Creating cross-functional strategic consensus in manufacturing facilities

Abstract

Purpose – The purpose of this paper is to propose and tests a model that plant managers can use to develop cross-functional strategic consensus between purchasing, production, and logistics. The mechanisms studied are grounded in Organizational Information Processing Theory. Design/methodology/approach – The model is tested using a cross-sectional survey of 120 manufacturing facilities. Path Analysis is used to determine the strength of the relationships and the model fit. Findings – The mechanisms studied have a positive effect on the level of cross-functional strategic consensus. Some mechanisms have an effect on consensus on goals, while others have an effect on consensus on priorities. The results suggest that a plant manager must implement these mechanisms in combination to achieve the best result. Research limitations/implications – The survey respondents are all from US manufacturing facilities. Although reasonably representative of the US population of manufacturing firms, results of a similar study in other countries would further refine the knowledge concerning the effects of the mechanisms on developing strategic consensus at the operating level. Practical implications – The results of this paper provide plant managers with guidance regarding the mechanisms that can enhance cross-functional strategic consensus. In a hypercompetitive and dynamic environment, these mechanisms can help the Plant Manager create a streamlined and efficient operation. Originality/value – This paper presents practitioners with mechanisms that can promote consensus between key supply chain departments. The results highlight the need to implement combinations of mechanisms in order to address both dimensions of strategic consensus. For academics, it provides an empirical test of antecedents to strategic consensus at the operational level.