Home Articles Abstract
Research Article

Decision Coordination Mechanisms between Production and Marketing

Kang, Byeongseo · Seok, Giseok · Choi, Gyeongun

Published: January 1994 · Vol. 23, No. 2 · pp. 159-178
Full Text

Abstract

This paper examines how firms coordinate competitive elements between the production department and the marketing department in order to achieve organizational goals. The study subjects were employees working in the production and marketing departments of textile companies. The results indicate that distinct domains exist between the two departments regarding decision-making on competitive elements: the production department considers capacity utilization and expansion of production facilities as its unique domain, while the marketing department regards product pricing, product assortment, color, design, inventory maintenance, and new product development as its unique domain. Next, examining the relationship between decision-making coordination methods and competitive elements, coordination by the planning office or staff, department heads, and working-level personnel received positive evaluations from organizational members. Additionally, it was found that the better the coordination outcomes regarding new product development, product pricing, and inventory maintenance, the more organizational members perceive that organizational goals are being well achieved. Finally, the implications of this study regarding coordination between production and marketing departments, as well as the limitations of this paper, are presented.