A Research Agenda for Strategic Alignment in Sales and Operations Planning

Abstract

This article addresses the challenge of achieving strategic alignment in sales and operations planning. A conceptual framework emerges providing the basis for research propositions to guide empirical investigation to improve understanding for practice. An integrative literature review was employed to synthesize a broad range of literature. With considerable attention given to the need for strategic alignment in sales and operations planning (S&OP), achieving this has proven difficult in practice. This article employs contingency theory to classify themes arising from existing literature into contingency, response, and performance variables. Delving deeper, resource-based view theory provides insight into the feedback loop between response and contingency variables and the application of dynamic capabilities view theory reveals a cyclical adjustment capability that supports a growth-oriented mindset. The findings provide insights into the organizational mindset shift from control to growth, which is required to achieve strategic alignment. Manufacturing organizations, including start-ups, small to medium enterprises, and large companies, struggle to achieve strategic alignment in S&OP and, therefore, fail to trigger longer term decision making. The conceptual framework provides guidance for managers to reflect on their S&OP practices and develop action plans to achieve strategic alignment to extract the full value from their S&OP processes.