Operations managers’ individual competencies for mass customization

Measurement development for eco-innovation capabilities of Malaysian oil and gas firms

Purpose

To combat concerns over the state of the natural environment, energy security and deteriorating air quality, the oil and gas sector needs to implement eco-innovations. Interest in eco-innovation is growing, as its implementation facilitates the transition toward sustainable development and a circular economy, while enabling firms to attain a competitive advantage vis-à-vis capabilities that foster sustainable economic and environmental development. However, literature on eco-innovation capabilities construct development, measurement and validation is scant. This study, therefore, develops an Eco-innovation Capabilities Scale for oil and gas firms.

Design/methodology/approach

Three dimensions of Eco-innovation Capabilities are identified through an extensive literature review and qualitative interviews. Exploratory and Confirmatory Factor Analysis is applied to data collected from managers of Malaysian Oil and Gas Services and Equipment (OGSE) companies.

Findings

Results reveal a parsimonious three-dimensional structure with nine items. The construct of eco-innovation capabilities is manifested by Product Service Stewardship, Environmental Pollution Prevention and Sustainable Development Commitment dimensions. Reliability analysis confirms the reliability and validity of the scale.

Originality/value

The eco-innovation capabilities scale should be useful to researchers in exploring dimensions, factors and outcomes of eco-innovation capabilities. Oil and gas firms play a key role in the global energy mix; hence managers of oil and gas firms may also find this scale useful in measuring their eco-innovation implementation.

Competing through manufacturing: countering a product's liability of foreignness through mass customization

Purpose

The operational capability of mass customization (MC) allows consumers to obtain products tailored to their idiosyncratic needs. This study aims to provide insights into the potential of this capability for countering a product's liability of foreignness – the negative effect of the out-group status of a product's country of origin (COO) on consumers' evaluations of the product.

Design/methodology/approach

Based on the social identity approach, it is hypothesized that this liability is reduced when a consumer product is mass-customized rather than standardized as per a mass-production strategy. This hypothesis is tested using a mixed between- and within-subject experiment.

Findings

When evaluating mass-produced sneakers, native German-speaking (Italian-speaking) South Tyrolean consumers rated the quality of Italian (German) sneakers significantly lower than that of German (Italian) sneakers. However, when the sneakers were mass-customized, this difference in perceived product quality was non-significant for both groups of consumers, supporting the research hypothesis.

Research limitations/implications

Future research could replicate this study in other samples, with other product types, COOs and countries of destination, as well as at different degrees of product customization.

Practical implications

Business-to-consumer firms contemplating the development of their MC capability are made aware that the benefits of this operational capability might go beyond the typical advantages highlighted by the existing literature.

Originality/value

This paper joins the discussion on MC value by offering a theoretical explanation and empirical support for another mechanism through which the operational capability of MC can create value, at least in business-to-consumer industries: by countering a product's possible liability of foreignness and thus increasing perceived product quality in export markets.

Achieving mass customization capability: the roles of flexible manufacturing competence and workforce management practices

Purpose

The purpose of this study is to investigate the effects of flexible manufacturing competence (FMC) and workforce management practices (WMP) in facilitating the development of mass customization capability (MCC). More specifically, this research analyzes not only the direct effects of FMC and WMP on MCC but also the moderating effect of WMP on the relationship between FMC and MCC.

Design/methodology/approach

Building on the resource-based view, a research framework depicting the linkages among the variables of interest has been proposed. The examination of the proposed research model and hypotheses are conducted by applying partial least squares-structural equation modelling (PLS-SEM) on a dataset of Indian manufacturing organizations.

Findings

The findings suggest that both FMC and WMP significantly and positively affect the development of MCC. Also, the results show that the relationship between FMC and MCC is strengthened by the implementation of WMP.

Practical implications

The study identifies several crucial practices for enhancement of flexible manufacturing competence and effective management of the workforce and also highlights the complementarities among them to develop superior MCC.

Originality/value

While the research on the antecedent of MCC has increased substantially, the understanding of the interactions among FMC, WMP, and MCC is still limited. This is the first study that sheds light on the interconnectedness among the variables of interest.