Mitigating uncertainty for industrial service operations: a multi case study
International Journal of Operations & Production Management
ISSN: 0144-3577
Article publication date: 3 May 2016
Abstract
Purpose
The purpose of this paper is to explore the evolution of industrial service uncertainties and the approaches for mitigating these uncertainties. The paper also sheds light on how the interplay of potential uncertainties due to service operation challenges shapes the decisiveness of product-centric businesses.
Design/methodology/approach
To better understand how industrial firms mitigate uncertainties of industrial service provision by their supply chains, the authors adopted a qualitative multi-case logic methodology. The approach is based on a research model of uncertainty avoidance and uncertainty reduction which the authors applied in an exploratory study with three major multi-national firms in the aerospace industry: BAE Systems, Lockheed Martin and Rolls-Royce.
Findings
From the analysis, the authors found that to mitigate industrial service uncertainty, there is a need for aftermarket-oriented organisation, audit-oriented governance, relationship-oriented intelligence and lifecycle-oriented contracts. The authors also found that value uncertainty originating from unpredictability in client needs and project scope and structural uncertainty caused by volatility and variability of business structures are also important quandaries in decision making situations of firms towards their supply chains for industrial services.
Originality/value
The paper makes two useful contributions. First, it provides an assessment of the nature of uncertainty within operations for providing industrial services. Second, the paper identifies orientations for industrial service uncertainty mitigation. Whereas product-centric businesses firms tend to vary in their states for uncertainty avoidance and reduction, the work suggest similar orientations for uncertainty mitigation across these firms.
Keywords
Acknowledgements
This paper was originally selected by the EurOMA 2013 Special Issue Guest editors, Professor Coughlan and Professor Fynes, to be included in the EurOMA 2013 Special Issue. The revision procedure was managed by the same guest editors.
Citation
Durugbo, C. and Erkoyuncu, J.A. (2016), "Mitigating uncertainty for industrial service operations: a multi case study", International Journal of Operations & Production Management, Vol. 36 No. 5, pp. 532-571. https://doi.org/10.1108/IJOPM-04-2015-0196
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited