Aligning governance mechanisms and firm capabilities for omnichannel integration in manufacturing

Purpose Omnichannel integration is vital for manufacturing firms aiming to gain a competitive edge in complex business-to-business (B2B) settings. Building on resource orchestration theory, this study examines how two governance mechanisms, namely formalization and centralization, influence omnichannel integration and explores how marketing and technology capability moderate these effects. Design/methodology/approach Based on multi-respondent survey data from 616 top managers in 308 Chinese manufacturing firms, this study employs hierarchical regression analysis to test hypotheses and shed light on the interactions among governance mechanisms, firm capabilities and omnichannel integration. Findings The results indicate that formalization significantly promotes omnichannel integration, while centralization has no significant effect. Furthermore, marketing capability strengthens the impact of formalization on omnichannel integration and technology capability enhances the effect of centralization. Originality/value This study extends resource orchestration theory to the omnichannel context by offering new evidence on how firms can align channel governance mechanisms with internal capabilities to achieve successful integration.