Supply Chain and Marketing Integration: Tension in Frontline Social Networks

• Author: Diane A. Mollenkopf,Hannah J. Stolze,LaDonna Thornton,Michael J. Brusco,Daniel J. Flint
• Published date: 01 July 2018
• Date: 01 July 2018
• DOI: http://doi.org/10.1111/jscm.12169

SUPPLY CHAIN AND MARKETING INTEGRATION:

TENSION IN FRONTLINE SOCIAL NETWORKS

HANNAH J. STOLZE

Wheaton College

DIANE A. MOLLENKOPF

University of Tennessee

LADONNA THORNTON

Auburn University

MICHAEL J. BRUSCO

Florida State University

DANIEL J. FLINT

University of Tennessee

Supply chain integration, social network research, and network theories

have proliferated over the last 10 years in supply chain research. Network

theories provide a broad base for understanding how firms, functions,

and teams work together but at the foundation of all networks are indi-

viduals and their connections (ties). This research elaborates on supply

chain integration through the lens of network theory, focusing on front-

line individuals’decision-making and behaviors as the foundation for

understanding cross-functional integration and firm-level outcomes. Two

studies, utilizing social network and inductive qualitative methods draw-

ing on grounded theory and ethnography, show that the execution of

marketing and supply chain strategies is dependent on the empowerment

and integration of a manufacturer’s frontline employees in retail supply

chains. Empowerment is found to be the result of a network of multiple

relationships. Tension mounts when frontline employees are disconnected

from cross-functional management sources in their organization and

instead turn to each other to solve problems that arise in their retail chan-

nels. The results highlight the importance of relational embeddedness and

empowerment in affecting internal supply chain integration.

Keywords: supply chain integration; multi-method research; network theory; social

network analysis

INTRODUCTION

Research increasingly demonstrates that internal

cross-functional integration is dependent on the

embeddedness of individuals in social networks, and

that such integration has a demonstrable impact on

performance (Stolze, Murfield, & Esper, 2015). Inter-

nal integration refers to the extent to which internal

functional individuals and units can act as a single,

unified whole (Moon, Autry, & Pellathy, 2016). Pagell

(2004) previously distinguished between two dimen-

sions of internal integration: internal alignment of

functional activities with the firm’s strategic intent,

and the cross-functional coordination and collabora-

tion required across traditional functional boundaries.

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2018, 54(3), 3–21

©2018 Wiley Periodicals, Inc.

Oliva and Watson (2011) made an initial foray into

exploration of micro-level perspectives to better

understand processes and challenges experienced by

individuals charged with cross-functional activities.

Furthermore, researchers have called for exploration

of how individuals achieve cross-functional integra-

tion at multiple levels of the firm within organiza-

tional networks (Stolze et al., 2015). Hence,

understanding the social networks of employees at the

individual level may be critical for improving perfor-

mance and cross-functional integration at the organi-

zational level.

Social network analysis is frequently applied in the

supply chain realm, providing a framework for exam-

ining organizational phenomena (Borgatti & Li, 2009;

Choi & Kim, 2008; Galaskiewicz, 2011; Kilduff &

Brass, 2010). While multi-level analysis provides a

means to understand complex behaviors and interac-

tions, such as integration, within and across firms

(Parkhe, Wasserman, & Ralston, 2006), the individual

remains the foundation of theorization: individuals

and micro-level decision-making and behavior form

the dynamics of groups, functions, organizations, and

ultimately, supply chains (Carter, Mesching, & Kauf-

man, 2015).

Social network research has been critiqued for

neglecting the context within which networks emerge

and constrain action (Emirbayer & Goodwin, 1994).

Yet, context has been shown to be important. For

example, an individual’s centrality within a depart-

ment can be positively related to promotions, whereas

an individual’s centrality within an entire organization

can be negatively related to promotions (Brass, 1984).

In essence, understanding the varying levels of an

individual’s social network may provide insight into

the interpersonal ties used to facilitate completion of

job responsibilities (Brass, Galaskiewicz, Greve, &

Tsai, 2004). Interpersonal ties, also known as social

capital, are considered valuable assets that provide

access to knowledge made available through struc-

tural, relational, and cognitive embeddedness with

other individuals, groups, and/or organizations (Gra-

novetter, 1983; Lawson, Tyler, & Cousins, 2008; Tsai

& Ghoshal, 1998). Thus, the concept of social capital

may be relevant for understanding internal integration

across multiple networks, especially when they span

organizational levels.

Despite the importance of social capital and social

networks for integration, supply chain research efforts

have yet to explore coordination and collaboration

required for internal integration at the individual level

(Leuschner, Rogers, & Charvet, 2013). Scholars have

primarily addressed the cross-functional dimension at

the group (department) or firm level (Frankel & Mol-

lenkopf, 2015). Subsequently, Frankel and Mol-

lenkopf (2015) have called for research examining

individuals’ actions across functional boundaries

when exploring cross-functional integration. The pur-

pose of this paper is to contribute to the growing dia-

logue on integration at the individual level of

analysis. The overarching question driving this

research asks how socially embedded individuals in

frontline cross-functional roles interact to coordinate

and execute marketing and supply chain strategies? By

utilizing both social network analysis and qualitative

methods, we employ two studies to explore the inte-

grated structure of individual networks within a con-

sumer packaged goods (CPG) manufacturing firm and

to explore the impact of individual integration on

retail supply chain outcomes. While past research has

explored social capital in the context of business units

at a firm level, we contribute to the supply chain inte-

gration literature by exploring the impact of individ-

ual-level integration to firm-level outcomes (both for

the retail and CPG company).

The results of the social network analysis demon-

strate a diminishing return of the cognitive embedded-

ness form of social capital and integration on retail

outcomes in the supply chain. The qualitative study

results differentiate the tension between empowerment

(shared power) and autonomy (independent power)

for frontline individuals to effectively implement the

cross-functional marketing and supply chain strategies

for which they are held responsible. Cross-functional

literature in the past has focused on the managerial

level of integration and has not explored in depth the

social networks that facilitate the integration of front-

line employees with cross-functional management

(Stolze et al., 2015). Together, these two studies con-

tribute to individual-level integration literature utiliz-

ing a social network lens to explore the impact of

individual-level integration across functional levels.

Toward that end, this paper proceeds as follows: an

overview of supply chain integration and network lit-

eratures is provided to further establish the contribu-

tion of this research. Next, the exploration of the

structural social networks is demonstrated through

network analysis in Study 1. The qualitative analysis

of Study 2 explores the network analysis findings in

more depth. Finally, general discussion and research

contributions and implications are presented.

INTEGRATON AND NETWORK LITERATURE

Cross-functional integration is most clearly defined

“as a process of interdepartmental interaction and

interdepartmental collaboration that brings depart-

ments together into a cohesive organization” (Kahn &

Mentzer, 1996, p. 9). Theoretical development and

practitioner publications have established the impor-

tance of integration beyond question (Esper, Ellinger,

Stank, Flint, & Moon, 2010; Kahn & Mentzer, 1996;

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