Search results

The purpose of this paper is to look into production competence theory by proposing and validating a multidimensional construct, and offering additional empirical evidence regarding the contribution of production competence to business performance.

Production competence is defined as a second‐order factor/construct in terms of five underlying dimensions: cost, flexibility, quality, delivery and environmental protection competence. Different scales are used to measure the construct, validated by a multi‐step process. Data from 274 manufacturing firms and structural equation modelling as the main technique are used for the analysis.

The paper suggests that manufacturing capabilities and their alignment with the competitive priorities pursued must be considered to explain the contribution of manufacturing to business performance. The provided evidence suggests that the manufacturing function significantly contributes to business performance, and enables us to conclude that production competence is a determinant of business performance.

Firms should focus on the development of manufacturing capabilities that are key for the market (and consistent with the business strategy). To achieve this, the production function should be integrated into the strategic planning process of the overall business strategy.

Most research works to date deal with production competence as a one‐dimensional construct and reduce its measurement to a single index, fussing variables of different types. This paper provides a valid multidimensional operationalisation of production competence, considering environmental protection as a fifth manufacturing objective. It also offers additional empirical evidence regarding the positive link between production competence and business performance.

Presents a framework of manufacturing competence, and tests its theoretical validity using empirical data from a large‐scale survey. Interesting findings include: the regression analysis shows that manufacturing competence is better represented when low‐priority capabilities are not explicitly considered; the manufacturing competence index appears to have more significant statistical relationships with some performance measures (such as the return on assets and return on sales) than with others – manufacturing matters, but not equally to all the financial and market performance; the concept of manufacturing competence is found to be more influential in determining the business performance in the electronics sector than in the machinery industry. Does manufacturing competence matter equally in all industries, or does it matter more in a specific industry? If so, what makes manufacturing competence so important? Advocates further study to answer these questions and to complete the theory of manufacturing competence.

The purpose of this paper is to seek remedy to two major flaws of the production competence literature, which concern: the way the production competence construct is operationalized and the way its effects on performance are measured.

The paper proposes to measure production competence as the two-dimensional operational level construct it actually is, and to use Slack’s (1994) importance-performance matrix to study its business level performance effects. The three hypotheses developed are tested using a subsample of the International Manufacturing Strategy Survey database, which includes 465 manufacturing companies from 21 countries.

The study offers additional empirical support for production competence theory. Going beyond supporting existing theory, the results give more detailed insight by indicating that low operational performance on even one important competitive factor leads to lower business performance (order-losing effect); excessive investment in increasing operational performance on any less important competitive factor does not necessarily lead to higher business performance.

Using a large empirical dataset, the study shows that the importance-performance matrix is a useful tool for decision makers to assess and improve their company’s manufacturing strategy: it indicates how to prioritize between improvement efforts to positively contribute to business performance.

The paper offers a novel approach to operationalize production competence. The importance-performance analysis approach adopted in this study avoids the two major drawbacks of previous production competence studies and offers an appropriate method to assess the impact of production competence on business performance.

Agile manufacturing is largely dependent on the capabilities of its people to learn and evolve with change. However, while agile manufacturing uses e‐commerce enabled technology in a decentralized organizational setting, it remains unclear how these individual capabilities should be linked to other organizational resources to create an agile organization. Another important modern management research perspective is the internal resource‐based perspective, resulting in a phenomenon called competence‐based competition with renewed attention for competence management. Competence management comprises the management, building, leveraging and deployment of strategic and operational competencies, the causal relationships and linkages between them, and the way competencies are embedded in organizational and individual resources. In this paper, we explore the relation between agile management and time‐based competence management, and study its adoption in small batch discrete parts manufacturing environments with the help of a coarse fact‐finding survey research.

To cope with the increasing challenges of globalisation, various manufacturing companies have established intra-company manufacturing networks. The purpose of this paper is to link the strategic network targets (i.e. accessibility, thriftiness represented by economies of scale and economies of scope, mobility, and learning) with the capabilities and characteristics of the constituting sites of the manufacturing network and thus facilitate the identification of mismatches and the discussion of possible development paths for the network.

The authors derive a conceptual framework from the literature which is tested with a single case; a manufacturing network consisting of eight manufacturing sites. Case data were collected based on 24 interviews with operations managers at network level and a standardised online survey among the sites’ management teams.

Results indicate that manufacturing network and site levels need to be related when striving for a fit between manufacturing strategy, network strategy, and site capabilities and characteristics.

Single case studies have only limited generalisability. Nevertheless, the case demonstrates the usefulness of several dimensions when analysing manufacturing networks on site and network level.

This paper represents the first attempt to link strategic targets of intra-company manufacturing networks with site capabilities and characteristics. Thereby, it provides a theoretical basis for future research on the relationship between strategic targets of manufacturing networks and their fulfilment. The developed manufacturing site portfolio, moreover, extends the site role typology discussion by a multi-dimensional perspective and represents a starting point for a multi-faceted discussion of site roles.

The purpose of this paper is to develop and justify a theoretical framework for analyzing the relationship between manufacturing strategy, business strategy, time-based manufacturing competence, capability and competitiveness and their impact on firm performance for firms operating in the manufacturing sector. Many executives and scholars have argued that time is an important component for developing a brilliant strategy to achieve a sustainable competitive advantage for the firm.

This paper provides a theoretical framework primarily concerned with the relationship between time-based manufacturing competence, competitive priorities and firm performance. The framework suggests that firms focusing on time as a strategic factor at both strategic levels – business strategy and manufacturing strategy – can achieve a multi-competitive advantage, and, in turn, high performance.

To realize the level of performance associated with time-based manufacturing competence, it is essential for firms to identify the areas in which time can be reduced. These include reduction in design lead time, product concept to production; time-based competition for product-to-market firms; time-based manufacturing competence; product development activities; fast-to-product; and customer service.

This article provides a theoretical framework for linking manufacturing strategy to business strategy and performance to help expand the body of knowledge for other researchers to follow.

The purpose of this paper is to present competences that are highly relevant for manufacturing today and tomorrow. Following a discussion on the concept of “competence”, a variety of competences are presented and classified into the four facets professional, methodological, social, and self-competence.

Using an exploratory method, the paper aims at describing relevant manufacturing-related competences with the help of an online survey. Experts, mostly from the production management or HR departments of manufacturing companies in Germany, were polled and asked to evaluate the relevancy of a list of competences for manufacturing.

For the experts, flawless execution and quality awareness are competences with a very high relevance, whereas analytical abilities have very little meaning. The experts questioned expect openness to change to undergo the strongest increase in importance.

This paper shows competences particularly relevant for future production, so that companies can derive specific competence development measures. The findings are descriptive only, but should enable companies to identify specific competence gaps and to select measures to develop competences.

This paper attempts to bridge the gap between academics and practice by outlining relevant manufacturing competences that have been evaluated by managers. This is in contrast to most scientific research that classifies manufacturing-related competences as important based on own assessment.

Although, the advanced manufacturing technologies (AMT) benefits and potentialities are already known, issues regarding the management process, from the planning to the implementation, represent the main barriers to the effective use of such technologies. The actual benefits of the AMT incorporation to the manufacturing system, classified as systemic, will only be obtained and recognized if the current design and organizational structure become compatible with the change being introduced. The purpose of this paper is to present the rationality for the organizational design development related to AMT adoption.

The developed theoretical synthesis integrates two refined and tested frameworks: the organizational design and the strategic selections of AMT. The company's manufacturing strategy, specifically the manufacturing vision, defines a set of statements, the required competences, which constitute the organizational design specifications. By approaching the AMT as resources related to the manufacturing vision competences, it could be assured the cohesion between the organizational design and the technology to be introduced. The theoretical development is illustrated by some empirical data, particularly in the cases of competences, capabilities and manufacturing vision statements formulation.

This paper is a theoretical construction that organizes and synthesizes the issues that are being studied in the main theme: “The adoption of the automated systems,” focusing the discussion on the manufacturing strategy and organizational design domains.

The generated framework is theoretical in essence and needs to be tested, although the theoretical exercise integrates tested frameworks.

The understanding of the relationships between the process of AMT adoption and the required changes in the organization contribute to the attainment of the benefits related to those technologies.

The main value of the present paper is the theoretical exercise to generate a set of recommendations of the organizational design‐revision process. The systemic design approached used will found future research to generate practical solutions for the design process, contributing to the AMT integration to the manufacturing system.

A vendor's capabilities are recognized as one of the most important factors for success in outsourcing. However, there is a lack of understanding of how vendors manage their capabilities throughout the outsourcing process. With an aim to contribute to filling this existing gap, the purpose of this paper is to explore how vendors deploy their capabilities in order to win, run and renew the outsourcing contracts.

The research question has been derived by integrating a resource‐based view theory with a model of a vendor's process in outsourcing. A multiple‐case study of three contract electronic manufacturers has been employed to explore the research question.

The results show that for achieving their outsourcing objectives, vendors use different capability mixes: the winning, the running, and the renewing. These mixes are created through utilization of different portfolios of competences (balanced, unit‐dominant, and versatile) and capabilities (permanent and temporary) which need to be deployed in the right combination (deployment strategy) adequate for the stage of the industry dynamics in which vendors operate. The research also indicated the importance of the relationship management capability for the success of outsourcing arrangements in the electronic manufacturing service (EMS) provision industry.

New research involving more case companies would improve the validity of the conclusions made in this paper. Results also suggest that more research into relationship management capability in the context of the EMS industry will be a fruitful area for future studies.

Vendors who seek to advance in the industry's value chain need to expand their portfolio of competences and adapt their deployment strategies to new, more dynamic and volatile environments. The paper proposes three different deployment strategies for three different operational contexts.

In contrast with the existing static approach towards studying vendor's capabilities in outsourcing, the paper's findings show that vendors use different mixes of capabilities throughout the outsourcing process. The authors have been able to show how those capability mixes are formed. In addition, it was found that relationship management is an important capability for consideration when studying and practicing manufacturing outsourcing.

The purpose of this paper is to explore the relationship of strategic manufacturing effectiveness utilizing the four-stage model of Hayes and Wheelwright (H-W) with overall performance of manufacturing, market alignment and production competence (PC). In addition, it attempts to understand the relationship of strategic manufacturing effectiveness with manufacturing capability development modes, strategic groups of companies and the nature of improvement programs being employed.

Structured questionnaire was used to capture data from manufacturing organizations. Responses from managers of 47 Indian manufacturing companies were used to test the seven propositions that were developed to examine the paradigms of manufacturing competence.

The analysis revealed that the strategic manufacturing effectiveness of manufacturing companies based on H-W’s four-stage model has significant positive correlation with the overall performance of manufacturing and PC of the company. Further, the analysis substantiated the relationship of strategic manufacturing effectiveness with capability development process and the nature of improvement programs.

This exploratory study is based on a small sample of manufacturing companies with diversity and hence it may not be representative of all industry sectors. Second, it has used several scales for measuring the relevant constructs which themselves are not proven, hence, the findings should be taken with caution.

This is an initial research focussing on the relationships among different elements of manufacturing competence such as manufacturing capabilities, PC, manufacturing capability development mode and overall performance of manufacturing with strategic manufacturing effectiveness using H-W model. H-W model was primarily proposed as an audit tool for managers, was hitherto not adequately studied in relation to other paradigms of manufacturing competence.