Product configuration,ambidexterity and firm performance in the context of industrial equipment manufacturing

The practice of configuring products to individual customer orders has found application in a variety of industry contexts, but little is known about the specific capabilities that firms develop to successfully compete when offering configurable products. Our research begins to fill this gap in the context of industrial equipment manufacturing. Drawing from the ambidexterity literature, we argue that firms have to balance dual goals of reducing variation and promoting variation in their product configuration activities by fostering two distinct firm-level capabilities: product configuration effectiveness (PCE) and product configuration intelligence (PCI). Specifically, we hypothesize that the simultaneous presence of PCE and PCI—that is, product configuration ambidexterity (PCA)—drives superior firm responsiveness and, indirectly firm sales and operating margin. However, we also contend that responsiveness gains through PCA can diminish with product complexity and can increase operating cost. We test these hypotheses by collecting both primary and secondary data from a sample of 108 European industrial equipment manufacturing firms. Results from our analyses indicate that PCA has an indirect effect through responsiveness on sales and operating cost but not on operating margin, with this effect diminishing with product complexity. Taken together, our results suggest that investment in developing PCA may represent a conundrum for industrial equipment manufacturing firms, because it translates into market but not financial advantages, and it is intertwined with product design decisions. We conclude this study with a discussion of the findings for theory and practice.     

Supply chain collaboration: Impact on collaborative advantage and firm performance

Facing uncertain environments, firms have strived to achieve greater supply chain collaboration to leverage the resources and knowledge of their suppliers and customers. The objective of the study is to uncover the nature of supply chain collaboration and explore its impact on firm performance based on a paradigm of collaborative advantage. Reliable and valid instruments of these constructs were developed through rigorous empirical analysis. Data were collected through a Web survey of U.S. manufacturing firms in various industries. The statistical methods used include confirmatory factor analysis and structural equation modeling (i.e., LISREL). The results indicate that supply chain collaboration improves collaborative advantage and indeed has a bottom-line influence on firm performance, and collaborative advantage is an intermediate variable that enables supply chain partners to achieve synergies and create superior performance. A further analysis of the moderation effect of firm size reveals that collaborative advantage completely mediates the relationship between supply chain collaboration and firm performance for small firms while it partially mediates the relationship for medium and large firms.     

How supply chain architecture and product architecture impact firm performance: An empirical examination

In order to enhance performance, manufacturing firms are building various capabilities and utilizing supply chain networks that are geographically dispersed around the globe. This study examines how decisions related to supply chain architecture and product architecture influence organizational competitiveness. Building on the co-specialization perspective, we evaluate the performance implications of product modularity and supply chain agility. While, product modularity constitutes a product configuration related to sourcing and assembling of products, supply chain agility is a supply chain configuration related to velocity (sensing, comprehending, and responding) and visibility (supplier network, internal operations, and external environment). Both the product and supply chain architectural decisions can impact performance, individually and in conjunction with each other. We empirically test the hypothesized relationships using data collected from 103 manufacturing firms. Results show that supply chain agility and product modularity directly enhance responsiveness and enable organizations to reduce cost. Furthermore, supply chain agility partially mediates the relationship between product modularity and both responsiveness and cost reduction. We elaborate on the key contributions of this study for both research and practice, discuss limitations, and also offer various avenues for further research.     

Relationships among open innovation,innovative performance,government support and firm size: Comparing Brazilian firms embracing different levels of radicalism in innovation

This work extends knowledge concerning the relationships among open innovation, innovative performance and government support for innovation within Brazilian firms. Data were obtained from two different firm samples (Sample A, on incremental innovation, and Sample B, on radical innovation). The main research results are as follows. First, in considering government support for innovation, Sample B, based on radical innovation, played a superior and stronger role than Sample A. Secondly, for both samples, the cooperation of external firms has a positive effect on firms’ innovative performance, which was positively controlled by the size of the firms. Thirdly, in general, radical innovation requires synergy and a more intense focus regarding the constructs considered therein. This work also adds value in methodological terms, as this is the first research to have tested different models of samples with different levels of radicalism in innovation.     

Advanced manufacturing technology: Implementation policy and performance

This article investigates the relationships between adoption of various advanced manufacturing technologies (AMT), the way that firms plan for and implement them, and their eventual performance. Data obtained from 125 manufacturing firms in the U.S. is used to test several hypotheses which were derived from an extensive review of the AMT implementation literature. The four research questions that drive this study are: (1) What types of planning and installation activities have firms utilized to support their AMT adoptions?, (2) do differences in the level of effort applied to these activities have any impact on the eventual performance of the systems?, (3) are firms that are using integrated technologies, such as FMC/FMS and CIM, applying higher levels of effort on these planning and installation activities than other firms?, and (4) Are these firms achieving higher levels of success than firms that are not using the integrated technologies. The results indicate that firms adopting integrated technologies had exerted significantly higher levels of effort on strategic planning and team-based project management and had also achieved higher levels of performance across a wider range of performance factors than other firms. In addition, firms that had exerted higher levels of effort on developing human factors appeared to be achieving more of the benefits of AMT than their counterparts. The overall results and the research and practical implications of this study are discussed.     

Measuring the impact of work reorganization on firm performance: evidence from French manufacturing, 1995–1999

In this paper, we apply the method of selective matching to estimate the causal effect of organizational changes on employment, stock of capital, value added, and factor productivity. Derived from a panel of 2404 French manufacturing firms in 1997, our estimates show that work reorganization improves firm performance overall through a more efficient use of labor and capital, without requiring any increase in the factors of production.     

Assessing the impact of green supply chain practices on firm performance in the Korean manufacturing industry

As a growing number of customers tend to view corporate social responsibility (CSR) as a key purchase decision criterion, demands for CSR including environmental sustainability have accelerated in today's business world. To meet such demands, many firms consider embracing environment-friendly business practices. However, many firms are still hesitant to implement those practices due to sceptical views about their real managerial benefits. Although the previous literature confirms the positive link between a firm's commitment to environmental sustainability and its performance, the varying degree of impact of different kinds of environment-friendly supply chain practices on the firm's operational performance is still unknown. To fill the void left by prior research, this paper aims to classify various types of green supply chain management (GSCM) practices and then assess the impact of each of these distinct types on the firm's operational performances (especially manufacturing and marketing performance). Also, this paper examines how the firm's organisational profiles such as firm size affect the particular firm's choice of GSCM practices. Our experimental results reveal that the chosen type of GSCM practices influences the firm's performance differently.     

The influence of intelligent manufacturing on financial performance and innovation performance: the case of China

ABSTRACT

Artificial intelligence is increasingly used in advanced manufacturing systems to realise intelligent manufacturing. However, there is still a lack of empirical research on the impact of intelligent manufacturing on enterprise performances, especially for China. The author adopts the enterprise panel data of intelligent manufacturing implemented by China’s manufacturing industry in 2014 to 2019, and uses propensity score matching with difference in differences (PSM-DID) method to investigate the impact of intelligent manufacturing on financial performance and innovation performance. The research yields two main conclusions. First, the implementation of intelligent manufacturing has a significant role in promoting the financial performance and innovation performance of manufacturing enterprises. Second, technology-intensive industries improve the quantity of innovation by implementing intelligent manufacturing, thus promoting the improvement of short-term financial performance, but the improvement of innovation quality has a negative impact on short-term financial performance. In labour-intensive industries, the relationship between financial performance and innovation performance is not obvious.     

High-performance work systems and firms' operational performance: the moderating role of technology

This paper analyses the moderating effect of technology on the potential impact of high-performance work systems (HPWS) on firms' operational performance. The paper distinguishes between production technology and the technological intensity of the industry. This potential effect is analysed in a sample of 965 Spanish manufacturing firms. Results support the moderating role of the technological intensity of the industry, while qualifying the hypothesized moderating effect of production technology.     

Contingency relationships of firm size,TQM duration,unionization, and industry context on TQM implementation—A focus on total effects

Past TQM literature has been inconclusive in resolving the validity of the universalistic approach versus the contingency approach of TQM implementation. In this paper we contribute to the resolution of this debate by using a total effects approach within the contingency perspective. We propose a culture-quality system design-outcomes framework for TQM implementation. We then use this framework to study the differences in total effects relationships among TQM constructs across four contingencies, firm size, TQM duration, unionization, and industry type. Data from a sample of 394 plants (SIC codes 20 through 39) are used to test the validity of our contingency model. Our results revealed that firm size, TQM duration, and industry type moderate the influence of total effects of culture (top management commitment, customer focus, and trust) on final outcomes (process quality, product quality, and customer satisfaction). These contingencies also moderate the influence of total effects of quality system design (design management, training, empowerment, quality information usage, supplier quality management, and process quality management) on final outcomes. The strongest contributor to variation in total effects across groups was industry type, followed by size and then TQM duration. To a lesser extent, unionization was a moderator in total effects relationships. These findings uniquely contribute to the emerging contingency theory of TQM implementation.     

Relationships between implementation of TQM, JIT, and TPM and manufacturing performance

Research on Total Quality Management (TQM), Just-in-Time (JIT) and Total Productive Maintenance (TPM) generally investigates the implementation and impact of these manufacturing programs in isolation. However, many researchers believe and argue conceptually the value of understanding the joint implementation and effect of manufacturing programs. This study investigates the practices of the three programs simultaneously. We find that there is evidence supporting the compatibility of the practices in these programs and that manufacturing performance is associated with the level of implementation of both socially- and technically-oriented practices of the three programs.     

Computer-integrated manufacturing and high performance work system: the case of Taiwan

This study investigates the relationships between computer-integrated manufacturing (CIM) and high-performance work system (HPWS) that can arguably improve human capital in the firm and enhance the effectiveness of these advanced manufacturing technologies. Our data were drawn from two surveys of Taiwanese manufacturing establishments in 1998 and 2005. Results showed that high-degree CIM was positively associated with the practices of the each HR practice and HPWS, including high pay level, rigorous selection, extensive training, developmental performance management, performance- and competency- based rewards as well as employee stock ownership.     

Human resource management systems,employee well-being,and firm performance from the mutual gains and critical perspectives: The well-being paradox

In this study, we explored the additive, interactive, and nonlinear relationships among human resource management (HRM) systems, employee well-being, and firm performance. Based on a sample of 14,384 employees nested within 1,347 firms, we obtained three main findings. First, HRM systems yield a performance effect that exceeds the effect of single practice, suggesting positive synergies among HRM practices. Second, the opportunity bundle has a positive impact on firm performance, but when integrating it with skills and motivation bundles, the result becomes negative, indicating dis-synergy of interactions among HRM bundles. Third, at moderate levels of adoption, HRM practices are positively correlated with employee well-being and higher levels of commitment, job satisfaction, and management relations, as well as lower levels of anxiety. However, at high levels, the relationship is less positive and even turns negative with lower levels of job satisfaction and management relations. To close, we present research implications and future directions after discussing our results.     

Linking green purchasing capabilities to environmental and economic performance: The moderating role of firm size

This study identifies firms’ green purchasing capabilities, classified into operational capabilities and dynamic capabilities, and measures their effects on the environmental and economic performance of a firm. We developed instruments to measure operational green purchasing capabilities and dynamic green purchasing capabilities. This study also investigates the moderating effect of firm size on the relationship between green purchasing capabilities and firm performance. The structural equation model (SEM) is used to analyse 239 responses from Japanese manufacturing companies. The results indicate that their green purchasing capabilities positively affect environmental and economic performance. Operational capabilities and dynamic capabilities have different levels of effects on green purchasing performance. A further analysis of the moderating effect of firm size shows that the high economic performance of green purchasing relies on the level of dynamic capabilities rather than firm size.     

Propensity to firm creation: empirical research using structural equations

The identification of the entrepreneurs’ characteristics and the knowledge of the entrepreneurial profile of university students have been assuming a growing importance in the development of educational programs directed towards the entrepreneurship and start-up processes. This study aims to identify the factors that most contribute for the intention to start up a business. The research also tries to identify the profile of a potential entrepreneur student concerning several characteristics: personal attributes, family, demographic variables and motivations. Research findings include the idea that entrepreneurship education is the most relevant factor in what concerns the propensity to business creation. On the other side, personal characteristics have an important role in shaping motivation to start-up a business and perceived hurdles have a negative impact in the intention to start-up. The results may be relevant when developing an adequate educational program directed to the entrepreneurship education and start-up processes.     

TQM practice in maquiladora: Antecedents of employee satisfaction and loyalty

In this study, we investigate the transferability of TQM practices to offshore manufacturing firms by validating direct and indirect relationships among top management commitment, HR-focused TQM practices, employee satisfaction, and employee loyalty. Our research objective is to isolate critical TQM practices that would enhance employee satisfaction and loyalty among maquiladora workers. On-site surveys were conducted at two leading maquiladora firms that have long implemented TQM. The statistical results indicate that employee empowerment, teamwork, and employee compensation have a significant and positive influence on employee satisfaction. The improved employee satisfaction leads to a higher level of employee loyalty. In addition, the results indicate that the effects of top management commitment on employee empowerment and teamwork are significantly mediated by employee training, implying that the success of employee empowerment and quality teams can be dependent upon the level of employee training.     

Corporate environmental performance,environmental management and firm risk

Using a sample of 1,632 U.K. firm‐year observations from 2002 to 2013, this paper investigates the impact of multidimensional corporate environmental performance (CEP) on firm risk. Considering two dimensions of CEP, namely environmental management performance (EMP) and environmental operational performance (EOP), we find that EMP serves as an effective mechanism in reducing firm risk, and such an effect is mainly driven by the manufacturing sector. Meanwhile, there is no clear association between EOP and firm risk. However, our findings highlight a moderating effect of EOP on the relationship between negative EMP and firm risk. This provides new insights into the value of multidimensional CEP and suggests that the complex relationship between outcome‐ and process‐based environmental performance is important for understanding the real effects of CEP on firm risk. Our results have important implications for managerial decision‐making in strategy and risk management, as well as for policymaking in environmental regulation.     

Corporate governance, Sarbanes-Oxley, and small-cap firm performance

The recent debate on the onerous costs of compliance with the Sarbanes-Oxley Act has primarily focused on small firms. I study the effects of SOX compliance on such firms by comparing the performance of Canadian small-cap firms that are subject to SOX provisions with those that are not, while: (a) taking into account firms’ internal and external governance mechanisms, including the market for corporate control, and (b) accounting for the simultaneous interactions between alternative governance mechanisms and firm performance. Firms subject to Sarbanes-Oxley experienced an incremental increase in market valuation ranging between 15.7% and 34% depending on the measure of board independence used in the estimation. Some sub-optimal deployment of the endogenous governance mechanisms is observed, while the market for corporate control serves as a positive disciplining factor.     

Bundles of HRM practices and performance: empirical evidence from a Latin American context

This article examines the extent to which the configuration of HRM practices in bundles and the interactions among them have a significant impact on manufacturing outcomes. Using a unique data set from a survey of a representative sample of the whole Uruguayan manufacturing industry, several hypotheses related to interactions between ability–motivation–opportunity bundles of HRM practices are tested. Analysis of 150 manufacturing plants partially highlights the existence of hierarchy between bundles, being the bundle of motivation‐enhancing HRM practices the most important to explain the enhanced manufacturing outcomes. Based on this bundle of practices, synergistic interactions with both ability and opportunity bundles of HRM practices were observed to explain different performance measures.