Impact of JIT-selling strategy on organizational structure

Purpose – This study aims to assess the impact of a JIT-selling strategy on organizational structure by generally replicating the previous work of Germain et al. Design/methodology/approach – In contrast to the sample population of logistics managers surveyed by Germain et al. this research draws on data from manufacturing executives with marketing responsibilities. More importantly, a major limitation of the earlier research, use of a single-item scale measurement of the JIT-selling construct, is overcome. A structural equation modeling approach was used to assess the impact of JIT-selling on the organizational structure dimensions of integration, performance control, specialization, and decentralization. Findings – Germain et al. found that JIT-selling impacts performance control, specialization, and scheduling decentralization but not integration. While the results of this study support earlier findings that JIT-selling impacts performance control and specialization, the results alternately find support for a relationship between JIT-selling and integration and refute the previous finding that JIT-selling is related to decentralization. Research limitations/implications – The findings generally support the proposition that adoption of a JIT-selling strategy will result in changes in organizational structure. Practical implications – Manufacturing managers working to strengthen relationships with customers through a JIT-selling approach should prepare for organizational change in terms of increased integration, performance control, and specialization. Originality/value – JIT strategies are being used to strengthen the operations/marketing interface within the manufacturing sector. Specifically, this study assesses the impact of the JIT-selling strategy on organizational structure in an effort to verify the work of Germain et al.