Cross-functional knowledge sharing, coordination and firm performance: The role of cross-functional competition

• Published in: Industrial marketing management 2018-05, Vol.71, p.123-134
• Main Authors: Nguyen, Nguyen Phong, Ngo, Liem Viet, Bucic, Tania, Phong, Nguyen Dong
• Format: Article
• Language: English
• Subjects: Competition; Coordination; Cross-functional coopetition; Cross-functional knowledge sharing; Transition economy
• ISSN: 0019-8501; 1873-2062
• DOI: 10.1016/j.indmarman.2017.12.014

This study advances extant literature in cross-functional knowledge sharing by developing and testing a model of coopetition that examines (1) the relationships of various coordination mechanisms (formalization, lateral relations, informal networking, and shared vision) with knowledge sharing, (2) the moderating effect of cross-functional competition on these relationships, (3) and the mediating effect of organizational innovativeness on the relationship between cross-functional knowledge sharing and firm performance. Results from a sample of 224 large firms in a transition economy show that lateral relations, informal networking, and shared vision as coordination mechanisms relate significantly to cross-functional knowledge sharing, whereas formalization does not. The findings also indicate a moderating effect of cross-functional competition for lateral relations and informal networking but not for formalization or shared vision. Finally, organizational innovativeness partially mediates the relationship between cross-functional knowledge sharing and firm performance. These findings lead to several theoretical and managerial implications. •This study develops and validates a model of coopetition.•The study utilizes a sample of 224 large-sized firms in a transitional economy.•Lateral relations, informal networking, & shared vision relate to cross-functional knowledge sharing, formalization does not.•Cross-functional competition is a moderator of the aformentioned relationships.•Innovativeness partially mediates the relationship between cross-functional knowledge sharing and firm performance.