Company-specific production systems and competitive advantage

Beyond efficiency: the role of lean practices and cultures in developing dynamic capabilities microfoundations

Purpose

The purpose of this study is to theorize and test the relationships among lean operations and lean supply chain practices, learning- and innovation-oriented lean cultures and dynamic capabilities (DCs) microfoundations. Further, this study aims to assess the association of DCs microfoundations with process innovation.

Design/methodology/approach

The researchers combine primary data collected from 153 manufacturing firms located in five continents using a survey designed for the purpose of this study with archival data downloaded from the Bureau Van Dijk Orbis database and test the hypothesized relationships using structural equation modelling.

Findings

Results support the contribution of lean operations and lean supply chain practices to the development of DCs microfoundations, which further lead to greater process innovation. Additionally, while a learning-oriented lean culture positively moderates the relationships between both lean operations and lean supply chain practices and DCs microfoundations, an innovation-oriented lean culture only moderates the relationship between lean operations practices and DCs microfoundations.

Practical implications

This study identifies DCs microfoundations as the key mechanisms for firms implementing lean practices to achieve greater levels of process innovation and the important role played by lean cultures. This study provides direction for managers to put in place DCs through lean implementations, enabling their firms to be ready to respond to challenges and opportunities generated by environmental changes.

Originality/value

While previous research has confirmed the positive effects of lean practices on efficiency, the role of lean practices and cultures in developing capabilities for reacting to environmental dynamism has received little attention. This study offers an empirically supported framework that highlights the potential of lean to adapt processes in response to environmental dynamics, thereby extending the lean paradigm beyond the traditional focus on operational efficiency.

Re-conceptualising Total Quality Leadership: a framework development and future research agenda

Purpose

The aim of this paper is to theoretically explore the concept of leadership in a Total Quality Management (TQM) context by developing a new theoretical framework of understanding Total Quality Leadership (TQL) as well as by opening the dialogue in researching further key elements of TQL.

Design/methodology/approach

The approach that the paper adopts is conceptual. Based on exploration of the wider management and leadership literature of empirical and theoretical studies, this paper develops a framework of TQL.

Findings

The suggested TQL framework is composed by three main pillars, namely the proactive, adaptive and the relational. The former consists of elements like anticipation of current business environment complexities and filtering of information that enhances practice decision making. The second pillar refers to adaptation, autonomy and feedback while the last one emphasises on the importance of aspects like social interactions, engagement and empathy. The paper explains why the specific pillars with the additional elements are critical for TQM success.

Originality/value

Given the tremendous challenges that organisations face due to increased complexity and demanding competition of the business environments globally, the role of leadership as the major “soft” aspect of TQM approach, seems to be vital more than ever. But the type of TQL appropriate to enhance total quality success nowadays, is still (and should be) under continuous exploration. This conceptual study attempts to provide new theoretical insights of TQL as well as to open the dialogue around the main elements consisting of TQL and how the future research agenda is formulated.

Green Manufacturing: An Assessment of Enablers’ Framework Using ISM-MICMAC Analysis

Manufacturing is one of the biggest drivers of a country’s economic growth. Nevertheless, due to globalization and flourishing consumer markets, the technological influx in manufacturing evolution poses a significant threat to climate change. To deal with the situation, green manufacturing came forward to play a vital role in lowering the impact of mass production on the global environment. The qualitative research based on expert opinion is used to have viewpoints for the implementation of green manufacturing based on green supply chain manufacturing (GSCMEs) enablers. The study, in this regard, focuses on exploring the key enablers adopted by the manufacturers to embrace green practices by using framework based on Interpretative Structural Modelling and Cross-Impact Multiplication Applied to Classification (MICMAC) analysis. Results indicate that economic constraints and the regulatory framework have high driving power and less dependency power. Researchers provide managers with a new outlook on the future towards building an eco-friendly supply chain and gaining a competitive edge over their competitors.

Mediating role of manufacturing strategy in the competitive strategy and firm performance: evidence from SMEs

Purpose

This paper examines the mediating role of manufacturing strategies in the relationship between competitive strategies and firm performance.

Design/methodology/approach

This study gathered 250 responses from firms in a developing country's key manufacturing sectors, including mechanical, electronics, automotive, textile and food. First, descriptive statistics were applied to fix outliers like respondent biases, missing values and normality issues. Second, exploratory factors analysis (EFA) ensured data adequacy and homogeneity through Kaiser–Meyer–Olkin (KMO) and Bartlett tests. Finally, confirmatory factors analysis (CFA) was used to identify the interactions (direct, indirect and total effects) between latent variables representing manufacturing strategies (quality, cost, delivery and flexibility), competitive strategies (cost-leadership and differentiation) and firms' performance (sales growth and profitability). In total, two structural equation modelling (SEM) models (SEM-I, SEM-II) were created to test the hypotheses.

Findings

Of the 40 items identified by the literature review, four were outliers, and three could not satisfy the EFA criteria (eigenvalue >1). Only 33 items could therefore reach CFA. SEM–I and SEM-II study results found no direct relationship between competitive strategies and firm performance (−0.03 = β = 0.08; p > 0.05). However, the findings revealed that cost-leadership could be an appropriate strategic choice and improved firms' performance if the quality and delivery are focussed (0.20 = β = 0.87; p < 0.001). While competitive strategies impact manufacturing strategies positively, the latter is only a mediator between the cost-leadership strategy and the firms' performance.

Originality/value

This research shows that the cost-leadership approach currently seems viable; however, flexibility and cost requirements were not satisfied due to infeasible product differentiation. These results will be beneficial to executives interested in investing in India's industries.

The relationship between investments in lean practices and operational performance

Purpose

Prior research has shown that operational intellectual capital (OIC) and investments in lean practices (ILP) lead to better operational performance. However, there have been no empirical studies on the synergetic effects between OIC components and ILP. More specifically, the question – can the efficacy of ILP be increased through OIC? – has not been studied. Accordingly, the purpose of this paper is to report the empirical results of potential synergetic effects between OIC, as a knowledge-based resource, and ILP.

Design/methodology/approach

The empirical data used for this study were drawn from the fifth round of the Global Manufacturing Research Group survey project (with data collected from 528 manufacturing plants). The hypotheses are empirically tested using three ordinary least square (OLS) models.

Findings

The authors’ findings highlight the importance of leveraging a system of complementary knowledge-based resources (OIC dimensions) and addresses the need for the reformulation of lean theory in terms of the emergent knowledge-based view of the firm. The results facilitate greater understanding of the complex relationship between ILP and operational performance. Building on the contribution of Menoret al.(2007), the authors argue that OIC represents a strategic knowledge-based resource that is valuable, hard to imitate or substitute and, when leveraged effectively, generates superior operational and competitive advantage.

Practical implications

From a managerial standpoint, this study provides guidelines for managers on how to leverage OIC to enhance the efficacy of ILP. The authors argue that firms consider investing in OIC to increase the return from ILP, which, in turn, will enhance their operational performance and provide competitive advantage. The authors findings provide strong evidence of the importance of human, social and structural capital to enhance the efficacy of ILP.

Originality/value

This is the first research paper that extends the application of the intellectual capital theory in lean literature, and argues that the OIC contributes to the efficacy of ILP. The analysis facilitates greater understanding of the complex relationship between OIC dimensions, ILP and operational performance.

Can continuous improvement lead to satisfied customers? Evidence from the services industry

Purpose

To achieve higher customer satisfaction (CS), companies implement continuous improvement (CI) programs, regardless of the growing evidence of their failure to achieve declared goals. The purpose of this paper is twofold: first, to identify whether companies are able to improve CS through the application of CI; and, second, to identify what organizational practices are able to facilitate the impact of CI on CS.

Design/methodology/approach

To test the developed assumptions, the study uses the structural equation modeling technique. The data for analysis were collected from 304 service companies via a custom web-survey.

Findings

The research confirms the direct positive impact of CI on CS. Further, the study demonstrates that management commitment and rewards system that encourages employees to participate in CI play the major facilitating role in improving CS through CI. These practices accompanied by quality-oriented culture and employee training in the improvement tools provide necessary infrastructure to sustain CI in the companies over time. Additionally, regardless of the vital role of goal setting for CI established in previous research, the proposed study finds a limited ability of goal setting, as compared to other organizational practices, to facilitate CI–CS relationship.

Originality/value

The study contributes to the scarce field of research on CI implementation in the services environment. Further, the research assesses CS as a variable of interest, as opposite to the previous studies, considering CS as a part of the composite variable. The research assesses the impact of the training in CI methodology on the CI–CS relationship, while previous research focuses on the general, work-related training. The findings provide an important basis for further academic work in the area of quality management. The identified practices can serve as guidance for managers, implementing CI in their companies due to the high fit of the proposed model.

A holistic model for inter-plant knowledge transfer within an international manufacturing network

Purpose

This paper aims to provide a holistic view to support the choice of appropriate strategy for conducting a knowledge transfer (KT) project in an international manufacturing network (IMN) environment. It proposes a model that includes multiple aspects of a KT project along with guidelines on each aspect.

Design/methodology/approach

To achieve the research goals, multiple case study method was adopted. Data have been collected by conducting semi-structured interviews regarding five KT projects in three multinational corporations. Data were triangulated by means of comparisons to complementary data acquired through observations and archival documents.

Findings

The results of this paper detail the key issues of five KT projects. Furthermore, the paper proposes an aggregated model comprising the main aspects and strategies for a KT project within an IMN.

Research limitations/implications

Despite the abundant research on KT area, not many research projects provide holistic views on KT process. The focus has rather been sectional and concentrated on each specific aspect within the KT.

Practical implications

The paper guides practitioners to identify multiple aspects in KT that will eventually increase the odds for successfully performing such projects.

Originality/value

The proposed learning network model improves the performance of KT projects by providing a holistic view including several factors that the organization should emphasize to succeed with inter-plant KT.

Visual management for a dynamic strategic change

Purpose

Strategic changes in an organization will face challenges not only related to the changes as such but also with regard to how the vision of the future is interpreted and understood by the organization. Visual management is a field of research that could contribute to change management research as a means to facilitate management of the dynamics in a change process and to facilitate the process of communication. The purpose of this paper is to problematize episodic change processes with regard to communication and to contribute with a proposed model on how to facilitate dynamic strategic change management using visual management.

Design/methodology/approach

The paper uses an interdisciplinary approach by linking change management literature to visual communication to be used for visual management.

Findings

A proposed model presents how a dynamic episodic change process can be managed in terms of visual management, potential pitfalls to avoid, and what ambidextrous capabilities are needed throughout the complete episodic change.

Research limitations/implications

The proposed model is still yet theoretical, based on a literature review of dynamic change management and visual communication. Future research will validate the model in practice to confirm its robustness.

Practical implications

An implementation of visual management in Kotter’s (1995) eight steps on how to strategically manage change in combination with theories on ambidexterity and episodic change is suggested.

Originality/value

The paper contributes to how visual management can support change management by combining visual communication and change management.

Seeking competitive advantage with service infusion: a systematic literature review

Purpose

– The purpose of this paper is to analyze how the service infusion literature explains competitive advantage through services. The four strategic management theories – competitive forces, the resource-based view, dynamic capabilities, and relational view – are applied in the analysis.

Design/methodology/approach

– A systematic literature review analyzes the links between the service infusion and strategy literature.

Findings

– The review reveals that although discussion of service infusion applies strategic management concepts, the stream lacks rigor with respect to construct definition and justification. Additionally, contextual variables are often missing. The result is an over-emphasis of contextually bound measures, such as technology, and focal actors.

Research limitations/implications

– The growing trends toward social networks, co-specialization, actor dependency and shared resources encourage service infusion scholars to focus on network-related and relational capabilities, co-opetition, open business models, and relational rent extraction. Furthermore, service infusion research would benefit from considering strategy-based theoretical discussions, constructs, and constraints that would improve the scientific rigor, impact and contribution.

Originality/value

– This paper represents a systematic attempt to link the service infusion literature with strategic management theories and thoroughly analyzes the knowledge gaps and possible misconceptions.

Effects of a production improvement programme on global quality performance

Purpose

– How can multinational companies become more productive on a global scale? The purpose of this paper is to investigate whether a production improvement programme can improve quality performance in a global network of factories. Specifically, the paper analyses the effects of the Volvo Group's production improvement programme on global quality performance.

Design/methodology/approach

– The research approach is a case study of the Volvo Production System (VPS). The paper analyses the effects of the programme on global quality performance, using data from an implementation audit and a questionnaire survey. The paper triangulate the analysis with longitudinal quality performance data from three different plants.

Findings

– The paper finds a significant and strong positive relationship between implementation of the VPS and improvements in both process quality and product quality. Hence, the paper suggests that tailored production improvement programmes have clear positive effects on global quality performance.

Research limitations/implications

– As with all case studies, the paper should use caution when generalising beyond the specific case. However, the Volvo Group is a broad and diversified corporation, which mitigates this limitation.

Originality/value

– While many studies have investigated the effect of production improvement programmes on performance, very few have looked at the effect of a corporate multi-plant programme. This study represents one of the first attempts to do so. The paper also provides a case description of the VPS that readers might find valuable in its own right.

Multi-plant improvement programmes: a literature review and research agenda

Purpose

– To advance the productivity of all plants in the network, multinational corporations develop and deploy multi-plant improvement programmes. In this paper, the authors systematically review and synthesise the emerging literature on multi-plant improvement programmes. The paper aims to discuss these issues.

Design/methodology/approach

– Through a systematic manual search, the authors examine 15 top journals from operations management, general management and international business literature in the time span between 1998 and 2011.

Findings

– The authors found 30 papers that specifically deal with operational improvement programmes in a multi-plant international setting, of which only nine take a headquarter perspective. This low number contrasts sharply with the magnitude and importance of such programmes in industry. The authors discuss key dimensions that explain how multi-plant improvement programmes result in the adopting, adapting, acting or avoiding of programme practices in subsidiaries and propose a related research agenda.

Research limitations/implications

– The authors affirm that a new field is in the making, with IJOPM as the leading professional journal. Further empirical research is called for, but particular methodological caution must be paid to the phenomenon of acting in subsidiaries.

Originality/value

– No coherent stream of research has addressed multi-plant improvement programmes. This paper represents a focused review that supports the further development of the field.