Relationship between just-in-time manufacturing practices and performance: A meta-analytic investigation

Just-in-time (JIT) manufacturing is among the most commonly researched topics in the area of operations management. This study examines the relationship between JIT manufacturing practices and performance outcomes by means of meta-analysis of correlations approach. Based on an in-depth analysis of literature spanning from 1992 to 2008, the results of this meta-analytic investigation support a positive relationship between JIT manufacturing practices and aggregate performance. However, the findings suggest that not all individual JIT practices are associated with all types of performance outcomes. This study highlights the JIT practices that have the greatest impact on individual performance outcomes and emphasizes the role of moderating factors in the relationship between JIT practices and performance. Theoretical and managerial implications are discussed and directions for future theory building in JIT are presented.     

The production performance benefits from JIT implementation

The intense competition in the current marketplace has forced firms to reexamine their methods of doing business. The US manufacturers have struggled with growing trade deficits and outsourced operations, while strong market competitors have emerged, using superior manufacturing practices in the form of just-in-time (JIT) and continuous process improvement. Although proponents cite the many benefits of JIT adoption, its implementation rate in the US has been relatively conservative. This study uses survey responses from executives at 95 JIT-practicing firms to better understand the benefits that firms have experienced through JIT adoption, and whether a more comprehensive implementation is worthwhile. The research results demonstrate that implementing the quality, continuous improvement, and waste reduction practices embodied in the JIT philosophy can enhance firm competitiveness. JIT implementation improves performance through lower inventory levels, reduced quality costs, and greater customer responsiveness. This study indicates that JIT is a vital manufacturing strategy to build and sustain competitive advantage.     

Private Politics, Corporate Social Responsibility, and Integrated Strategy

This paper provides a theory of private politics in which an activist seeks to change the production practices of a firm for the purpose of redistribution to those whose interests it supports. The source of the activist's influence is the possibility of support for its cause by the public. The paper also addresses the issue of corporate social responsibility by distinguishing among corporate redistribution as motivated by profit maximization, altruism, and threats by the activist. Private politics and corporate social responsibility not only have a direct effect on the costs of the firm, but also have a strategic effect by altering the competitive positions affirms in an industry. From an integrated-strategy perspective the paper investigates the strategic implications of private politics and corporate social responsibility for the strategies of rival firms when one or both are targets of an activist campaign. Implications for empirical analysis are derived from the theory.     

Toward a continuum of measurement scales in Just-in-Time (JIT) research – an examination of the predictive validity of single-item and multiple-item measures

We compare the predictive validity of single-item and multiple-item measures utilized in Just-in-Time (JIT) research. The study examines if single-item measures could be used for some of the JIT practices, especially if the object of inquiry is concrete singular and if the attribute to be researched is concrete. Arguments are developed for the concrete nature of the JIT practice of “set-up time reduction” and we examine the ability of a single-item measure of this variable to predict the criterion variable (delivery performance). In addition, the study also examines the efficacy of using multiple-item measures for variables that are abstract in nature, and thereby attempts to develop a continuum of JIT constructs ranging from concrete to abstract. The results obtained by analyzing two sets of survey data show that multiple-item measures are not necessarily more valid than single-item measures for all constructs. The findings provide evidence that multiple-item measures and single-item measures for scale development should be contingent upon the nature of constructs. For concrete constructs, single-item measures are as valid as multi-item measures. Meanwhile, for abstract constructs it is important to ensure that multiple items are considered to capture the multi-dimensional nature of these constructs. Results also reveal that JIT practices display significant differences in terms of abstract/concrete perceptions. The paper presents theoretical and practical implications of the findings, and offers directions for future research.     

Enhancing Data Science Ethics Through Statistical Education and Practice

As sources of data become more plentiful and massive datasets are easier to acquire, new ethical issues arise involving data quality and privacy, and the analysis, interpretation and dissemination of data‐driven decisions. There are numerous anecdotes involving abuses of complex data analyses and algorithms, and the impact they have had on society. In this paper, we discuss what statisticians can do to help enhance data science ethics in practice and what statistics educators can do to instil sound ethical behaviour in our students. We have opportunities to practice and teach ethical conduct relevant to all stages of the data life cycle. This paper discusses issues impacting ethical data science, with a focus on how statisticians can help raise awareness and encourage implementation of ethical best practices.     

企业社会责任履行的动力机制研究

近年来,随着食品安全、社会环境和道德伦理问题的日益严重,企业社会责任已经受到企业管理者与学术研究者的普遍关注。从企业的外部压力和自我认知视角分析企业社会责任履行的主要影响因素包括利益相关者压力、制度压力和伦理领导。实证结果表明,利益相关者压力和制度压力对企业社会责任履行均具有显著的正向影响。在伦理领导方面,变革型领导对社会责任履行具有显著的正向影响,而事务型领导对社会责任履行并不具有显著影响,企业规模调节了利益相关者压力和制度压力对企业社会责任履行的影响作用。     

Just-in-time inventory systems innovation and the predictability of earnings

Firms that adopt just-in-time (JIT) inventory practices do so in order to realize cost savings and improve product quality, but an unexpected benefit to such firms could be a more predictable earnings stream. We examine the relationship between implementation of just-in-time inventory practices and the predictability of future quarterly earnings for a matched-pair sample of 82 firms, half of which have publicly announced that they have adopted JIT inventory practices. We find that one- and four-step-ahead forecasts of quarterly earnings, using either a Brown–Rozeff [Journal of Accounting Research (1979) 179–189] ARIMA or a seasonal random walk expectation model, are more accurate for the firms that have adopted JIT.     

Managing inventories for maximum benefit.

In many companies it is not feasible to go to just-in-time (JIT) inventory management practices. In these instances, an aggressive inventory-monitoring program is a must. This article describes a program that resulted in a 75-percent reduction of inventory over a five-year interval. The topics covered will be applicable to those companies where JIT is not the answer.     

Management initiatives and just-in-time manufacturing

Numerous benefits have been claimed for firms that implement just-in-time (JIT) approaches to manufacturing. While a fair number of Western firms have been successful at such implementations, other firms that could benefit appear to be addressing only a few features rather than the overall philosophy and system. This paper considers whether each of a number of management initiatives is necessary for the implementation of just-in-time manufacturing. A case-based research methodology was used for theory testing at six plants, each which claimed to be implementing just-in-time manufacturing. Data were obtained via interviews, questionnaires, direct observation, and collection of documents. Of six management initiatives considered, four were supported as necessary conditions for both JIT flow and JIT quality, as well as for employee involvement. These four are: (1) promotion of employee responsibility, (2) provision of training, (3) promotion of teamwork, and (4) demonstration of visible commitment. The other two management initiatives were rejected as necessary conditions. These are: (1) provision of workforce security, and (2) use of group performance measures. The results also indicated that employee involvement plays a central role in JIT implementation.     

Environmental responsibility and policy in a two-country dynamic input–output model

Increased spatial dependency of economic activities, as well as spatial differentiation of production and consumption, has implications for environmental policy. One of the issues that has gained importance is the responsibility for the emissions from products that cross national boundaries during the environmental policy's lifetime. This paper discusses the different ethical views of environmental responsibility. Furthermore, the policy measures that are associated with the different viewpoints are analyzed in a novel dynamic two-country two-sector dynamic input–output model. A numerical example is modeled to assess taxing schemes that are based on these ethical viewpoints. The results show that a tax on the ‘embodied’ environmental pressure, which is generally viewed as ethically preferable, is less effective that the current policy of taxing consumers of products. Our discussion however shows that these results are very dependent on the model structure and initial parameters that are used. Nevertheless, the model illustrates that policies that are based on ethically superior standpoints may have detrimental distortionary effects in the dynamic setting.     

Management for Sustainable Development and Its Impact on Firm Value in the SME Context: Does Size Matter?

With the increasing demands from society towards sustainable and social responsible business practices, management for sustainable development has become a cornerstone to understand the success of many firms in the current competitive context. This article investigates corporate social responsibility (CSR) and examines the links between CSR practices and business outcomes – both financial and non‐financial (i.e. image and corporate reputation) – for small‐to‐medium sized enterprises (SMEs). In addition, we also attempt to determine whether the impact of such relationships is moderated by firm size. To this end, we carry out a quantitative study using PLS techniques to analyze a sample of SME owners and managers, with a view to test the proposed model in the light of social capital theory. In this sense, our study is pioneering in that it aims to determine – from a quantitative viewpoint – the degree to which firm size has a moderating impact on a series of relevant CSR‐driven outcomes. The data suggest that, in SME contexts, CSR impacts corporate reputation, brand image and financial value of the company. Importantly, we find that the larger the firm, the greater the intensity of the relationships linking CSR and business outcomes. Hence, our findings have important implications for CSR implementation in SME contexts. Finally, we provide a series of guidelines aimed at maximizing the effectiveness of CSR‐based business practices. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

The competitive determinants of a firm's environmental management activities: Evidence from US manufacturing industries

Environmental management (EM) issues have received substantial attention in operations management. While the link between EM practices and firm performance has been well studied, little is known about the competitive drivers of a firm's EM activities. In this research, a Schumpeterian economics perspective is adopted to investigate competitive interactions among leader and challenger firms in the domain of EM, with a particular focus on operational EM activities. Using econometric methods, the empirical analysis of panel data from a broad cross-section of US manufacturing firms reveals that such rivalry does exist and that the effect of a rival's past EM activity on a focal firm's EM activity is greater for more profitable and smaller firms. In addition, firm characteristics such as market leadership, firm size and firm profitability are found to significantly affect the magnitude of a firm's EM activities. This study presents theoretical and empirical evidence of rivalrous behaviors in the domains of EM and OM and, thus, has interesting implications for operations management research and practice.     

Do LGBT‐supportive corporate policies enhance firm performance?

Prior research provides evidence that lesbian, gay, bisexual, and transgender (LGBT)‐supportive corporate policies are related to important human resource functions, such as enhanced recruitment and retention. In addition, prior research indicates that investors view the adoption of such policies positively. We examine the firm‐performance mechanisms underlying favorable stock‐market reactions based on an integration of perspectives from corporate social responsibility and the business case for diversity. Specifically, we estimate a hierarchical linear model (HLM) to account for the nested nature of our data (firms nested within states) and find that (1) the presence of LGBT‐supportive policies is associated with higher firm value, productivity, and profitability; (2) the firm‐value and profitability benefits associated with LGBT‐supportive policies are larger for companies engaged in research and development (R&D) activities; and (3) the firm‐value and profitability benefits of LGBT‐supportive policies persist in the presence of state antidiscrimination laws. In supplemental analyses, we find that firms implementing (discontinuing) LGBT‐supportive policies experience increases (decreases) in firm value, productivity, and profitability. We are among the first to link LGBT‐supportive policies specifically to financial performance outcomes as well as to develop and test a multilevel model of these relationships. Our results have important implications for theory and research on LGBT issues in organizations, human resource managers, and policymakers.     

Ethical Behavior and Regional Environments: The Effects of Culture, Values, and Trust

This article offers a theoretical framework and empirical analysis for explaining regional differences in the United States between culture, trust, and ethical behaviors in workplaces. Drawing on a branch of behavioral economics that uses “cultural cognition” to describe social factors influencing values and ethical decision making, we argue that an orientation toward a hierarchical or individualistic view of society erodes levels of generalized trust. A lack of generalized trust among citizens and workers is associated with employers’ illegal activity to impede union organizing activity, which we define as a violation of ethical standards. We tested our model at the US state level of analysis and found that trust mediates the relationship between social values of hierarchy and unfair labor practices. To conclude, we suggest connections between the theory and its implications for the impact of culture on a firm’s responses to workers’ exercise of their rights of collective action.     

Ready for the mantle? Australian human resource managers as stewards of ethics

In recent years in Australia, interest in business ethics has increased among managers, management educators and the public who observe the behaviour of organizations. This has been reflected in the literature of management education by an increased attention to the ethical implications of management practice. In parallel, human resources management in Australia has continued to evolve as a field, and to press its claims as a profession. This is reflected by ongoing debate in the literature about the HRM role. Advocates of an expanded role for HRM claim that HRM initiatives and practices have a strategic impact on organizations, and should accordingly be recognized at senior management levels. However, these claims for an expanded role for HRM have not been accompanied by an increased discussion of the ethical implications of the HRM role. The need for such discussion is highlighted by a survey of HR managers in Australia, which found a high level of disagreement among HR managers on a wide range of ethical issues. Even where questions related to perceptions of fact rather than the expression of attitudes, a high level of disagreement was revealed. If this is the case, it should not be taken for granted that there is a ready consensus among HR managers when it comes to translating ethical principles into organizational practice. The importance of this conclusion is indicated by another finding of the study: where organizations have undertaken initiatives on ethics, there is a high degree of involvement by HR staff.     

A comparative analysis of corporate reporting on ethical issues by UK and German chemical and pharmaceutical companies

This paper reports on a study of reporting on ethical issues in the corporate annual reports of the largest UK and German chemical and pharmaceutical companies between 1985 and 1995. The study is both comparative and longitudinal in nature, examining in detail how ethical reporting practices developed differently in two Western nations. Despite the similarity in industry affiliations of the companies in the two samples, the study found substantial differences in the nature and patterns of reporting both across time and between the two countries studied. In particular, German companies reported more information and that reporting ‘matured’ to its current level at an earlier date. The paper explores some of the factors which might be thought to have caused this diversity in reporting between the two countries including: industry initiatives; extent of regulations demanding ethical responsibility; and other social and political pressures.     

Comparative study on the relationship between just-in-time production practices and operational performance in manufacturing plants

This study analyzes the differences in approaching JIT production across countries in order to identify alternative paths to high manufacturing performance. We applied ANOVA and regression techniques to the database of High Performance Manufacturing Project to examine the similarities and differences across countries in JIT implementation and the effect of JIT production practices on operational performance. The results indicated that JIT production practices were implemented in different ways across the countries. We found that the relationship between JIT production practices and plant performance is contingent on the national context and infrastructure practices in quality and workforce management. JIT delivery by suppliers, JIT layout, and setup time reduction were found to be the most effective approaches to improve cost, delivery, and flexibility. This study highlights the important role of shop-floor communication and information sharing, which should be focused for maximizing the benefits of JIT implementation.     

An examination of the literature relating to issues affecting the human variable in just-in-time environments

There has been an extensive body of research conducted into the technical aspects of the just-in-time (JIT) manufacturing methodology, particularly prior to 1990. It is only in more recent times that the focus has turned toward the more subtle people-related aspects. The recognition of JIT as a truly holistic approach to managing manufacturing operations has led to an appreciation of the importance of the role played by the human variable as well as an emphasis on the impact that organisational structure and management style can have on successful operation. This article examines and analyses the content of a wide range of articles related to issues such as: the need for change in corporate culture, the role of organisational structures, factors significantly impacting chances of success, the importance of employee involvement, how best to involve employees, the importance of training, how/whom/when to train, different team-based organisational structures, the impact of changing roles on various levels of the organisation and the appropriateness of particular change management strategies. An overall picture of the current state of thinking on these issues is thus developed and the importance of these factors to the successful implementation and operation of JIT highlighted. Opportunities for further research in this important area are identified.