Synergy of interfunctional cooperation and services in companies producing electrical equipment and electronic components in the Czech Republic: pilot study

Abstract

Research background:  Interfunctional coordination (IFC) is a part of market orientation and at the same time an approach which helps to improve cooperation between different departments or functions in a company. Market orientation is an approach aimed at external and internal elements and activities leading to performance increase. Services offered by a manufacturer are activities complementing their products. Manufacturers can benefit from the service differentiation and use it to design alternative marketing strategies. Generally, IFC and services ? contributes to higher positive effect on business performance. For this reason, it is interesting to know if synergy of IFC and services have a higher positive effect on business performance.

Purpose of the article: This article aims to determine how IFC and services at manufacturing companies in the Czech Republic influence business performance. The research question is as follows: Does the synergy of IFC and services in companies producing electrical equipment and electronic components have a higher positive effect on business performance?

Methods: Sixty SME?s filled in a questionnaire to gather information about IFC and services. For measurement of correlation for two variables, Spearman's rank correlation coefficient was chosen. Regression analysis was used for measuring the synergy.

Findings & Value added: The main finding shows that the synergy of the quantities observed has not been confirmed, although some of the following relations were approved such as a positive relationship between: a) some items of IFC and items of business performance, b) some items of services and items of business performance and c) items of IFC and items of services. The result of the paper shows further consequences of IFC and services in today?s manufacturing companies.

Keywords

interfunctional coordination, services in productoriented companies, business performance, synergy, manufacturing companies

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