Using Cross-functional, Cross-firm Teams to Co-create Value: The Role of Financial Measures

Matias G. Enz, Douglas M. Lambert

Research output: Contribution to journalArticlepeer-review

Abstract

Increasingly, the involvement of representatives from all major business functions in cross-functional, cross-firm teams is being viewed as a means to develop and maintain profitable business-to-business relationships. However, if the measurements of the value co-created in these relationships with customers and suppliers do not incorporate the financial outcomes of joint cross-functional initiatives, managers can be led to make decisions that jeopardize the long-term profitability of the two firms. In this paper, the authors explore the differences in value co-creation when a company is linked to key customers and key suppliers through cross-functional teams and when it is not. Using a case study approach, the authors measured value co-creation in financial terms and describe how managers changed their behaviors toward customers and suppliers when they were able to compare the value that was being co-created in each relationship. In each pair of relationships, one involved cross-functional teams and the other did not. The results indicate that cross-functional, cross-firm involvement leads to increased value co-creation. The research suggests that marketing scholars and managers should emphasize the use of cross-functional teams that involve all major functions to manage relationships with key customers, and should incorporate financial measures in the evaluation of relationship performance.

Original languageAmerican English
JournalIndustrial Marketing Management
Volume41
DOIs
StatePublished - Apr 1 2012
Externally publishedYes

Disciplines

  • Finance
  • Library and Information Science
  • Business
  • Marketing

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