Should Marketing be Cross-Functional? : Conceptual Development and International Empirical Evidence

Abstract

While it has frequently been stated that decisions on marketing activities should be made cross-functionally, there is no empirical evidence that shows benefits of performing marketing activities in this way. This paper examines the link between the cross-functional dispersion of influence on marketing activities and performance at the SBU level and considers dynamism of the market which may moderate the strength of this relationship. Using data from a cross-national study in three industry sectors, the authors find that cross-functional dispersion of influence on marketing activities increases the performance of the SBU. They also find that the relationship between the cross-functional dispersion of influence on marketing activities is negatively influenced by dynamism of the market. This research thus provides empirical evidence for the positive performance implications of cross-functional interaction in the context of marketing activities