Integration, uncertainty and information: how do they affect planning performance?

Abstract

Purpose – Effective planning requires the participation of different functions and may be hampered by lack ofintegration and information quality (IQ). This paper aims to investigate the relationships among integration,uncertainty, IQ and performance, in the context of the production planning and control function. The literaturelacks in-depth studies that consider these factors altogether, showing how they interact and how theycontribute to improve business performance.Design/methodology/approach – The authors introduce the variable of planning performance, whichrepresents the quality of the production plans/planning process and is related to the frequency and causes ofmodifications to these plans. The relationships among the mentioned constructs are investigated by means ofmultiple case studies.Findings – The results illustrate that integration is positively related to planning performance, and thisrelationship is mediated by IQ and moderated by uncertainty.Originality/value – The presented analysis may help practitioners to foster interfunctional integration,better cope with uncertainty and improve information management, aiming to achieve better planningperformance. The managers can choose integration and IQ improvement mechanisms that better fit to theirenvironment/reality, using the four different cases as a benchmark. Moreover, this research contributes to theliterature exploring this contingency perspective by means of in-depth case studies, considering that most ofthe existing research adopting this perspective is survey-based