The differing impacts of operational and financial slack on occupational safety in varying market conditions

Operations management scholars have long debated the right level of slack resources required to optimize a production system. Recent research suggests that the right level of operational slack, typically in the form of inventory, is very little but not none. However, this conclusion was reached without considering the role of slack resources in occupational safety, which is a critical oversight since the safety literature predicts that the reduction of operational slack harms workers. To address this gap, secondary data from 3945 publically listed U.S. firms is used to explore the role of operational and financial slack as well as market factors in occupational safety. The results show that decreasing operational slack harms workers and that this effect is mitigated when firms hold higher levels of financial slack. Furthermore, the external market environment also plays a crucial role in the operational slack – safety relationship.     

Ambidextrous culture,contextual ambidexterity and new product innovations: The role of organizational slack and environmental factors

Contextual ambidexterity, defined as the simultaneous pursuit of alignment and adaptability at business unit, is linked to several organizational outcomes including improved performance and innovation outcomes. Extant research posits ambidextrous organizational culture as an important enabler to contextual ambidexterity but suffers from a lack of a well‐meaning scale for the same. In addition, there is very little understanding as to how tasking and facilitating environment can be on firms' endeavour for contextual ambidexterity and the outcomes thereof. Therefore, the current piece of research has twin objectives using two separate studies. First, to develop a scale for ambidextrous organizational culture construct and second, to analyse the role played by the external forces (munificence and dynamism) and internal slack resources on the relationships between ambidextrous organizational culture and contextual ambidexterity and between contextual ambidexterity and new product innovation outcomes through an empirical investigation in India. Using structural equation modelling on data from 414 respondents, we found environmental munificence to strengthen the relationships between ambidextrous organizational culture and contextual ambidexterity and between contextual ambidexterity and new product innovation outcomes. On the other hand, environmental dynamism had a dampening impact on these relationships. Our findings also suggest that for low slack organizations, dynamic and unmunificent environments magnified the negative impact on an organisation's ambidexterity efforts and new product innovation outcomes.     

The contingency effects of environmental uncertainty on the relationship between supply chain integration and operational performance

This paper extends prior supply chain research by building and empirically testing a theoretical model of the contingency effects of environmental uncertainty (EU) on the relationships between three dimensions of supply chain integration and four dimensions of operational performance. Based on the contingency and organizational information processing theories, we argue that under a high EU, the associations between supplier/customer integration, and delivery and flexibility performance, and those between internal integration, and product quality and production cost, will be strengthened. These theoretical propositions are largely confirmed by multi-group and structural path analyses of survey responses collected from 151 of Thailand's automotive manufacturing plants. This paper contributes to operations management contingency research and provides theory-driven and empirically proven explanations for managers to differentiate the effects of internal and external integration efforts under different environmental conditions.     

Managing human resources in dynamic environments to create value: role of HR options

HR options as firm investments in human assets in uncertain environments to create the capability to flexibly respond to future contingent events have been recognised as valuable. However, the black box of causal interlinkages between environmental uncertainties, HR options and firm performance is yet to be explored in strategic HRM literature. Based on the data obtained from 108 IT software firms in India, this study empirically explores these linkages using a multi-level causal model. The results suggest that the use of HR options positively mediates the effects of environmental uncertainties on firm performance. The mediating influences of different types of HR options, used by the firms to manage various types of uncertainties affecting their human assets, on the operational and the financial performance of the firms are found to be different. Implications of findings of the study for managing investments in human assets under uncertainty have been discussed.     

Enhancing effects of manufacturing flexibility through operational absorptive capacity and operational ambidexterity

A large body of research investigates how manufacturing flexibility in uncertain environments leads to firm performance, with mixed results. The mixed findings could be due to differences across firms in terms of the capabilities to acquire, assimilate, and transform knowledge and to simultaneously pursue both the exploitation of existing operational capabilities and the exploration for new operational capabilities. Building on the literature that suggests that manufacturing flexibility mediates the relationship between environmental uncertainty and firm performance, we explore the applicability of two organizational learning contingencies to the operations environment: operational absorptive capability and operational ambidexterity. Absorptive capacity enables the recognition and assimilation of new knowledge. Ambidexterity determines whether this knowledge will be applied for both exploration and exploitation. Using a sample of 852 manufacturing firms, we find that environmental uncertainty affects firm performance directly and indirectly through manufacturing flexibility. Furthermore, both operational absorptive capacity and operational ambidexterity moderate the relationship between environmental uncertainty and manufacturing flexibility and the relationship between manufacturing flexibility and firm performance. Theoretical and practical implications are discussed.     

Impact of eBusiness technologies on operational performance: The role of production information integration in the supply chain

While the information technology (IT) literature is mixed regarding the direct benefits of eBusiness technologies on performance, the impact of such technologies on supply chain practices remains largely an unexplored area of research. We hypothesize that while there may be no direct benefit of eBusiness technologies on performance, these technologies might support customer integration and supplier integration in the supply chain, which in turn might impact operating performance.To examine our hypotheses, we collected data from respondents who focused their responses to a single major product the process that manufactures it, a significant customer, and an important supplier. Our analyses showed that there was no direct benefit of eBusiness technologies on performance; however these technologies supported customer integration and supplier integration. Further, supplier integration was found to positively impact cost, quality, flexibility, and delivery performance; however there was no relationship between customer integration and performance. Consequently, there is a relationship between eBusiness technologies and supplier integration that leads to better performance. Further, there is an interactive effect between customer integration and supplier integration that supports the notion that firms that have both forms of integration, supported by eBusiness technologies, significantly outperform the others.     

Efficiency in Third Sector Partnerships for Delivering Local Government Services: The role of economies of scale,scope and learning

Abstract

Third sector partnerships are under pressure to change in the light of the increasing cost pressures on local public services. The literature throws doubt on the level of economies of scale and suggests that more attention should be given to economies of scope and learning. The common conflation of economies of size with economies of scale has led policymakers to overemphasize larger scale providers and has distorted the strategies which third sector organizations have adopted, pushing them towards mergers and consortia based on scale.     

Open search strategies and firm performance: The different moderating role of technological environmental dynamism

Mainly driven by the rapid progress of the ‘open innovation’ paradigm, previous research has devoted considerable efforts in investigating how the degree of openness to external knowledge influences firms׳ innovation performance. However, much less is known about its impact on performance at the firm level. Moreover, the question of which open search strategy is more suitable depending on environmental features is unresolved. We focus on breadth and depth as two distinct open search strategies and claim that, besides their different benefits in terms of learning and innovation, it is also necessary to consider their costs. Based on survey data of 248 high-technology manufacturing Spanish firms, this study extends recent research about the context dependency of openness effectiveness by showing that the effect of these two open search strategies on perceived firm performance is contingent with technological environmental dynamism in a reverse fashion. While search breadth is found to be positively associated with performance in less technologically dynamic environments, it seems to hurt performance in more dynamic contexts. On the contrary, while search depth is found to have a positive effect on performance in highly technologically dynamic environments, it appears to harm firm performance in more stable contexts.     

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.     

The effects of supplier-to-buyer identification on operational performance—An empirical investigation of inter-organizational identification in automotive relationships

Over the past decade conceptual and empirical research in operations management has embraced the idea that collaborative supplier-buyer relationships are a source of competitive advantage for manufacturing firms. Anecdotal evidence from the Japanese and U.S. automotive industry and emerging research suggests that inter-organizational identification of suppliers with their buyers, termed supplier-to-buyer identification, is an unexplored factor of relational advantage. This study presents a model and empirical test that supplier-to-buyer identification fosters superior operational performance by enhancing trust, supplier relation-specific investments, and information exchange. Through a survey of 346 automotive supplier-buyer relationships, the findings show that supplier-to-buyer identification directly impacts supplier relationship-specific investments and information exchange, although most of the latter effect is mediated by trust. The findings also indicate that supplier relation-specific investments and information exchange play different but complementary roles in influencing operational performance. The results suggest new directions for supplier-buyer relationship research in operations management and important managerial implications.     

Supply chain integration and operational performance: The contingency effects of production systems

The boundary conditions of supply chain integration (SCI) have been widely studied in order to find out when SCI is applicable and effective. However, prior studies have mainly focused on external contextual factors, such as supply complexity, environmental uncertainty and country-level infrastructure. This study contributes to the SCI literature by examining the contingency effects of internal production systems on the relationship between supplier integration, customer integration and operational performance. Based on organizational information processing theory, we provide evidence to show that the impact of supplier and customer integration on operational performance varies across production systems, such as one-of-a-kind production, batch production and mass production systems. The empirical results also reveal how supplier and customer integration can be matched with different configurations of production systems in order to achieve the desired quality, flexibility, delivery or cost performance.     

An analysis of decentralized collection and processing of end-of-life products

In this study, we analyze decentralized collection and processing operations for end-of-life products in durable goods industries. We consider a durable end-of-life product from which a particular part can be dismantled and remanufactured, and the remainder of the product can be further processed for part and/or material recovery. Both the quantity of end-of-life products available and the demand for remanufactured parts are price-sensitive. We develop models to determine the optimal acquisition price of the end-of-life products and the selling price of the remanufactured parts in centralized as well as remanufacturer- and collector-driven decentralized channels. We discuss how the decentralized channels can be coordinated to attain the end-of-life product collection rate that can be achieved in the centralized channel. In the presence of environmental regulations that require an original equipment manufacturer (OEM) of durable goods to collect and process its end-of-life products, we identify when and why the OEM would prefer a remanufacturer- or a collector-driven channel, i.e., outsource the processing or the collection activity, respectively. From a practical perspective, we show that the OEM should prefer a collector-driven channel to increase the collection rate, when end-of-life products are homogenous. However, we also show that the OEM would prefer a remanufacturer-driven channel under certain conditions. We also examine how the OEM can increase the quantity of used products collected, when the collection rate in the preferred channel setting falls short of the collection rate mandated by the environmental regulation. When end-of-life products are heterogeneous, we observe that the collection rate for all quality groups can be positive in a remanufacturer-driven channel, whereas the collection rate for some quality groups may be zero. This indicates that the OEM must pay more attention to its outsourcing decision in this case, if the environmental regulation in effect specifies target collection rates for individual quality groups.     

Career plateauing reactions: the moderating role of job scope,role ambiguity and participation among Canadian managers

The purpose of this study is to investigate the moderating effect and the interactive effect of job scope, role ambiguity and participation in decision-making on relationships between career plateauing and outcomes. A cross-sectional survey of 3,065 Canadian managers shows that these job characteristics can contribute to limiting the negative consequences associated with career plateauing. Moreover, in accordance with the theory of work–situation fit, some double moderating effects are found. The attitudes and behaviours of plateaued managers are significantly more positive when their job is richer and offers an opportunity to participate in decision-making. However, contrary to evidence in the literature, results show that reactions to career plateauing are more positive for managers who perceive that their job is richer and their role more ambiguous. Implications and directions for future research are discussed.     

The effects of slack resource of R&D professionals on firm performance: evidence from traditional manufacturing firms in an emerging economy

Abstract

As an important component of organizational human resource slack (HR slack), the slack of research-and-development (R&D) professionals has been studied by several authors. However, it remains unclear whether and how this small component of general HR slack, i.e. the slack of research-and-development professionals (RHR slack), may affect overall firm performance in an emerging economy without much R&D tradition or pro-R&D institutions. Based on two organizational theories, i.e. institutional theory and the resource-based view of the firm (RBV), we propose competing hypotheses on the relationship between RHR slack and firms’ accounting performance. We also examine whether the relationship between RHR slack and firm performance should be linear or curvilinear. Finally, we also test the relationship between RHR slack and other dimensions of firm performance. Several interesting findings have been obtained. For instance, neither the perspective based on institutional theory nor that based on RBV can fully predict all types of RHR slack-performance relationships, be these relationships linear or curvilinear.     

Green process innovation and operational performance: The role of proactive environment strategy,technological capabilities,and organizational learning

With increase in the focus on environmental protection, firms are integrating sustainability issues in process and product innovations. Firms can contribute toward sustainability and also improve operational performance through green innovation practices. However, the adoption of green innovation practices depends on the proactivity of top managers toward environment management. In this paper, we study the relationships between proactive environment strategy, green process innovation (GPRI), and operational performance. Further, we examine the mediating effect of dynamic capabilities (DCs) (technological capabilities and organizational learning) between GPRI and operational performance. The proposed framework is tested by data collected from the Indian manufacturing industries and using partial least squares (PLS) technique. The findings demonstrate proactive environment strategy as an important antecedent for GPRI practices. Second, technological capabilities and organizational learning mediate between GPRI and operational performance. The results of the study are useful for managers in the manufacturing firms, who are interested to implement GPRI practices or who are in the early stage of implementing the GPRI practices.     

Strategic operations management decisions and professional performance in U.S. HMOs

Professional service organizations are becoming an increasingly important segment of the service sector in the U.S. but little attention has been paid to the management of these organizations, particularly in relation to technical performance. This paper reports the findings of a survey of managers of Health Maintenance Organizations (HMOs) which related operations management decisions about organization, workforce management, quality management and planning and control, to clinical process and outcome performance.This research demonstrates that managerial decisions do affect clinical performance in HMOs. These findings have implications for both researchers and practitioners. For researchers, the study provides a framework for future research on the important link between management decisions and technical performance in professional service organizations. For practitioners, this study suggests that technical performance will be enhanced when professional work is appropriately managed.     

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.     

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.     

How information systems help create OM capabilities: Consequents and antecedents of operational absorptive capacity

In contemporary business environments, the ability to manage operational knowledge is an important predictor of organizational competitiveness. Organizations invest large sums in various types of information technologies (ITs) to manage operational knowledge. Because of their superior storage, processing and communication capabilities, ITs offer technical platforms to build knowledge management (KM) capabilities. However, merely acquiring ITs are not sufficient, and organizations must structure information system (IS) designs to leverage ITs for building KM capabilities. We study how technical and strategic IS designs enhance operational absorptive capacity (OAC) – the KM capability of an operations management (OM) department. Specifically, we use a capabilities perspective of absorptive capacity to examine potential absorptive capacity (POAC) and realized absorptive capacity (ROAC) capabilities – the two OAC capabilities that create and utilize knowledge, respectively. Our theory proposes that integrated IS capability, – an aspect of technical IS design – is an antecedent of POAC and ROAC capabilities, and business-IT alignment – an aspect of strategic IS design – moderates the relationship between integrated IS capability and ROAC capability. Combining data gleaned from a multi-respondent survey with archival data from COMPUSTAT, we test our hypotheses using a dataset from 153 manufacturing organizations. By proposing that IS design enables an OM department's KM processes, i.e., the POAC and ROAC capabilities, our interdisciplinary theoretical framework opens the “black box” of OAC and contributes to improved understanding of IS and OM synergies. We offer a detailed discussion of our contributions to the literature at the IS-OM interface and implications for practitioners.     

Linking sourcing and collaborative strategies to financial performance: The role of operational innovation

In this study we investigate the influence of subcontracting-in production related jobs, outsourcing and collaborations with non-supply chain partners on small manufacturing firms' operational innovation. Further, we investigate the mechanism through which these sourcing and collaborative strategies influence small firm performance by focusing on the potential mediating role of operational innovation in the relationships. The structural equation modeling analysis of data collected from 476 small manufacturing firms, suggests that outsourcing, subcontracting-in, and collaborations with non-supply chain partners are positively related to operational innovation. Further, the structural equation modeling results indicate that operational innovation fully mediates the influence that subcontracting-in has on financial performance but partially mediates the influence of outsourcing and collaborations with non-supply chain partners on small firm financial performance. Implications for theory and practice are discussed.