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This study is to explore the impact of information technology (IT) on the interaction between manufacturing and marketing. Literature reviews are initially conducted to understand the interfunctional goal gap and activity conflict that exist between the two departments which invariably constitute achievement on corporate competitiveness. The application dimension of IT function is introduced as a useful tool in reducing the degree of interfunctional gap through advanced IT which in turn will reduce the conflict on the activity level. Thus, the ultimate end might lead to positive effects on corporate competitiveness. In this paper, we discuss the interaction of manufacturing and marketing departments and the resulting capacity of IT in six firms, located in the HsinChu Science‐Based Industrial Park (HSIP) in Taiwan. HSIP is referred to as Taiwan’s Silicon Valley. This study’s methodology is based on a case study. Deep analysis of the six cases leads to ten hypotheses.

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