This study examines the relationships among cross-functionality, the fuzzy front end (FFE) and organisational performance. Specifically, it investigates how two distinct dimensions of cross-functionality – integration between functions (IBF) and multifunctional employees (MFE) – interact with the FFE in shaping performance outcomes. Drawing on the knowledge-based view, this study conceptualises cross-functionality as a knowledge resource and the FFE as a capability for resource utilisation.
Using data from manufacturing plants across 13 countries in the fourth round of the High Performance Manufacturing Project (2013–2016), this study employs partial least squares structural equation modelling to examine the direct, mediating and moderating relationships among FFE activities, cross-functionality dimensions and multiple performance metrics, including new product development (NPD) success, quality and customer satisfaction.
The results reveal that FFE activities significantly influence not only immediate NPD success but also longer-term outcomes such as quality and customer satisfaction. Moreover, the two dimensions of cross-functionality play distinct roles: IBF primarily serves as a knowledge resource that enhances FFE effectiveness, while MFE acts as a critical moderator, strengthening the relationship between FFE and performance outcomes.
This study advances the literature by (1) providing the first empirical evidence of FFE’s impact on long-term performance outcomes, (2) demonstrating how different cross-functionality dimensions distinctly influence the FFE–performance relationship and (3) offering a comprehensive framework for understanding the complex interplay between FFE activities and cross-functional integration in driving both immediate and long-term performance.
