While it has frequently been stated that decisions on marketing activities should be made
cross-functionally, there is no empirical evidence that shows benefits of performing marketing
activities in this way. This paper examines the link between the cross-functional dispersion of
influence on marketing activities and performance at the SBU level and considers dynamism of the
market which may moderate the strength of this relationship. Using data from a cross-national
study in three industry sectors, the authors find that cross-functional dispersion of influence on
marketing activities increases the performance of the SBU. They also find that the relationship
between the cross-functional dispersion of influence on marketing activities is negatively influenced
by dynamism of the market. This research thus provides empirical evidence for the positive
performance implications of cross-functional interaction in the context of marketing activities.
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