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Existing theory posits that functional strategies need to be aligned with the overall business strategy and each other. This empirical study investigates whether firms' purchasing and manufacturing functions have a consensus regarding their competitive priorities and whether such a consensus leads to higher levels of performance. The results of the analysis of data collected from 180 pairs of manufacturing and purchasing executives from manufacturing firms in the US supports prevailing views on consensus and performance. These findings are discussed to help direct future research and practice.
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Pagell et al. (2002) studied this question.
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