Evidence From Pakistani Export Industry Commerce Essay

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Knowledge management has established its innovative role as collaboration in the organizational departments ,specially sales & marketing for effectiveness & performance in the changing work practices. KM with innovation becomes the mainstay for the employees to share the new ideas and practice knowledge to demonstrate ability to remain viable in the demanding work environment. Knowledgeable employees could contribute in integrated organizational effectiveness.

The purpose of this study is to know whether knowledge management as collaboration between marketing and sales are linked with improved business performance and to highlight factors that are administratively related to this interface.

This study aims to explore the marketing and sales working relationship through quantitative research, survey of Pakistani Export companies through questionnaires is being used in this research study.

The research concludes that high level of organizational learning, Innovative knowledge, communication, minimizes interdepartmental conflicts, results as better business performance. This study has many implications for managers, for instance, for better sales and marketing department relations, top management must realize the importance of KM , which can help them to improve the Organizational performance . Top Leadership should provide such training programs and environment that encourage the worker to share the tacit knowledge. Globalization has changed the scenario of the market where not only management but also the marketing practices are changing over the period of time. Trends in the market are in the phase of continuous change and survivals of organizations are possible only if they have the competitive edge. Organizations are striving to make their products and services competitive, bring prudent changes in processes and procedures resultantly innovation could be brought through. Knowledge is recognized as an important weapon for sustaining competitive advantage and many companies are beginning to manage organizational knowledge.

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However, literature significantly supports hypothesis of this study, but it also raises additional research issues which are yet to be explored; similar model can be used in other industries of Pakistan to better understand the implications of this model.

Paper Type:

Empirical Paper

Keywords:

Knowledge Management, Innovation, Collaboration between sales and marketing, Organizational Learning, Business Performance

INTRODUCTION

Knowledge Management is a fountainhead for those organizations which brings up business environments turbulence into opportunities. The changing trends of market enable the organizations to perceive and actualize the opportunities available for them in the industry and managing this change by managing the knowledgeable resources. Strong intervention of modern technology paves out the opportunistic way for the organizations to enhance themselves in the spiral of the heights and their competitive positions in the market by acquiring the knowledge and disseminating it to the job roles by focusing the requirements of the customers (Schwartz and Mathew, 1999). The competitive advantage created and done through the resources of knowledge and managing the skills and abilities of resources could be in a way to avoid the temporary aspect of up scaling the organization. Knowledge management has become an appealing concept to the managers and organizational strategic heads to remain enacted with the expansionary activity towards the management of knowledgeable resources (Chalee and Yacine, 2008). Globalization has made an obligation on the organizations to use the information resources to develop a well structured and substantiated framework of knowledge management (Carl M. Wigg, 2007)

This has been the most important issue in business-to-business organizations that how to improve coordination and working relationship between marketing and sales department (Kotler, Krishnaswami, & Rackham, 2006). Empirical evidences on the topic of collaboration between sales and marketing in business-to-business organizations are very limited, although a fewer number of authors have tried to conceptualize the relationship of collaboration between sales and marketing departments (Brencic & Biemans, 2007).

The major cause that this area has been ignored until now is that previously marketing and sales department treated as separately e.g. both departments have their own goals, but the ultimate goal of both these two departments is to increase market share (Jensen & Homburg, 2007). Conversely, in multinational organizations, marketing and sales are commonly controlled as separate departments (Kotler et al., 2006) that execute different tasks (Shapiro, 2002). Kotler, Krishnaswami, & Rackham, (2006) entitled "Ending the War between Sales & Marketing." This review anticipates that marketing and sales do not always operate collaboratively to the profit of the organization.

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Every organization should improve the coordination and working relationships between marketing and sales department (Kotler, Krishnaswamy, & Rackham, 2006). Munn (1998) indicate that functions of marketing and sales departments are interlinked, hence these activities should be highly coordinated. Marketing depends on sales professionals to convey the marketing message to valuable customers in order to achieve higher market share (Chonko & Colletti, 1997). Furthermore, Blythe & Yandle (2000) identified that sales function are normally directly related with marketing functions to give a steady supply of potential customers with the help of their promotional actions. Consequently, sales and marketing have same ultimate goals to effectively target and sell their products and services in order to increase organization's profitability.

Problem Identification

Although this interface demonstrate the most curial relationships within an organization (Dawes & Jobber, 2000; Dawes & Massey, 2005), hence this importance have build up interest of academics and practitioners to explore issues regarding these two departments (Kotler et al., 2006; Rouzies et al., 2005). One reason of being ignored by organizations and customers generally considered sales and marketing as a single function (Webster, 1997), customers usually perceive about sales and marketing department that both departments performing similar tasks and functions.

In large organizations, sales and marketing department's role are very different for each other. For instance, the function of sales department is to stimulate and sell the products to the target customers. While marketing perform different functions, their major concern is identifying potential customers and markets. Furthermore, to integrate sales, distribution, and integrated marketing plans (Webster, 1997). Prior studies highlighted several negative aspects of marketing and sales departments (Dawes & Massey, 2005; Piercy, 2006; Kotler et al., 2006), e.g. usually poor coordination between marketing and sales results as in poor planning and goal setting (Olson et al., 2001; Kotler et al., 2006).

Prior studies have highlighted antecedents that cause high collaboration between marketing and sales department e.g. communication, market intelligence, management attitudes towards coordination, organizational learning (Ken Le, Meunier-FitzHugh, & Nigel F. Piercy 2007). Furthermore, interdepartmental conflicts should be minimized that both sales and marketing departments work with higher collaboration to achieve better results for business performance (Ken Le, Meunier-FitzHugh, and Nigel F. Piercy 2007).

The purpose of this study is to know whether superior levels of collaboration between marketing and sales are linked with improved business performance and to highlight factors that are administratively related to this interface. This research includes to the conceptualization by Jobber & Dewsnap (2000) and Rouzies et al., (2005) by providing an empirical investigation of antecedents that might influence collaboration between marketing and sales departments and their interrelated functions.

Problem Statement

The competitive scenario of the global market heads up with the emergent need for smart knowledge distribution along the organization. How collaboration between sales and marketing departments can be improved through KM to business performance. What remedial measures organizations should take to increase the productivity of these two essential internal departments in order to minimize conflicts?

Every day, companies and their knowledge workers are facing problems stemming from lack of smart knowledge sharing and distribution. Organizational personnel doing the same job and servicing an identical customer base turn out, versatile results due to which the competitive advantage generates. In-sufficient processes or requisite infrastructure that allows either sharing or transfer of best practices across the organization paves the way towards proper knowledge distribution among the organizational members and stakeholders. The ability to "smartly" distribute knowledge across the entire organization is therefore compelling drivers for knowledge management. It is imperative to ferret out the effects of knowledge management practices on the organizational effectiveness to keep the alacrity of an organization on the pinnacle.

REVIEW OF LITERATURE

Knowledge management can minimize the difference through collaboration between systems which allow people to learn from past decisions, both good and bad, and to apply the lessons learned to complex choices and future decisions (Paul Quintas, 1999). HR managers have deep focus on the attainment of full or highest degree of production levels. Knowledge management can help organizations know what they do know. Knowledge management support active and complete transfer of knowledge from one department to other & reduce the extent of repeated wasteful expenditure of resources and effort put into solving problems by both department simultaneously. Failed approaches and decisions often provide equally useful insights into what not to do. Retaining and actively using this knowledge of failures can steer resource allocation into promising directions.

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This study identifies five antecedents to collaboration between marketing and sales and anticipates a significant relationship between business performance and marketing and sales collaboration through Knowledge management. Interdepartmental innovative ideas sharing between the marketing and sales activities is depended on inadequately aligned objectives (Massey & Dawes 2005; Piercy 2006). In addition, some marketing and sales departments practice role uncertainty, and there might be a lack of recognizing of both departments' roles (Kotler, Krishnaswamy, & Rackham, 2006).

For that reason, it is anticipated that interdepartmental conflict will negatively influence collaboration between marketing and sales department. Cross-functional learning can guide to better collaboration between teams because information might conveyed through informal systems (Wilemon & Mayers, 1989). Consequently, organizational learning will have a positive impact on collaboration between marketing and sales. Market intelligence could be a method on which both marketing and sales can relay to accomplish combined success, and it is anticipated to encourage collaboration. Improved collaboration between sales and marketing possibly will be found on the better communications between the two departments.

The management attitude towards coordination between marketing, and sales is the main construct within the framework. Thus, top management should establish and encourage integrated working relationships between marketing and sales. In conclusion, where top managers succeed in integrating cross-functional activities organizations will get higher level of profits (Workman, Homburg, & Krohmer, 2002), this proposed that high levels of coordination and collaboration between sales and marketing will give better business results.

CONCEPTUAL MODEL

Management Attitude

Knowledge Management

Interdepartmental Conflicts

Business Performance

Collaborative role of Knowledge management

Organizational Learning

Innovation

COLLABORATION AND BUSINESS PERFORMANCE

The term "collaboration" suggested by Kahn's (1996) that collaborative essentials of mutual understanding, shared resources, collective goals, informal activity and common vision do have a significant influence on business performance. Focus is not only to think about integrations of these activities of marketing and sales. Kotler (2006), and Shapiro (2002) proposed, that marketing and sales departments have different functions or tasks which are performed by different people of these two departments. Although the ultimate goal is to maximize profits and make customers more loyal towards their brand but still marketing and sales have dissimilar or distinctive functions as well, which can't be ignored at the same time these tasks are interdependent to each other.

The main theme of this study is to more focus on collaboration between sales and marketing rather than integration. The foremost issue is to identify potential benefits through collaboration. Literature supports that there are operational benefits can be achieved through better internal collaboration (Spiro & McGee, 1988). It is also indicated that internal integration leads to superior performance (Webster, 1997), at the same time Tjosvold (1988) anticipate that collaboration and integration between functional departments results as competitiveness and productivity. Prior studies proposed that those organizations who promote better internal relationships leads to higher value for their target customers (Jaworski & Kohli 1990; Turnell & Morgan 2003). There is confirmation of strong relationship collaboration between sales and marketing departments or other functional department leads to enhanced business results.

H1: Collaboration between marketing and sales department has direct impact on business performance

Knowledge management

Knowledge management is a systematic way of organizing, planning, monitoring and development of the system, technology, process and people to control the concerns of creation, sharing, acquisition, dissemination, diffusion and utilization of information and provoking ideas to achieve strategic goals in relation to performance and improved processes (Peter, 2006). Knowledge management is highly interconnected and interrelated with intellectual capital of the organization which ultimately leads it towards the competitive advancement by innovation and enhancement in profits (Wong, 2005).

H2: There is significantly positive effect of knowledge management on organizational effectiveness

MANAGEMENT ATTITUDE TOWARD COLLABORATION

Practical specialization is vital for operational efficiency but it can only be done through building collaborative working relationships (Piercy, 2006). Olson and Viswanath (1992) proposed that role of senior management is very critical to provide such a collaborative working environment for functional departments. Top management should provide such training programs and environment that encourage functional departments to work together to get maximum productivity (Kahn, 1996). The process of building collaborative environment leads to collective vision (Senge 1990). Similarly Kotler, Krishnaswamy, and Rackham, (2006) proposed that senior management should organize resources which minimize the affect of interdepartmental conflicts. Major responsibility of senior management is to minimize interdepartmental conflicts between marketing and sales departments. Thus we hypothesized as follow

H3: Management Attitude toward collaboration has direct impact on business performance

Innovation

Herkema (2003) stated that knowledge processing within the organization is intended to create new knowledge to upgrade the products, processes and services. Innovation is the key output of knowledge management where the knowledge is acquired, disseminated and retrenched with an adoption that is embedded in products and services. Innovation is considered as a new idea, methodology and can be in state of a new product or service or process or technology related to change, newness that could be necessary and thorough. Gloet (2004) claimed that innovation is implementation of the discoveries and interventions and the systems through which new outcomes either in progression towards the products or processes or systems arises (Gloet and Terziovski, 2004). Knowledge management binds the organizations into continuous learning activities through which knowledge apprenticeship moves ahead to foster the innovation (Nonaka and Takeuchi, 1995; Pablos, 2002; Zhang et al., 2004). Innovation is the byproduct of the learning processes at organization and among the levels of management (Therin, 2002). Organizations involved with the knowledge management activities by leveraging all its resources for the attainment of best in their performance and leverage the enhanced capability to develop the innovativeness consternates towards innovation (Dickson, 1996).

H4: Innovative knowledge has direct impact on business performance

ORGANIZATIONAL LEARNING

Organizational learning is necessary to be competitive and profitable in the market. Organizational learning refers to structure and facilitates the development of new strategies that have potential to compete (Slater, Hult, & Ketchen, 2002). Effective learning involves experience and knowledge to integrate new concepts. Each member of the organization has the potential to add in learning (Cravens 1998). Organizational learning supports employees in groups that they can come up with their new ideas and these new ideas would result better for the organization (Crosson & Vera, 2004). Bunderson and Van der Vegt proposed that people from diverse backgrounds share new ideas, and when they work together, productivity would be increased. Learning is the sharing of knowledge, ideas, and concepts with others encourage collaboration among people. The intention is that marketing and sales required developing sharing behaviors. Thus, study hypothesized;

H5: Organizational Learning has direct impact on business performance

INTERDEPARTMENTAL CONFLICTS

Interdepartmental conflicts, the dissimilar goals, cross-purposes and not welcome each other's ideas & . Prior research identified that there are interdepartmental conflicts exits between marketing and sales department (Massey & Dawes, 2005). Blythe and Yandle define interdepartmental conflicts as a miss-match in functions in a way, that employee feel not comfortable working together. There are many causes behind lack of collaboration between marketing and sales, representatives of these departments have their own way of thinking, working, philosophies, and mostly having different backgrounds (Piercy, 2006). Thus, study hypothesized;

H6: Interdepartmental Conflicts are negatively associated with business performance

Integration between knowledge management and organizational effectiveness

Knowledge is a key tool to effectuate the performance of the organization and proper imbuement of knowledge acts as a rigor for the organizational effectiveness. Mullen (2003) claimed that the consistency in management of knowledge and continuous orientation towards the organizational learning enhances the organizational effectiveness and keeping abreast the innovative culture within the organization. The knowledge transferability in making innovation and process improvement is core component to maintain the effectiveness of organization (Amidon, 1997).

IMPORTANCE OF THE STUDY

This research study is about the role of Knowledge management as collaboration between the marketing and sales departments and market-orientation in small and large business-to-business companies from Pakistan exporting their products to different parts of the world. Even though it is mostly accepted that coordination among internal departments lead to organizational success (Kohli & Jaworski, 1990; Slater & Narver, 1994).

The collaboration between internal departments sales and marketing is directly related to the business success still under-researched. Furthermore, there is prove to highlight that this relationship posses lack of unity and even disagreements (Rouzies et al., 2005; Kotler, Rackham, & Krishnaswamy, 2006). It has been observed that most of the conflicts occurred due to difference of objectives and job differences (Donath, 2004; Homburg & Jensen, 2007).

It is proposed that due to low collaboration between sales and marketing departments lead to spoil overall business performance (Corstjens & Corstjens, 1999). Consequently, the significance of collaborative marketing and sales departments has been unnoticed, rather it is not only important to market orientation but it has potential benefits to overall business performance.

Scope of Study

This study has a wide scope in area of product as well as in service industry. This research has wide applicability in the area of new product development and marketing as well as capturing and converging new customers towards the product. Knowledge management has colossal effects in the product development phases through which organizational internal and external entities can make and prioritize the strategies for implementation. This study has wide applicability in the service sector like hotel industry, banking sector and consultancy service providers.

OBJECTIVES

The objective of this study is to know whether the role of Knowledge management as collaboration between marketing and sales are linked with improved business performance and to highlight factors that are administratively related to this interface. This research includes to the conceptualization by Jobber & Dewsnap (2000), and Rouzies et al., (2005), by providing an empirical investigation of antecedents that might influence collaboration between marketing and sales departments and their interrelated functions.

HYPOTHESIS:

H1: Collaboration between marketing and sales department has direct impact on business performance

H2: Knowledge Management as Collaboration between marketing and sales department has direct impact on business performance

H3: Management Attitude toward collaboration has direct impact on business performance

H4: : Innovative knowledge has direct impact on business performance

H5: Organizational Learning has direct impact on business performance

H6: Interdepartmental Conflicts are negatively associated with business performance

RESEARCH METHODOLOGY

A sample of 10 Export factories from Pakistani business-to-business organizations is included, although Pakistani industrial organizations are not very large in numbers as compared to International organizations. 10 Export companies of Faisalabad are selected for this research study, who deals in export of Textile value added products. Authors personally visited these companies in order to collect reliable data. 150 surveys form get filled from sales and marketing departments of these companies. Faisalabad export industry is selected because they are very successful all over the world in export of all kind of textile products. Majority of the respondents lies in the age group of 30-40 and 20-30, 47% respondents belongs to the age group of 30-40 and 41% respondents belongs to the age group of 20-30.Other details of age group are shown in appendix 1 and bar chart1.

The respondents who are working in sales and marketing departments have the minimum experience of 3 years. The maximum respondents got five years working experience in their respective departments, other details of respondents' experience are shown in below chart.

Sample and Sampling Technique

The sample size consists of 180 respondents those will be selected from the population of 10 Export factories. Sample size symbolized that larger the sample size provides more satisfactory results for the study (Nesbary, 2000). Patten (2004) stated that it is core issue to select an unbiased sample.

Selection of the Sample Size

Sampling technique used for this study is random sampling of the said entity. Leedy and Ormrod (2001) stated that sampling technique is one that is applied to the study which considers that the information gathered along various factors engenders an opportunity to understand the characteristics of the research study.

INSTRUMENTATION (Measuring Instruments)

The scales used for measuring the variables and items/elements in the study are the part of this section. The measurement scale used by (Cummins, J.N. 2004), is adopted to measure the role of knowledge as collaboration within the organization consists of 3 items and dissemination is measured with 3 items and scale is adapted from (Cummins, J.N. 2004). The innovation scale consist of (5) items which is adopted from the study of (Alvaro, 2009). The scale for process improvement is adopted from the study of (Lopez, 2009). The competitive advantage in the organization is measured on a 4 item scale and adopted by (Morgan, 1997).

Questionnaire /Survey and Scale

The study's instruments comprised of elements that encompasses information about the employees in the given sector. Each item is measured on the five-point Likert scale with the ranges of "from strongly disagree" to "strongly agree", with the numbers of the scale being defined as follows:

1 = Strongly disagree

2 =Disagree

3 = Neutral

4 = Agree

5 = Strongly agree

The questionnaire/Survey is enclosed with this study as an Appendix - A

Section 1

Responses will be measured through research instrument that consists of two parts. The first part of the research questionnaire/Survey reveals the demographic profile of the participants. The main items of the demographic profile are „Gender‟, „Age‟, „Level of Education‟, and „Experience Level‟.

Section 2

The second part of the questionnaire/Survey comprises of various measurement scales of the variables explained in the study. It covers the elements of knowledge management in context of collaboration and performance improvement ,also it explains the organizational effectiveness and its sub constructs.

Procedures

The questionnaires/Survey will be distributed to different export factories of textile industry by personal visits. Participants will be given the extended opportunity to complete these questionnaires/Survey within five to seven days. They will be requested to complete the filled questionnaire/Survey. The human resource control office will be requested to synchronize action with the personnel and give advice, as necessary. Individual relationship assists in securing the data within the established time period. On the basis of filled questionnaires/Survey the data will unruffled and sorted. Unfilled or mistreated questionnaires/Survey will separated from the proper ones.

Collection of Data

According to Bless and Higson-Smith (2000), there are three avenues of information selection, namely: the questionnaire, the interview and surveys. Sekaran (2000) proposed that surveys are the most powerful information selection process provided that the specialist knows exactly what is required and how to evaluate the factors of interest. Questionnaires/Survey can be applied individually by being sent to the participants or even digitally allocated according to the needs of the situation (Sekaran, 2000). A list of all of the professionals and expert workers in the sample will acquired from the HR Managers of all export factories. For the requirements of this research, survey will be used to collect the necessary information. General guidelines on completing the questionnaire and presenting an emphasis regarding the value of responding to all questions will be involved.

Securing Data

Once the questionnaires/Survey get completed, the researcher then coded the responses found on each questionnaire/Survey. These scores and codes were assigned to each question for the analysis and for the segregation of the data into particular fields. The scores will then captured onto a SPSS spread sheet for analysis (in SPSS 20.0V). The resulting analysis of the data will be discussed further in the next chapter.

Cronbach's 'alpha co-efficient'

Cronbach‟s Alpha Co-Efficient is generally associated with inner excellence (De Vellis, 1991). The Cronbach‟s Alpha is considered as a Co-Efficient Alpha and its value varies from 0 to 1. Sekaran (2000) suggests that when determining Cronbach‟s Excellence Co-Efficient, reliabilities that are less than 0.6 are regarded inadequate, reliabilities within 0.7 varies are regarded as satisfactory and those coefficients that are over 0.9 are regarded as excellent.

Testing of Hypothesis

The research design provides key rules for testing of hypothesis. For this coorelation is performed to analyze the relationship among the variables (Boyd, Westfall and Stasch, 1985) and the effect of variables among each other (Bless & Kathuria, 1993). Correlation ranges from +1 to -1 and describes the strength of the relationships among the variables (Bryman and Cramer, 1990). Coefficient value above 0.5 to 0.8 shows average relationship and below 0.5 is weak rather above 0.8 is strong (Devore & Peck, 1993).

Statistical Tool SPSS

Information would be examined using inferential research whereby outcomes would be generally based on the foundation of the information gathered from the example. Rates and wavelengths would be used for the specific data in the form of a group. The analysis of variance (ANOVA) would be used to find the factor among the various factors. Data software program precise Statistical Package for Social Sciences (SPSS) would be used to perform detailed analysis through regression.

ANALYSIS AND RESULTS

This chapter provides insight of the data and its findings after field survey analysis. Analysis of data is done through SPSS. The data was elucidating the factors contributory towards the knowledge management and its effects on competitive advantage.

Table - 4.1: Gender Demographics

Gender

No Of Respondents

%age

Male

127

85.3

Female

23

14.7

Total

150

100

The above Table 4.1 depicts the demographic analysis of gender of the employees those are the respondents of the study and employed in different textile factories and its Branches in Faisalabad. The results of the aforementioned table further provide the sight that the total survey respondent from 150 consists of 127 male participants and 23 female participants. The results further shows that male participants responded more actively as compared to female participants. The ratio of males is five times greater than those of females in the hotel industry. Sample illustrates 14.7% female and 85.3% male.

Table - 4.2: Age Demographics

Age Group

No Of Respondents

%age

30-40 years

67

45%

25-30

35

23%

20-30

48

32%

Total

150

100%

The above Table 4.2 depicts the demographic analysis of age of the employees those are the respondents of the study and employed in different textile factories from Faisalabad. The results of the aforementioned table further provide the clear identification that the total survey respondent from 150 in which the participants within the age group of 30 to 40 years are 45% showing 67 number of employees. The results further shows that participants from the age group 25-30 years of age covers the 23% showing 35 numbers of employees & the age group 20-30 are 32% showing 48 numbers of employees for this study group.

Table - 4.3: Education Demographics

Education

No of Respondents

%age

Post Graduate

98

65.33

Graduate

52

35.67

Total

150

100%

The above Table 4.3 depicts the educational demographic analysis of the employees those are the respondents of the study and employed in different textile factories from Faisalabad. The results of the aforementioned table further provide the clear identification that the total survey respondent from 150 in which the participants with post graduation qualification are 65.33% showing 98 number of employees. The results further show that participants with graduation qualification cover the 35.67% showing 52 numbers of employees for this study group.

Table - 4.4: Experience Demographics

Experience

No of respondents

%age

Below 5 years

79

52.67

5- 10 years

44

29.33

10 to above

27

18

150

100%

The above Table 4.4 depicts the demographic analysis of experience of the employees those are the respondents of the study and employed in different textile factories of Faisalabad. The results of the aforementioned table further provide the clear classification that the total survey respondents are 150 in which the participants having the experience below five years shows 52.67%where as the experienced personnel from 5 to 10 years covers 29.33%. Whereas the experience of employees 10 to above years covers the part of 18% of survey subjects.

Regarding the SPSS results to check the reliability & validity of the variables ,Still some work need to be done which is under process. Further to check the correlation between variable Regression analysis will be done using SPSS .

To check the significant relationship of collaborative role of knowledge management in business performance ,complete results of regression analysis will be submitted before the publication.

RESULTS AND DISCUSSION

We selected five independent variables, one mediating and one dependent variable. Independent variables are (Management attitude toward coordination, Interdepartmental conflicts, Knowledge Management, Innovation and Organizational Learning), mediating variable is collaborative role of KM in sales and marketing, and Business performance as dependent variable.

Management attitude toward coordination and business performance has a positive relation (r=0.81, n=100, p<0.01) strong relationship between these two variables i.e. if Management Attitude toward coordination increase, business performance will be better. Innovation increase the business performance (r=0.83, n=100, p<0.01) has strong relation and Innovation impact on business performance is at high ratio. Interdepartmental Conflicts and business performance has a negative relation (r= 0.16, n=100) it means that if interdepartmental conflicts increases it will decrease the business performance Organizational learning and business performance both have a strong positive relation (r=0.095, n=100, p<.01). If organization more concerned more about organizational learning it will definitely increase business performance. Knowledge Management and business performance has a positive relation (r=0.95, n=100, p<0.01) strong relationship among these two variables i.e. if the knowledge of the organization increase, business performance will be better. Collaboration between sales and marketing increase the business performance (r=0.41, n=100, p<0.01) has a moderate relation and impact on business performance is at moderate ratio.

In first equation, we want to check the effect of all variables on Business Performance. 2.251 is a fixed value, which will occur in every situation. It means that if there is no management attitude toward coordination and effect of other variables then how much management advocates the business performance. The coefficient of retailer background is 0.048that if management attitude toward coordination is going upward business performance will be increased. The R square value for all variables is between .02-012, which shows that there is a mediating effect exit of collaboration between sales and marketing department.

Management Attitude toward collaboration has direct impact on business performance, it has significant impact on market intelligence and interdepartmental conflicts. Management plays an important role to provide such a platform where collaborative relationship between sales and marketing should be promoted. Top managers should promote aligned and integrated goals between functional departments.

Innovation in products & ideas has direct impact on business performance. Innovation is the main construct in this study, it give life to the organization in competitive era. It is also helpful to minimize the dependencies on existing products & strategies. Flow of innovative ideas gives positive results for the organization (Kotler, Krishnaswamy, & Rackham 2006).

Knowledge Management is vital for any organization especially for exporting business industries; it gives a better understanding of market, products ,customer requirements & practices & trends of market in a effective way. Knowledge management is an efficient way of organizing, development, monitoring and development of system, technology, process and people to control over the concerns of production, sharing, knowledge, distribution, dissemination and use of knowledge in the organization. Knowledge is an essential instrument to effectuate the performance of the organization. (Chalee and Yacine, 2008)

Organizational Learning is a key construct in this study; Organizational learning refers to structure and facilitates the development of new strategies that have potential to compete (Slater, Hult, & Ketchen, 2002). Effective learning involves experience and knowledge to integrate new concepts. Furthermore, organizations grow, and sharing ideas, working together would be better enhanced.

Interdepartmental Conflicts are negatively associated with business performance. It happened when interdepartmental conflicts increase, collaboration between marketing and sales is more likely to be decreased. Effective learning involves experience and knowledge to integrate new concepts. Each member of the organization has the potential to add in learning (Cravens, 1998). Organizational learning supports employees in groups that they can come up with their new ideas and these new ideas would result better for the organization (Crosson & Vera, 2004).

MANAGERIAL IMPLICATIONS

This study has many implications for managers, for instance, for better sales and marketing department relations, senior management need to create a positive coordination, which can help them to reduce interdepartmental conflicts. Top management should provide such training programs and environment that encourage functional departments to work together to get maximum productivity. Furthermore, senior management should organize resources which minimize the affect of interdepartmental conflicts. Major responsibility of senior management is to minimize interdepartmental conflicts between marketing and sales departments. Routine meetings should be integrated that higher level of information flow.

CONCLUSION

The study concludes strong support for the hypothesis "Collaborative Role of Knowledge management between marketing and sales department has direct impact on business performance". Even though this hypothesis has been anticipated in the literature that collaboration between marketing and sales department has direct impact on business performance (Rouzies et al., 2005; Kotler, Krishnaswamy & Rackham, 2006; Jobber & Dewsnap, 2000), this is the first empirical investigation that collaborative role of Knowledge management between marketing and sales department has significant impact on business performance. These findings propose that organizations should consider the role of KM to develop the relationship between sales and marketing department. We conclude that although these independent variables have direct impact on business performance but it is only the Knowledge management who collaboratively plays a pivotal role in improving the organizational performance.

SCOPE FOR FURTHER RESEARCH

However, literature significantly supports hypothesis of this study, but it also raises additional research issues, which are yet to be explored, similar model can be used in other industries of Pakistan to better understand the implications of this model. Secondly, a large sample in which marketing and sales department staff members should be included. Therefore, this study could be tested in other industrial areas of Pakistan.