An Examination of Frontline Cross-functional Integration during Retail Transactions

This research investigates cross-functional integration in contexts where customers interact with multiple frontline functions during a retail transaction. Specifically, this study: (1) proposes and empirically tests a framework for frontline cross-functional integration, (2) shows that joint reward valence alters the effects of other integration mechanisms in ways that can sometimes be detrimental, and (3) demonstrates the effects of cross-functional integration on individual sales performance and job satisfaction. The proposed framework is empirically tested in the automobile sales context with sales and finance as the frontline functions. Results indicate that cross-functional training and cohesion influence quality of communication, which in turns leads to more effective relationships. As joint reward valence increases, the positive impact of cross-functional training on communication quality is enhanced; however, the positive impact of cohesion on communication quality is reduced. Similarly, as joint reward valence increases, relationship effectiveness leads to higher individual sales performance but the positive benefits of relationship effectiveness on job satisfaction diminish. Thus, this study improves the understanding of frontline cross-functional integration and the process by which integration mechanisms influence employee outcomes.

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► Cross-functional training and cohesion positively impact communication quality.
► Joint reward valence moderates these relationships.
► Relationship effectiveness increases with communication quality.
► Relationship effectiveness increases performance only for high joint reward valence.
► Relationship effectiveness increases job satisfaction for low joint reward valence.