Skip to main content
Log in

Integrating marketing and information services functions: a complementarity and competence perspective

  • Original Empirical Research
  • Published:
Journal of the Academy of Marketing Science Aims and scope Submit manuscript

Abstract

Integrating two disparate functions in organizations—marketing and information services (IS)—has become a critical business concern due to the increasing use of information technology (IT) to find and open new markets, deliver improved services to customers, and streamline internal marketing processes. This study appears to be the first to empirically examine the dynamics of bringing these distinct groups of specialists together. We investigate potential antecedents, consequences, and contingencies of IS-marketing integration, drawing on theories of complementarity and competence. Through a survey of IS and marketing executives, we learn that integration is facilitated by trust between the two functions and the interaction between IT strategic intent and customer orientation; it is impeded by a gap in top management knowledge of IT versus marketing. We also find that integration fosters the much-coveted capabilities of developing and introducing innovations (innovativeness) as well as responding flexibly, swiftly, and adroitly to opportunities (strategic responsiveness). Additionally, we determine integration is bounded by market dynamism. In sum, integration between marketing and IS can be enhanced via managerial efforts, and the relationship is profoundly beneficial to businesses.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1

Similar content being viewed by others

Notes

  1. In the methods section, we theorize and test additional interaction effects as rival models, including customer orientation as a potential moderator of functional integration onto innovativeness and strategic responsiveness.

  2. In the methods section, we theorize and test additional interaction effects as rival models, including market dynamism as a potential moderator of IT strategic intent, trust, and top management knowledge gap onto functional integration.

  3. As noted earlier, Marketing-IS Trust has three formative first-order indicators, each having reflective measures.

References

  • Adjei, M. T., Griffith, D. A., & Noble, S. M. (2009). When do relationships pay off for small retailers? Exploring targets and contexts to understand the value of relationship marketing. Journal of Retailing, 85(4), 493–501.

    Article  Google Scholar 

  • Armstrong, J. S., & Overton, T. S. (1977). Estimating nonresponse bias in mail surveys. Journal of Marketing Research, 14(3), 396–403.

    Article  Google Scholar 

  • Armstrong, C. P., & Sambamurthy, V. (1999). Information technology assimilation in firms: the influence of senior leadership and IT infrastructures. Information Systems Research, 10(4), 304–327.

    Article  Google Scholar 

  • Ayers, D., Dahlstrom, R., & Skinner, S. (1997). An exploratory investigation of organizational antecedents to new product success. Journal of Marketing Research, 34(1), 107–117.

    Article  Google Scholar 

  • Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(3), 74–94.

    Article  Google Scholar 

  • Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.

    Article  Google Scholar 

  • Barney, J. B., & Hansen, M. H. (1994). Trustworthiness as a source of competitive advantage. Strategic Management Review, 15, 175–190.

    Article  Google Scholar 

  • Basu, A., and Jarnagin, C. (2008). How to tap IT’s hidden potential. Wall Street Journal, March 10, R4.

  • Beccerra, M., and Gupta, A. K. (1999). Trust within the organization: integrating the trust literature with agency theory and transaction cost economics. Public Administration Quarterly, Summer, 177-203.

  • Belsley, D. A., Kuh, E., & Elsch, R. E. (1980). Regression diagnostics: Identifying influential data and sources of collinearity. New York: Wiley.

    Book  Google Scholar 

  • Boyle, T. A., Kumar, V., & Kumar, U. (2005). Concurrent engineering teams: organizational determinants of usage. Team Performance Management, 11(7/8), 263–280.

    Article  Google Scholar 

  • Brynjolfsson, E., & Schrage, M. (2009). The new, faster face of innovation. Wall Street Journal, 12, R3.

    Google Scholar 

  • Butler, T. (2005). Power conflict, commitment and the development of sales and marketing IS/IT infrastructures at Digital Devices, Inc. Journal of Cases on Information Technology, 7(3), 18–36.

    Article  Google Scholar 

  • Chen, A. N. K., & Edgington, T. M. (2005). Assessing value in organizational knowledge creation: considerations for knowledge workers. MIS Quarterly, 29(2), 279–309.

    Google Scholar 

  • Chin, W. W. (1998). The Partial Least Squares Approach to Structural Equation Modeling. In G. A. Marcoulides (Ed.), Modern Methods for Business Research (pp. 295–336). Mahwah: LEA.

    Google Scholar 

  • Chin, W. W., Marcolin, B., & Newsted, P. R. (2003). A partial least squares latent variable modeling approach for measuring interaction effects: results from a Monte Carlo simulation study and an electronic-mail emotion/adoption study. Information Systems Research, 14(2), 189–217.

    Article  Google Scholar 

  • Cohen, J., Cohen, P., West, S. G., & Aiken, L. S. (2003). Applied multiple regression/correlation analysis for the behavioral sciences (3rd ed.). Mahwah: Lawrence Erlbaum Associates.

    Google Scholar 

  • Collins, C. J., & Smith, K. G. (2006). Knowledge exchange and combination: the role of human resource practices in the performance of high-technology firms. Academy of Management Journal, 49(3), 544–560.

    Article  Google Scholar 

  • Coviello, N., Winklhofer, H., & Hamilton, K. (2006). Marketing practices and performance of small service firms. Journal of Service Research, 9(1), 38–38.

    Article  Google Scholar 

  • Cui, A. S., Griffith, D. A., & Cavusgil, S. T. (2005). The influence of competitive intensity and market dynamism on knowledge management capabilities of multinational corporation subsidiaries. Journal of International Marketing, 13(5), 32–53.

    Article  Google Scholar 

  • Davis, D. F., & Golicic, S. L. (2010). Gaining comparative advantage in supply chain relationships: the mediating role of market-oriented IT competence. Journal of the Academy of Marketing Science, 38(1), 56–70.

    Article  Google Scholar 

  • Dedrick, J., Gubanxani, V., & Kramer, K. L. (2003). Information technology and economic performance, a critical review of the empirical evidence. ACM Computing Surveys, 35(1), 1–28.

    Article  Google Scholar 

  • Deshpande, R., Farley, J. U., & Webster, F. E. (1993). Corporate culture, customer orientation, and innovativeness in Japanese firms: a quadrad analysis. Journal of Marketing, 57, 22–37.

    Article  Google Scholar 

  • Devaraj, S., & Kohli, R. (2000). Information technology payoff in the health-care industry: a longitudinal study. Journal of Management Information Systems, 16(4), 41–67.

    Google Scholar 

  • Diamantopoulos, A., & Winklhofer, H. M. (2001). Index construction with formative indicators: an alternative to scale development. Journal of Marketing Research, 38, 269–277.

    Article  Google Scholar 

  • Fornell, C., & Larcker, H. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18, 39–50.

    Article  Google Scholar 

  • Grant, R. M. (1991). The resource-based theory of competitive advantage: implications for strategy formulation. California Management Review, 33, 114–135. Spring.

    Google Scholar 

  • Grewal, R., and Tansuhaj, P. (2001). Building organizational capabilities for managing economic crisis: the role of market orientation and strategic flexibility. Journal of Marketing, April, 67-80.

  • Griffin, A., & Hauser, J. R. (1996). Integrating R&D and marketing: a review and analysis of the literature. Journal of Product Innovation Management, 13, 191–215.

    Article  Google Scholar 

  • Gupta, A. K., Raj, S. P., & Wilemon, D. (1986). A model for studying R&D-marketing interface in the product innovation process. Journal of Marketing, 50(2), 7–17.

    Article  Google Scholar 

  • Henard, D. H., & Szymanski, D. M. (2001). Why some new products are more successful than others. Journal of Marketing Research, 38(3), 362–375.

    Article  Google Scholar 

  • Henseler, J., & Fassott, G. (2009). Testing moderating effects in PLS path models: An illustration of available procedures. In V. Esponito, W. W. Vinzi, J. H. Chin, & H. Wang (Eds.), Handbook of partial least squares: Concepts, methods and applications in marketing and related fields. Berlin: Springer-Verlag.

    Google Scholar 

  • Homburg, C., & Pflesser, C. (2000). A multi-layer model of market-oriented organizational culture: measurement issues and performance outcomes. Journal of Market Research, 37(4), 449–462.

    Article  Google Scholar 

  • Huff, L., & Kelley, L. (2003). Levels of organizational trust in individualist versus collectivist societies: a seven-nation study. Organization Science, 14(1), 81–90.

    Article  Google Scholar 

  • Hult, G. T., Hurley, R. F., & Knight, G. A. (2004). Innovativeness: its antecedents and impact on business performance. Industrial Marketing Management, 33, 429–438.

    Article  Google Scholar 

  • Hult, G. T., Ketchen, D. J., Jr., & Arrfelt, M. (2007). Strategic supply chain management: improving performance through a culture of competitiveness and knowledge development. Strategic Management Journal, 28, 1035–1052.

    Article  Google Scholar 

  • Hurley, R. F., & Hult, G. T. (1998). Innovation, market orientation, and organizational learning: an integration and empirical examination. Journal of Marketing, 62(3), 42–54.

    Article  Google Scholar 

  • Jarvis, C. B., MacKenzie, S. B., & Podsakoff, P. M. (2003). A critical review of construct indicators and measurement model misspecification in market and consumer research. Journal of Consumer Research, 30(2), 199–218.

    Article  Google Scholar 

  • Kahn, K. B., & Mentzer, J. T. (1998). Marketing’s integration with other departments. Journal of Business Research, 42, 53–62.

    Article  Google Scholar 

  • Kearns, G. S., & Lederer, A. L. (2003). A resource-based view of strategic it alignment: how knowledge sharing creates competitive advantage. Decision Science, 34(1), 1–29.

    Article  Google Scholar 

  • Lawrence, P. R., & Lorsch, J. W. (1967). Organization and environment: Managing differentiation and integration. Boston: Harvard University.

    Google Scholar 

  • Leenders, M. A. A. M., & Wierenga, B. (2002). The effectiveness of different mechanisms for integrating marketing and R&D. Journal of Product Innovation Management, 19(4), 305–317.

    Article  Google Scholar 

  • Leonard-Barton, D. (1995). Wellspring of knowledge. Boston: Harvard Business School Press.

    Google Scholar 

  • Liang, H., Saraf, N., Hu, Q., & Xue, Y. (2007). Assimilation of enterprise systems: the effect of institutional pressures and the mediating role of top management. MIS Quarterly, 31(1), 59–87.

    Google Scholar 

  • Luo, X., & Hassan, M. (2009). The role of top management networks for market knowledge creation and sharing in China. Journal of Business Research, 62, 1020–1026.

    Article  Google Scholar 

  • Maltz, E., & Kohli, A. (2000). Reducing marketing’s conflict with other functions: the differential effects of integrating mechanisms. Journal of the Academy of Marketing Science, 28(4), 479–491. Fall.

    Article  Google Scholar 

  • Masrek, M. N., Karim, N. S. A., & Hussein, R. (2008). The effect of organizational and individual characteristics on corporate intranet utilizations. Information Management & Computer Security, 16(2), 89–112.

    Article  Google Scholar 

  • McAllister, D. J. (1995). Affect- and cognition-based trust as foundations for interpersonal cooperation in organizations. Academy of Management Journal, 38(1), 24–59.

    Article  Google Scholar 

  • Menguc, B., & Auh, S. (2006). Creating a firm-level dynamic capability through capitalizing on market orientation and innovativeness. Journal of the Academy of Marketing Science, 34(1), 63–73.

    Article  Google Scholar 

  • Milgrom, P., & Roberts, J. (1995). Complementarities and fit: strategy, structure, and organizational change in manufacturing. Journal of Accounting and Economics, 19, 179–208.

    Article  Google Scholar 

  • Miller, D., & Friesen, P. (1983). Strategy-making and environment: the third link. Strategic Management Journal, 4(3), 221–236.

    Article  Google Scholar 

  • Moorman, C., & Slotegraaf, R. J. (1999). The contingency value of complementary capabilities in product development. Journal of Marketing Research, 36, 239–257.

    Article  Google Scholar 

  • Narver, J. C., & Slater, S. F. (1990). The effect of market orientation on business profitability. Journal of Marketing, 54, 20–35.

    Article  Google Scholar 

  • O’Brien, R. M. (2007). A caution regarding rules of thumb for variance inflation factors. Quality and Quantity, 41(5), 673–690.

    Article  Google Scholar 

  • Olson, E. M., Walker, O. C., Jr., Ruekert, R. W., & Bonner, J. M. (2001). Patterns of cooperation during new product development among marketing, operations, and R&D: implications for project performance. Journal of Product Innovation Management, 18, 258–271.

    Article  Google Scholar 

  • Pavlou, P. A., & El Sawy, O. A. (2006). From IT leveraging competence to competitive advantage in turbulent environments: the case of new product development. Information Systems Research, 17(3), 198–227.

    Article  Google Scholar 

  • Podsakoff, P. M., Mackenzic, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method and biases in behavioral research: a critical review ot the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903.

    Article  Google Scholar 

  • Pollanis, Y. A. (2003). Patterns of co-alignment in information-intensive organizations: business performance through integration strategies. International Journal of Information Management, 23, 469–492.

    Article  Google Scholar 

  • Plugge, A., & Janssen, M. (2009). Managing change in IT outsourcing arrangements: an offshore service provider perspective on adaptability. Strategic Outsourcing, 2(3), 257–274.

    Article  Google Scholar 

  • Ray, G., Barney, J. B., & Muhanna, W. A. (2004). Capabilities, business processes, and competitive advantage: choosing the dependent variable in empirical tests of the resource-based view. Strategic Management Journal, 25, 23–27.

    Article  Google Scholar 

  • Rindfleisch, A., & Moorman, C. (2003). Interfirm cooperation and customer orientation. Journal of Marketing Research, 11, 421–436.

    Article  Google Scholar 

  • Ruekert, R. W., & Walker, O. C., Jr. (1987). Marketing’s interaction with other functional units: a conceptual framework and empirical evidence. Journal of Marketing, 51(1), 1–19.

    Article  Google Scholar 

  • Saini, A., & Johnson, J. L. (2005). Organizational capabilities in e-commerce: an empirical investigation of e-brokerage services. Journal of the Academy of Marketing Science, 33(3), 360–376.

    Article  Google Scholar 

  • Sanchez, R. (1995). Strategic flexibility in product competition. Strategic Management Journal, 16, 135–159.

    Article  Google Scholar 

  • Santos, F. M., & Eisenhardt, K. M. (2005). Organizational boundaries and theories of organizations. Organization Science, 16(5), 491–508.

    Article  Google Scholar 

  • Sherman, J. D., Souder, W. E., & Jenssen, S. A. (2000). Differential effects of the primary forms of cross-functional integration on product development cycle time. Journal of Product Innovation Management, 17(4), 257–267.

    Article  Google Scholar 

  • Sherman, J. D., Berkowitz, D., & Souder, W. E. (2005). New product development performance and the interaction of cross-functional integration and knowledge management. Journal of Product Innovation Management, 22(5), 399–411.

    Article  Google Scholar 

  • Sitkin, S. B., & Stickel, D. (1996). The road to hell: The dynamics of distrust in an era of quality. In R. M. Kraemer & T. R. Tyler (Eds.), Trust in Organizations: Frontiers of Theory and Research (pp. 196–215). London: Sage.

    Google Scholar 

  • Song, X. M., & Parry, M. E. (1997). The determinants of Japanese new product successes. Journal of Marketing Research, 34(1), 64–76.

    Article  Google Scholar 

  • Song, X. M., & Swink, M. (2009). Marketing-manufacturing integration across stages of new product development: effects on the success of high- and low-innovativeness products. IEEE Transactions on Engineering Management, 56(1), 31–50.

    Article  Google Scholar 

  • Song, X. M., & Montoya-Weiss, M. M. (2001). The effects of perceived technological uncertainty on Japanese new product development. Academy of Management Journal, 44(1), 61–81.

    Article  Google Scholar 

  • Stank, T. P., Daugherty, P. J., & Ellinger, A. E. (1999). Marketing/logistics integration and firm performance. International Journal of Logistic Management, 10(1), 11–25.

    Article  Google Scholar 

  • Tallon, P. P., Kramer, K. L., & Gurbaxani, V. (2000). Executives’ perceptions of the business value of information technology: a process-oriented approach. Journal of Management Information Systems, 16(4), 145–173.

    Google Scholar 

  • Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18, 509–533.

    Article  Google Scholar 

  • Troy, L. C., Hirunyawipada, T., & Paswan, A. K. (2008). Cross-functional integration and new product success: an empirical investigation of the findings. Journal of Marketing, 72(6), 132–146.

    Article  Google Scholar 

  • Vargo, S., & Lusch, R. F. (2004). Evolving toward a new dominant logic for marketing. Journal of Marketing, 68(1), 1–17.

    Article  Google Scholar 

  • Wang, Y., Lo, H. P., Zhang, Q., & Zue, Y. (2006). How technological capability affects business performance. Journal of Technology Management, 1(1), 27–52.

    Google Scholar 

  • Weil, P., & Broadbent, M. (1998). Leveraging the new infrastructure, how market leaders capitalize on information technology. Boston: Harvard Business School Press.

    Google Scholar 

  • Weil, P., Subramani, M, and Broadbent, M. (2002). Building IT infrastructure for strategic agility. MIT Sloan Management Review, Fall, 57–65.

  • Zhang, M. J. (2005). Information systems, strategic flexibility, and firm performance: an empirical examination. Journal of Engineering and Technology Management, 22, 163–184.

    Article  Google Scholar 

Download references

Acknowledgment

The Center for Research on Information Management at the University of Illinois at Chicago is gratefully acknowledged for a grant to conduct this research awarded to the first author.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Cheryl Nakata.

Appendix A

Appendix A

Table 4 Measurements and Item Loadings (N = 100)

Rights and permissions

Reprints and permissions

About this article

Cite this article

Nakata, C., Zhu, Z. & Izberk-Bilgin, E. Integrating marketing and information services functions: a complementarity and competence perspective. J. of the Acad. Mark. Sci. 39, 700–716 (2011). https://doi.org/10.1007/s11747-010-0236-z

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11747-010-0236-z

Keywords

Navigation