Cross-functional integration (CFI) in organizations involves a sequence of integrated tasks and activities across multiple departments and units. Modern organizations are hierarchical and have separated functional departments. This may lead to limited reciprocal communication and poor coordination. Work is often divided, categorized, and poses a challenge for CFI personnel to be practical. This challenge continues as technology and organizational structures change.
This study is to investigate the effect of CFI on organization performance. The study also looked at CFI from a triadic level of analysis, a broader perspective involving several functional units and processes within the organization. Specifically, this study examines how collaboration, coordination, and communication as the three core processes of CFI impact organization performance and develops a research model based on Tushman & Nadler’s (1978) information processing framework. The study also incorporates the organizational structure (OS) by testing the moderated effect between CFI and performance. We tested the model via a survey that included 325 completed survey responses from online participants. The results showed a strong positive impact of collaboration, coordination, and communication on performance. Also, the study revealed that organizational structure partially moderates the relationships between CFI and performance. There was a strong interaction effect on the relationship between coordination and performance, and communication and performance. No relationship was found between collaboration and performance when the organizational structure is included. Implications of these findings are discussed, along with suggestions for future research
