Collaborative Capability and Organizational Performance: Assessing Strategic Choice and Purity

A frequently asked research question is, “Does cross-functional collaboration improve firm performance?” The findings are mixed. Much research reports a positive relationship. Some research finds a negative relationship. Other research argues that the question is not so easy to answer. The fact that boundary conditions remain underexplored may provide the key to reconciling divergent findings. We assess the potential moderating role of strategic choice and strategic purity on the collaboration-performance linkage.

Drawing on Constituency-Based and Organizational Conflict theories, we hypothesize various aspects of strategy (orientation and purity) as direct influences on a firm's collaborative capability as well as moderating influence on the collaboration-performance linkage. Hypotheses are tested utilizing survey responses from European supply chain managers and a multilevel model. We find that while the differentiation strategy moderated the collaboration-performance linkage, counterintuitive results associated with strategic purity are explained by strategic intensity. This suggests that collaboration does not passively align divergent goals among multiple constituents of the firm. Rather, proactive alignment is required as a superordinate enabler. These results are found to be true regardless of strategic purity.