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Abstract Research in the areas of both manufacturing and marketing/sales have advocated the integration of several important interrelated decisions between the two functions (i.e. product development, process development, marketing/sales planning, and manufacturing planning decisions). The process of managing the strategic alignment between a firm’s business strategy, external environment, and the integration of manufacturing and marketing/sales decisions is very complex phenomenon that requires a level of analysis that has not occurred previously. This study examined the moderating effects of business strategy and demand uncertainty on the relationship between the integration of manufacturing and marketing/sales‐based decisions and organizational performance. The study found general support for the proposed model, suggesting that the impact of the integration of manufacturing and marketing/sales decision on organizational performance is moderated by a firm’s business strategy and demand uncertainty.
O'Leary‐Kelly et al. (2002) studied this question.