Impact of JIT-selling strategy on organizational structure

• Published in: Industrial management + data systems Vol. 111; no. 1; pp. 63 - 83
• Main Authors: Green, Kenneth W, Inman, R. Anthony, Birou, Laura M
• Format: Journal Article
• Language: English
• Published: Wembley Emerald Group Publishing Limited 01-01-2011
• Subjects: Collaboration; Competitive advantage; Customers; Data collection; Financial performance; Hypotheses; Industrial management; Interfaces; Just in time; Logistics; Manufacturers; Manufacturing; Market strategy; Marketing; Mathematical analysis; Operations management; Organizational change; Organizational structure; Strategic management; Strategy; Studies; Suppliers; Supply chains; Selling; Manufacturing; Just in time; Organizational structures; Marketing
• ISSN: 0263-5577; 1758-5783
• DOI: 10.1108/02635571111099730

Purpose - This study aims to assess the impact of a JIT-selling strategy on organizational structure by generally replicating the previous work of Germain et al.Design methodology approach - In contrast to the sample population of logistics managers surveyed by Germain et al. this research draws on data from manufacturing executives with marketing responsibilities. More importantly, a major limitation of the earlier research, use of a single-item scale measurement of the JIT-selling construct, is overcome. A structural equation modeling approach was used to assess the impact of JIT-selling on the organizational structure dimensions of integration, performance control, specialization, and decentralization.Findings - Germain et al. found that JIT-selling impacts performance control, specialization, and scheduling decentralization but not integration. While the results of this study support earlier findings that JIT-selling impacts performance control and specialization, the results alternately find support for a relationship between JIT-selling and integration and refute the previous finding that JIT-selling is related to decentralization.Research limitations implications - The findings generally support the proposition that adoption of a JIT-selling strategy will result in changes in organizational structure.Practical implications - Manufacturing managers working to strengthen relationships with customers through a JIT-selling approach should prepare for organizational change in terms of increased integration, performance control, and specialization.Originality value - JIT strategies are being used to strengthen the operations marketing interface within the manufacturing sector. Specifically, this study assesses the impact of the JIT-selling strategy on organizational structure in an effort to verify the work of Germain et al.