Configurations of low-contact services

This study uses a cluster analysis procedure to develop a classification model of low-contact services based on seven operations objectives. The effectiveness of the classification scheme is tested by demonstrating the link between the objectives, competitive priorities, and performance. This study also identifies eight underlying factors of competitive priorities in low-contact services. Furthermore, discriminant analysis on competitive priority dimensions shows that low-contact services consist of multiple groups and therefore should not be lumped into one group in any analysis scheme.     

A typology of offshoring and outsourcing in electronically transmitted services

The offshoring and outsourcing of service work from high-wage to low-wage countries has received considerable exposure in the popular press. Some have claimed that virtually all services that can be electronically transmitted should be offshored due to the extreme labor rate differentials. Relatively little work has actually been offshored to date, making empirical assessment difficult. Here, a normative model of the appropriate role of offshoring is proposed. We present a strategic contingency model, to be viewed at the process level, intimating that firms with the same processes should come to different solutions regarding these decisions.     

Facilitating offshoring with enterprise technologies: Reducing operational friction in the governance and production of services

The development of cheap and robust communications technologies has lowered the cost of conducting business transactions across international boarders and opened up low wage rate global labor markets to firms facing demand for cheap and efficient service delivery. A review of transaction cost theory and operations management models of service process disaggregation reveals parallels between the how firm boundaries are determined and how certain service process elements can be disaggregated from face-to-face customer contact. This theoretical background is used to identify challenges to the effective offshoring of service processes. The competitive capability literature offers suggestions as to how firms might acquire the internal capabilities required to manage offshore service processes. Propositions are developed on how the standardized transactional infrastructure of enterprise technologies (and the organizational competencies developed by successful enterprise system adopters) may help mitigate the challenges of offshore governance.     

Monitoring process quality in off-shore outsourcing: A model and findings from multi-country survey

We investigate how recent advances in information technology and telecommunications have led to real-time monitoring of processes at the site of the provider by a buyer located across the globe. We construct a game-theoretic model of the dynamics of the buyer–supplier interaction in the presence of moral hazard and incomplete contracting. We derive the Minimum Quality Threshold (MQT) below which the provider's output will certainly be inspected. Our findings show that the buyer can pick a level of monitoring and thereby force the provider to exceed the quality level of the MQT in output quality and avoid costly and wasteful inspection. Finally, our model explains why the production of processes that are complex and more prone to errors are actually monitored less by the buyers. We furnish the results of a comprehensive, multi-year, multi-country survey of the efficacy of monitoring in off-shore outsourcing projects and demonstrate strong empirical support for the findings of the model.     

Information systems outsourcing: Replicating an existing framework in a different cultural context

In order for any field of study to refine the promising concepts and weed out the weaker concepts it is necessary that researchers revisit earlier studies from time to time and evaluate their general applicability to new contexts. Replication is an important technique for researchers to embrace in order to achieve this goal. In this study, we test one of the frameworks of technology outsourcing developed in the West, by changing the cultural context. Following Kodak's historic outsourcing decision, technology outsourcing has assumed significant importance among researchers and practitioners. Most of the research in relation to technology outsourcing has been conducted in the Western culture (including the USA and the UK), so our goal in this study is to extend the understanding of technology outsourcing research conducted in the West to another culture-that of Korea, through replication.We focused on information systems (IS) outsourcing decision making as a case in point and found both similarities and dissimilarities in relation to the current understanding of the same. These similarities and differences in turn, reveal the distinctions between the Western and the Korean approaches toward achieving outsourcing success. The similarities are the partial preference for short-term contracts and contracting out to external vendors. However, the two cultures differed in their decision making in the way they pursue contractual completeness, whether in-house departments competes or not, design of contract to include partnership measures, criticality of tasks outsourced, familiarity with the outsourced task, postponing a few outsourcing decisions, and withholding a piece of a contract as bait. We also found “trust” and “task partitioning to gain advantage of varied expertise” to be important for achieving outsourcing success in the Korean organization. In addition, we observed that outsourcing success is achieved by maximizing reliability and relationship in the Korean context rather than by maximizing flexibility and control, as was observed in the Western context. We argue that this difference is a function of cultural diversity.     

The patient safety chain: Transformational leadership's effect on patient safety culture, initiatives, and outcomes

The purpose of this study is to investigate the existence of a patient safety chain for hospitals. Drawing on high reliability organization theory, multifactor leadership theory and total quality management literature, we develop and test a model for improving patient safety – a critical issue facing hospitals today. Specifically, we hypothesize that improving patient safety begins at the highest level of the organization with a transformational leadership style. This leads to a sequence of linkages whereby transformational leadership has an important relationship with creating a culture of safety, which in turn is associated with the adoption of patient safety initiatives, and ultimately with positive improvements in patient safety outcomes. Using data from a nationwide survey of over 200 hospitals, we use structural equation modeling to provide empirical support for the effectiveness of this patient safety chain model. The results have major implications for enhancing operations in hospital settings.     

A typology of mixed methods research designs

The mixed methods paradigm is still in its adolescence, and, thus, is still relatively unknown and confusing to many researchers. In general, mixed methods research represents research that involves collecting, analyzing, and interpreting quantitative and qualitative data in a single study or in a series of studies that investigate the same underlying phenomenon. Over the last several years, a plethora of research designs have been developed. However, the number of designs that currently prevail leaves the doctoral student, the beginning researcher, and even the experienced researcher who is new to the field of mixed methods research with the challenge of selecting optimal mixed methods designs. This paper presents a three-dimensional typology of mixed methods designs that represents an attempt to rise to the challenge of creating an integrated typology of mixed methods designs. An example for each design is included as well as a notation system that fits our eight-design framework. This paper won the James E. McLean outstanding paper award.     

Process quality improvement: An examination of general vs. outcome-specific climate and practices in hospitals

Despite numerous efforts to foster quality improvement in healthcare, much of the extant data and research indicate that substantial shortcomings in the delivery of effective and reliable care remain. This research examines both general and outcome-specific operations management efforts and their impact on delivering quality healthcare. We empirically test a conceptual framework of safety culture that accounts for the use of general quality practices as well as outcome-specific approaches in light of the general and more focused climates in which those practices are embedded. We utilize structural equation modeling to analyze a unique pairing of primary data from a survey of quality improvement directors and chief nursing officers at 272 hospitals across the U.S. with secondary data on process of care performance publicly reported by the federal government's Center for Medicare and Medicaid Services (CMS). General safety climate and quality practices are found to establish an environment in which outcome-specific efforts enable process quality improvement. A split-group SEM analysis highlights significant differences in managing healthcare safety outcomes through climate and practices. In particular, the employment of practices focused on the specific outcome goals is found to relate to higher quality of patient care in smaller hospitals. In contrast, the development of a climate focused on specific outcome goals is found to relate to higher quality of patient care in larger hospitals. These findings suggest alternative approaches for small and large hospitals in the critical effort to improve patient safety and reduce healthcare costs.     

Demand chain management: an integrative approach in automotive retailing

Recent reviews of the ‘operations management’ (OM) research literature have shown a surprising little shift towards empirical methodologies from traditional modelling solution methods. In addition, there is generally a lack of empirical testing and validation of manufacturing strategies. Coupled to this fact is that empirical work is rarely carried out in an inter-disciplinary manner, with the complete combination of OM, marketing, strategy, lean thinking and accounting approaches particularly poorly researched. Fully cross-functional integrative empirical research is required to help support the understanding of the applicability of OM practices within industry. This paper explores such an integration of approaches developed within the ‘lean thinking, strategic cost management, marketing and policy deployment areas’. In order to investigate the approach a single automotive retailer is used as an instrumental case. The results of the study show that the new approach stands up well as an integrative approach that can prove highly beneficial results. However, the pilot work also identified a number of limitations that are the basis of further refinement and testing of the method.     

Cross-functional alignment in supply chain planning: A case study of sales and operations planning

In most organizations, supply chain planning is a cross-functional effort. However, functional areas such as sales, marketing, finance, and operations traditionally specialize in portions of the planning activities, which results in conflicts over expectations, preferences, and priorities. We report findings from a detailed case analysis of a supply chain planning process that seemingly weathers these cross-functional conflicts. In contrast to traditional research on this area, which focuses on incentives, responsibilities, and structures, we adopt a process perspective and find that integration was achieved despite formal functional incentives that did not support it. By drawing a distinction between the incentive landscape and the planning process, we identify process as a mediator that can affect organizational outcomes. Thus, organizations may be capable of integration while functions retain different incentives and orientations to maintain focus on their stakeholders’ needs. Through iterative coding, we identify the attributes of the planning process that can drive planning performance—information, procedural, and alignment quality—but also find evidence that achieving alignment in the execution of plans can be more important than informational and procedural quality. In addition to process attributes, we also identify social elements that influenced the performance of the planning process and place the information processing attributes within a broader social and organizational context.     

Towards an holistic understanding of disruptions in Operations Management

The paper reviews the literature on maintenance management, integrates key dimensions of maintenance within a taxonomy of maintenance configurations, and explores the impact of differing configurations on contextual factors and operational performance. “Prevention”, “hard maintenance integration” and “soft maintenance integration” were identified as key maintenance variables. Data were collected from 253 Swedish manufacturing companies, and three distinct clusters were identified. “Proactive Maintainers” emphasized preventive maintenance policies. “IT Maintainers” relied on computerized and company-wide integrated information systems for maintenance. “Maintenance Laggers” emphasized all maintenance dimensions to lesser extent than the others. The importance of maintenance prevention and integration differ between contexts. There were subtle performance differences across identified configurations, but preventive and integrated maintenance were more important for companies seeking competitive process control and flexibility. There existed no group with any great emphasis on all three maintenance dimensions, but attaining truly high performance may require a rare mix of the three dimensions. This mix of variables could constitute a hypothesized “World Class Maintenance” group.     

Critical challenges of inventory management in service parts supply: A Delphi study

The primary purpose of the study is to determine the critical challenges facing service parts managers and to help bridge the gap between research and practice. In order to accomplish this, a series of semi-structured interviews with 18 senior service parts managers from a variety of industries frequently dealing with service parts inventory issues was used as the basis of input for a web-based Delphi study. The results of the study include 18 commonly identified potential service parts inventory issues and ten key challenges for the service parts supply industry. The identified challenges should serve as a guide for both researchers seeking to contribute to the service parts body of knowledge and practitioners who are regularly faced with service parts inventory issues.     

A contingent view of e-collaboration and performance in manufacturing

Manufacturers are increasingly utilizing Internet-based tools to more readily conduct collaborative activities with key business customers. While the emerging conventional wisdom suggests that the greater the extent to which manufacturers engage in Internet-enabled commerce with downstream business customers the better the performance, we espouse an alternative view. Consistent with the relational view of competitive advantage and contingency theory, we develop a model and a series of hypotheses that specify how various product and market characteristics may influence the nature of the expected positive relationship between e-collaboration and performance.To test the model, we collected data from 50 manufacturers using a Web-based survey. Our partial least squares (PLS) analysis results do indeed support the notion that e-collaboration is related to better operational and business performance. However, we go on to show that the strength of the relationship between e-collaboration and operational performance diminishes as the level of environmental munificence increases. Notably, we found no such moderating effect with respect to the level of product complexity or market variability. Our findings contribute to the operations strategy literature on supply chain relationships in the e-business arena and offer managers a framework for understanding the conditions under which investments in e-collaboration may be more appropriate and therefore more beneficial.     

The efficient use of enterprise information for strategic advantage: A data envelopment analysis

A majority of manufacturers make use of some form of enterprise systems (ES), yet on average, the financial impact of ES adoption is essentially neutral. We propose that in an ES environment of easy information access, competitive success depends, in part, on the policies regulating enterprise information use. To explore this proposition, we examine the efficient use of different types of enterprise information in the realization of strategic performance. Efficient firms will devote fewer resources to information use to achieve the same strategic performance as less efficient firms.     

Trade-offs in make-buy decisions

While the previous literature uses transaction cost economics and the resource-based view to theoretically derive the benefits of outsourcing, it has so far overlooked how these theoretical underpinnings must be used to assess trade-offs involved in make-buy decisions as well. This study investigates trade-offs in make-buy decisions for the buying firm. It takes an operations strategy perspective and links manufacturing firms’ competitive priorities to outsourcing motives and resulting capabilities. Survey data from a representative sample of 136 manufacturing plants in Sweden is subjected to regressions analysis. In contrast to earlier empirical research, this study shows that resulting capabilities of strategic outsourcing initiatives are distinct, and, furthermore, do not emerge cumulatively. This has important implications for the ongoing debate over trade-offs in the operations strategy literature. Findings are clearly in support of the trade-off model and extend current research into the theoretical domain of make-buy decisions.     

ISO 9000 practices and financial performance: A technology coherence perspective

Attention to processes has increased, as thousands of organizations have adopted process-focused programs such as TQM and ISO 9000. Proponents of such programs stress the promise of improved efficiency and profitability. But research has not consistently borne out these prospects. Moreover, the expectation of universal benefits is not consistent with research highlighting the important role of firm-specific capabilities in sustaining competitive advantage. In this paper, we use longitudinal panel data on ISO 9000 practices for firms in the auto supplier industry to study two new issues related to the adoption of process management practices. First, we find that, as the majority of firms within an industry adopt ISO 9000, late adopters no longer gain financial benefits from these practices. Second, we explore how firms’ technological coherence moderates the performance advantages of ISO 9000 practices. We find that firms that have a very narrow or very broad technological focus have fewer opportunities for complementary interactions that arise from process management practices and thus benefit less than those with limited breadth in technologically related activities.     

An evaluation of heuristic methods for determining the best table mix in full-service restaurants

Little research has been done on the optimal mix of supply in service businesses that maximizes revenue. Our research context is the full-service restaurant table mix problem. This problem, which is quite new to the literature, finds the optimal number of different size tables for a restaurant to maximize its value (revenue or contribution) generating potential. Specifically, we examine the effectiveness of eight heuristic techniques for the problem using two experiments. The first experiment uses data from a 240-seat full-service restaurant to evaluate all eight heuristics, while the second experiment investigates the performance of selected heuristics under a broader set of environmental factors. The results of our first experiment showed that the better of the simulated annealing heuristic variants yielded the optimal solution in seven of eight test problems, averaging within 0.1% of optimal. Our second experiment showed that the simplest of the models we investigated yielded solutions within 1% of the simulated annealing solution. Finally, we observed that altering the table mix on a daily basis increased performance by over 1% compared to maintaining the optimal weekly table mix.