Cross-Functional Teams and Social Identity Theory: A Study of Sales and Operations Planning (S&OP)

Achieving proper levels of integration across functional boundaries is a major challenge for firms. Rigorous cross-functional planning processes have arisen within companies in hopes of achieving greater levels of integration. Sales and operations planning is one such process designed to help companies better align customer demand with product supply. Yet, achieving success with such supply chain processes has continued to elude many firms. This research applies social identity theory to the study of sales and operations planning to see if fostering superordinate identity can help integration efforts in this unique cross-functional team setting. Results confirm the importance of superordinate team identity in achieving sales and operations planning performance.Furthermore, factors that support superordinate identity formation among teams are identified and discussed.