The relationship between the finance function and the marketing function : a qualitative study of Maltese listed companies

Abstract

Purpose: This dissertation aims to analyse the relationship between the finance function and the marketing function within Maltese listed entities. The objectives of this study are to obtain an understanding of the role the finance department (FD) and the marketing department (MD) play within their organisation; to gain an insight on the instances when the FD and the MD cooperate, compromise and conflict; and to explore the possible reasons for the way this relationship works. Design: The scope of this dissertation is to achieve a deep understanding of the underlying topic; therefore a qualitative approach to research was adopted. Semi-structured interviews as the chosen research method were conducted with a number of chief financial officers (CFOs) and marketing executives of listed entities. Theoretical saturation was applied so that interviews could continue to be conducted until no new insights could be obtained from having an additional interview. Findings: Findings that emerge from this dissertation focus on the role the FD plays in the business where CFOs concentrate mostly on prioritising, setting budgets, controlling costs, querying the other departments and looking for meaning in figures. Marketing executives play an important role in disclosing information, spending responsibly, and using their market research resources for decision making. Informal and constant interaction between CFOs and marketing executives takes place while carrying out their duties in each department. The relationship is built on trust, yet conflicting issues have also been underlined. Conclusion: Although executives are still aware of the traditional perceptions of the two departments, these are not followed in practice. The FD and the MD keep moving to a point where the two departments are seen as equals within their organisation. Both departments feel that they have a central role. This shows that the FD is no longer considered as being superior. Conflict arises due to personal relationships between the two departments rather than due to fundamental differences between marketeers and accountants. Strong personal business relationships are essential to build a certain level of trust, although the tone set by the organisation contributes to this sound relationship. Implications: From the essence of the conclusions and recommendations made, it is suggested that the good relationship between accountants and marketeers in the local scenario may be due to the small size of the population and therefore the familiarity between executives. Education is a solitary tool which can cater for the mismatch between the two departments as is the appointment of the right people with complementary personalities.