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Type Of Customer Relationships, Organizational Design, And Company Performance

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In this paper we examine how low and high performing companies operating in industrial markets differ in their organizational design, and how the type of customer relationships and the broadness of target market influence this design. The results of our empirical study, carried out within manufacturing companies, indicate that the commitment of employees, the effective interfunctional coordination, and the nature of incentive systems are the main discriminators between low and high-performers. Also, the type of customer relationship and the broadness of target market strongly influence the impact of these three components on the operational excellence of the company in a given context.

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