact organizational performance," Management Decision, vol. 60, no. 13, pp. 25-47, 2022.
M. Pejić Bach, A. Klinčar, A. Aleksić, S. Rašić Jelavić, and J. Zeqiri, "Supply chain management maturity and business performance: the balanced scorecard perspective," Applied Sciences, vol. 13, no. 4, p. 2065, 2023.
A.Rashid, R. Rasheed, A. H. Ngah, and R. K. Marjerison, "A nexus of multiple integrations and business performance through supply chain agility and supply flexibility: a dynamic capability view," Journal of Science and Technology Policy Management, 2024.
I.Russo, I. Confente, J. Holmström, M. Öhman, and T. Tokar, "Embracing methodological evolution and diversity in logistics and supply chain management research," International Journal of Physical Distribution & Logistics Management, vol. 54, no. 7/8, pp. 653-672, 2024.
A.A. A. Shukor, M. S. Newaz, M. K. Rahman, and A. Z. Taha, "Supply chain integration and its impact on supply chain agility and organizational flexibility in manufacturing firms," International Journal of Emerging Markets, vol. 16, no. 8, pp. 1721-1744, 2021.
E. E. Udofia, B. O. Adejare, G. O. Olaore, and E. E. Udofia, "Direct and indirect impact of quality management on the integrated performance of medium-scale manufacturers," The TQM Journal, vol. 33, no. 6, pp. 1589-1609, 2021.
Q. Wang, L. Chen, F. Jia, Y. Luo, and Z. Zhang, "The relationship between supply chain integration and sustainability performance: A meta-analysis," International Journal of Logistics Research and Applications, vol. 27, no. 8, pp. 1388-1409, 2024.
X. Zhang, Y. Xu, and L. Ma, "Research on successful factors and influencing mechanism of the digital transformation in SMEs," Sustainability, vol. 14, no. 5, p. 2549, 2022.
X. H. Zhou, C. Zhou, D
