Strategies for modern operations management

Lean and agile supply chain strategies: the role of mature and emerging information technologies

Purpose

The significant changes that supply chains (SCs) are undergoing and the emergence of disruptive technologies have led to a growing effort to integrate novel and mature technologies into existing SC strategies. Thus, this study investigates the relationships between mature information technologies (ITs), emerging IT and the lean supply chain (LSC) and agile supply chain (ASC) strategies.

Design/methodology/approach

An empirical study based on structural equation modeling of survey data from 256 Spanish focal companies has been conducted to test six hypotheses.

Findings

Drawing on resource orchestration, our results point to mature IT use being an enabler of both LSC and ASC strategy implementation. The results also show an LSC mediating effect on the relationship between mature IT and ASC when SCs follow both strategies. Also, the implementation of emerging IT requires a process of consolidation over time to be genuinely useful as a facilitating mechanism for developing both the lean and agile strategies along the SC. In this sense, a suitable mix needs to be orchestrated between emerging and mature IT.

Originality/value

This study sheds light on the relevance of the mature IT and emerging IT in the context of two SC strategies (lean/agile) and provides practical and theoretical implications.

Analyzing the Lean Six Sigma enabled organizational performance to enhance operational efficiency

Purpose

The aim of this analysis is to review the Indian manufacturing organizations practicing Lean Six Sigma (LSS) tools/techniques with an objective of monitoring the performance of an organization and to develop recommendation for strategies to benchmark organizational operational efficiency.

Design/methodology/approach

This study offers insights of the LSS performance measurement aspects of the Indian manufacturing organizations based on Data envelopment analysis (DEA) approach. The five inputs and two outputs are considered on the basis of literature review and discussed with the practitioners.

Findings

In this analysis, the relative efficiency score of 18 Indian manufacturing organizations has been determined in order to assist evaluation of the impact of monetary investment on the outputs. The present analysis not only investigates the optimum level of input variables but also lays down a significant observation that an organization having higher profit and inventory turnover ratio is not necessarily an efficient organization.

Practical implications

The results assist to determine the best practice units, potential source of inefficiency and deliver beneficial data for the consistent enhancement of the operational efficiency. The DEA results assist managers and decision makers to derive appropriate strategies to enhance their performance with reference to the efficient organization and to regard it as their role model.

Originality/value

This analysis renders a DEA based framework of LSS practicing Indian manufacturing organizations. The framework is unique in terms of its input-outputs variable selection and measurement procedure.

Servitization impact on performance moderated by country development

Purpose

In recent years, “servitization” has been studied extensively; however, as studies of the impact of servitization on firm performance offer mixed results, the conditions under which the relationship between servitization and performance becomes more significant are contested in the literature. These mixed results have led to the term “service paradox.” The paper aims to discuss these issues.

Design/methodology/approach

This study investigates servitization in the assembly industry based on a multi-country survey covering 539 industry plants in 22 countries.

Findings

The study contributes to the research on servitization by adding a contextual perspective to this relationship, taking into account level of development of the country in which a firm is located. Besides confirming the correlation between the servitization and performance, our study unveils a counter-intuitive result: a medium level of development of the country in which a firm is based corresponds to a stronger relationship between servitization and firm performance, whereas higher levels of development seem to diminish the increase in performance.

Social implications

This study balances out the focus in servitization on advanced economies and help to unveil its benefits in developing countries. Fostering servitization in developing economies can lead to social impact resulting from job shifts from manufacturing to service and the correlated implications for workers’ training and higher motivation experienced in service-based jobs.

Originality/value

Our study unpacks the “service paradox” and indicates that industry plants in developing countries can still harness the benefits of being first-movers, whereas, in developed countries, servitization may have become an order qualifier rather than a factor of differentiation.

Servitization and sustainability actions. Evidence from European manufacturing companies

Servitization is a process adopted by some industries and companies to create competitive advantage and increase the value of physical products by adding services. Manufacturing companies may decide to integrate a product-service system into their activities. However, there is no clear evidence of the effects of servitization on performance or sustainability, particularly in a circular economy. The aim of this study was to assess the potential impact of servitization on sustainability in a sample of 208 European listed manufacturing companies by investigating corporate sustainability disclosure, environmental performance, and policies. Using the business descriptions in the Bloomberg database, we identified two groups of companies: "pure manufacturers" and "non-pure manufacturers." We examined potential differences in sustainability between the two groups resulting from servitization. Data were collected for the fiscal year 2016. Our findings suggest that servitization leads to improved energy consumption and therefore enhances environmental performance. However, servitization had no effect on corporate sustainability disclosure and other environmental policies such as environmental assurance, emissions reduction policies, and environmental supply chain management.