INTER-FUNCTIONAL COORDINATION: IMPORTANCE OF EMPLOYEE COMMUNICATION IN MARKETING ACTIVITIES OF ENTREPRENEURIAL COMPANIES IN A DEVELOPING ECONOMY
The main purpose of this paper is to explore the significance of inter-functional coordination (IFC) for the financial performance of the entrepreneurial companies in a developing economy. The objectives are: 1. To measure the level of the variables explaining IFC (IFC 1: Current and future needs of consumers are discussed inall of the concerned departments; IFC 2: When a department discovers something important about the consumersor the competition, it quickly informs the other concerned departments; IFC 3: There is extensive communication between different departments in terms of consumer experience and market changes); 2. To determine the average level of IFC; 3. To confirm the effect IFC has on profitability. The methodology included both quantitative and qualitative methods and, the research was done in entrepreneurial companies from the food production industry in Macedonia, as a developing economy. This research is a part of an ongoing project entitled: “Strengthening the business capacity of women entrepreneurs in Republic of Macedonia, as a developing country”. Data was analyzed with IBM SPSS19. The results show that companies of varied sizes demonstrate diverse level of implementation of IFC i.e. medium and large-sized companies have higher average levels of IFC than small companies. The results also confirm the meaningful relationship as well as the direct influence of the level of IFC on business profitability. The main limitation of this study is the small sample size and the fact that it analyses a single industry. However, the paper has some practical implications: to achieve higher financial performance, companies must adopt and implement inter – functional coordination as a part of the market orientation process. The value of the paper derives from the verification of the significance of the relationship between IFC and profitability, in a different business sector, with a different research subject from those analysed hitherto by the literature.
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