Understanding how Formal and Informal Communication affect Purchasing, Manufacturing and Logistics Integration

Many theoretical contributions and lots of empirical evidence suggest that there are benefits to be gained from integrating purchasing, manufacturing and logistics. Though organizational and operations management scholars recognize that communication is a key antecedent of internal integration, little field research has been conducted on how companies actually create internal integration by leveraging on formal and informal communication over time. Based on a case study of a leading company in the Italian mineral water and soft drink industry, this paper seeks to fill this gap as it provides a model explaining how the interaction among formal and informal communication mechanisms can facilitate or hinder internal integration. The research provides a better understanding of the complex net of interactions among formal, informal communication and integration that managers can use as a guidance to properly address improvement initiatives.