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Article
Publication date: 14 August 2023

Oliver von Dzengelevski, Torbjørn H. Netland, Ann Vereecke and Kasra Ferdows

When is it more profitable for multinational manufacturers to manufacture in high-cost environments and when in low-cost environments? While the literature offers many cues to…

Abstract

Purpose

When is it more profitable for multinational manufacturers to manufacture in high-cost environments and when in low-cost environments? While the literature offers many cues to answer this question, too little empirical research directly addresses this. In this study, we quantitatively and empirically investigate the financial effect of companies' production footprint in low-cost and high-cost environments for different types of production networks.

Design/methodology/approach

Using the data of 770 multinational manufacturing companies, we analyze the relationship between production footprints and profitability during four calendar semesters in 2018 and 2019 (N = 2,940), investigating the moderating role of companies' production network type.

Findings

We find that companies with networks distinguished by both high levels of product complexity and process sophistication profit the most from producing to a greater extent in high-cost countries. For these companies, shifting production to low-cost countries would be associated with negative performance implications.

Practical implications

Our findings suggest that the production geography of companies should be attuned to their network type, as defined by the companies' process sophistication and product complexity. Manufacturing in low-cost countries is not always the best choice, as doing so can adversely affect profits if the products are highly innovative and the production processes are complex.

Originality/value

We contribute to the scarce empirical literature on managing global production networks and provide a data-driven analysis that contributes to answering some of the enduring questions in this critical area.

Details

International Journal of Operations & Production Management, vol. 44 no. 5
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 18 April 2024

Prajakta Chandrakant Kandarkar and V. Ravi

Industry 4.0 has put forward a smart perspective on managing supply chain networks and their operations. The current manufacturing system is primarily data-driven. Industries are…

Abstract

Purpose

Industry 4.0 has put forward a smart perspective on managing supply chain networks and their operations. The current manufacturing system is primarily data-driven. Industries are deploying new emerging technologies in their operations to build a competitive edge in the business environment; however, the true potential of smart manufacturing has not yet been fully unveiled. This research aims to extensively analyse emerging technologies and their interconnection with smart manufacturing in developing smarter supply chains.

Design/methodology/approach

This research endeavours to establish a conceptual framework for a smart supply chain. A real case study on a smart factory is conducted to demonstrate the validity of this framework for building smarter supply chains. A comparative analysis is carried out between conventional and smart supply chains to ascertain the advantages of smart supply chains. In addition, a thorough investigation of the several factors needed to transition from smart to smarter supply chains is undertaken.

Findings

The integration of smart technology exemplifies the ability to improve the efficiency of supply chain operations. Research findings indicate that transitioning to a smart factory radically enhances productivity, quality assurance, data privacy and labour efficiency. The outcomes of this research will help academic and industrial sectors critically comprehend technological breakthroughs and their applications in smart supply chains.

Originality/value

This study highlights the implications of incorporating smart technologies into supply chain operations, specifically in smart purchasing, smart factory operations, smart warehousing and smart customer performance. A paradigm transition from conventional, smart to smarter supply chains offers a comprehensive perspective on the evolving dynamics in automation, optimisation and manufacturing technology domains, ultimately leading to the emergence of Industry 5.0.

Details

Journal of Manufacturing Technology Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 18 April 2024

Sehrish Huma, Sidra Muslim and Waqar Ahmed

The purpose of this paper is to empirically investigate the impact of organizational intellectual capital (IC) components on absorptive capacity (ACAP) such as potential…

Abstract

Purpose

The purpose of this paper is to empirically investigate the impact of organizational intellectual capital (IC) components on absorptive capacity (ACAP) such as potential absorptive capacity (PACAP) and realized absorptive capacity (RACAP). Furthermore, it attempts to investigate the mechanism through which PACAP and RACAP jointly influence innovation strategies (i.e.) exploitative and exploratory innovations.

Design/methodology/approach

This is an explanatory research using a deductive approach. This study uses survey data from 184 manufacturing export firms analyzed through partial least squares structural equation modelling.

Findings

The results have found that the cognitive and social capital of a firm positively affects PACAP and RACAP, whereas relational capital has a significant effect on RACAP. Moreover, the study reveals that both potential and realized absorptive capacities considerably lead to the development of organizational exploitative and exploratory innovation strategies.

Research limitations/implications

The research focused on two driving factors, i.e. IC components and ACAP dimensions, and overlooked how each component of IC and ACAP influences ambidextrous innovative strategy.

Practical implications

Providing managers with insights about the critical role of developing IC to facilitate the transfer and exchange of crucial absorptive capacity necessary for ambidextrous innovative strategy.

Originality/value

This study makes a significant contribution to the existing literature by highlighting the importance of ACAP and provides useful insights for firms in developing economies to improve their exploitative and exploratory innovation capability. This study likewise reveals the significance of the four dimensions of IC, which can facilitate bringing in knowledge from developing economies.

Details

Review of International Business and Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 18 April 2024

Ramads Thekkoote

This paper uses the complex proportionality assessment (COPRAS) method to examine the driving factors of Industry 4.0 (I4) technologies for lean implementation in small and…

Abstract

Purpose

This paper uses the complex proportionality assessment (COPRAS) method to examine the driving factors of Industry 4.0 (I4) technologies for lean implementation in small and medium-sized enterprises (SMEs).

Design/methodology/approach

Adopting I4 technology is imperative for SMEs seeking to maintain competitiveness within the manufacturing sector. A thorough understanding of the driving factors involved is required to support the implementation of I4. For this objective, the multi-criteria decision-making (MCDM) tool COPRAS was used to efficiently analyze and rank these driving elements based on their importance. These factors can help small and medium-sized firms (SMEs) prioritize their efforts and investments in I4 technologies for lean implementation.

Findings

This study evaluates and prioritizes the nine I4 factors according to the perceptions of SMEs. The ranking offers significant insights into the factors SMEs consider more accessible and effective when adopting I4 technologies.

Originality/value

The author's original contribution is to examine I4 driving factors for lean implementation in SMEs using COPRAS.

Details

The TQM Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-2731

Keywords

Article
Publication date: 22 December 2023

Luay Jum'a and Malak Bushnaq

The study aims to examine the impact of three types of supply chain integration (SCI) on supply chain flexibility (SCF), investigate the impact of SCF on supply chain performance…

Abstract

Purpose

The study aims to examine the impact of three types of supply chain integration (SCI) on supply chain flexibility (SCF), investigate the impact of SCF on supply chain performance (SCP) and analyse the indirect impact of SCI on SCP by considering the mediating role of SCF within the manufacturing sector of Jordan.

Design/methodology/approach

This study used a quantitative approach to validate the study model. An online self-completed questionnaire was used to gather data from 219 participants from managers in various Jordanian manufacturing firms. SmartPLS software was used to perform structural equation modelling to test the formulated hypotheses.

Findings

Based on the findings of the study, firms in Jordan's manufacturing sector would benefit from developing an integrative and flexible supply chain to boost SCP in the present volatile, uncertain, complex and speculative market. In addition, SCP was significantly influenced by investments in supply chain management practices related to SCI and SCF. Moreover, SCF significantly moderated the relationship between SCI and SCP. Thus, SCI and SCF assisted firms in reaching their highest potential performance through increased productivity, decreased expenses and increased satisfaction of their customers.

Research limitations/implications

The study employed a cross-sectional design using SCF as a single construct. Future research should look into the specific type of SCFs that have an immense effect on SCP and how these types are affected by the three types of SCI. Furthermore, future research ought to employ probability sampling techniques to improve the generalizability of results or using a longitudinal data-collection design. Finally, additional research should be conducted to validate the findings of this study by replicating it in other specific industries or countries.

Originality/value

The study fills an identified gap based on previous studies by exploring the linkages between SCI, SCF and SCP in the context of manufacturing sector. Moreover, based on the relational view theory, the study proposed an assessment mechanism for SCP for firms based on the link between three types of SCI and SCF.

Details

Journal of Advances in Management Research, vol. 21 no. 2
Type: Research Article
ISSN: 0972-7981

Keywords

Article
Publication date: 29 December 2022

Atul Kumar Sahu, Sri Yogi Kottala, Harendra Kumar Narang and Mridul Singh Rajput

Supply chain management (SCM)-embedded valuable resources, such as capital, raw-materials, products, partners, customers and finished inventories, where the evaluation of…

100

Abstract

Purpose

Supply chain management (SCM)-embedded valuable resources, such as capital, raw-materials, products, partners, customers and finished inventories, where the evaluation of environmental texture and flexibilities are needed to perceive sustainability. The present study aims to identify and evaluate the directory of green and agile (G-A) attributes based on decision support framework (DSF) for identifying dominating measures in SCM.

Design/methodology/approach

DSF is developed by exploiting generalized interval valued trapezoidal fuzzy numbers (GIVTFNs). Two technical approaches, i.e. degree of similarity approach (DSA) and distance approach (DA) under the extent boundaries of GIVTFNs, are implicated for data analytics and for recognizing constructive G-A measures based on comparative study for robust decision. A fuzzy-based performance indicator, i.e. fuzzy performance important index (FPII), is presented to enumerate the weak and strong G-A characteristics to manage knowledge risks in allied business environment.

Findings

The modeling is illustrated from the insights of decision-makers for augmenting business value based on cognitive identification of measures, where the best performance score is identified by the “sustainable packaging” under the traits of green supply chain management (GSCM). “The use of Web-based applications” under the traits of agile supply chain management (ASCM) and “Outsourcing flexibility” under traits of ASCM is found as the second and third most significant performance characteristics for business sustainability. Additionally, the “Reutilization (recycling) and reprocessing” under GSCM in manufacturing and “Responsiveness and speed toward customers needs” under ASCM are found difficult in attainment.

Research limitations/implications

The G-A evaluation will assist in attaining performance excellence in day-to-day operations and overall functioning. The outcomes will help executives to plan strategic objectives and attaining success.

Originality/value

To reinforce the capabilities of SCM, wide extent of G-A dimensions are presented, concept of FPII is reported to manage knowledge risks based on identification of strong attributes and two technical approaches, i.e. DSA and DA under GIVTFNs are presented for attaining robust decision and directing managerial decision-making process.

Details

Journal of Global Operations and Strategic Sourcing, vol. 17 no. 2
Type: Research Article
ISSN: 2398-5364

Keywords

Open Access
Article
Publication date: 9 April 2024

Krisztina Demeter, Levente Szász, Béla-Gergely Rácz and Lehel-Zoltán Györfy

The purpose of this paper is to investigate how different manufacturing technologies are bundled together and how these bundles influence operations performance and, indirectly…

Abstract

Purpose

The purpose of this paper is to investigate how different manufacturing technologies are bundled together and how these bundles influence operations performance and, indirectly, business performance. With the emergence of Industry 4.0 (I4.0) technologies, manufacturing companies can use a wide variety of advanced manufacturing technologies (AMT) to build an efficient and effective production system. Nevertheless, the literature offers little guidance on how these technologies, including novel I4.0 technologies, should be combined in practice and how these combinations might have a different impact on performance.

Design/methodology/approach

Using a survey study of 165 manufacturing plants from 11 different countries, we use factor analysis to empirically derive three distinct manufacturing technology bundles and structural equation modeling to quantify their relationship with operations and business performance.

Findings

Our findings support an evolutionary rather than a revolutionary perspective. I4.0 technologies build on traditional manufacturing technologies and do not constitute a separate direction that would point towards a fundamental digital transformation of companies within our sample. Performance effects are rather weak: out of the three technology bundles identified, only “automation and robotization” have a positive influence on cost efficiency, while “base technologies” and “data-enabled technologies” do not offer a competitive advantage, neither in terms of cost nor in terms of differentiation. Furthermore, while the business performance impact is positive, it is quite weak, suggesting that financial returns on technology investments might require longer time periods.

Originality/value

Relying on a complementarity approach, our research offers a novel perspective on technology implementation in the I4.0 era by investigating novel and traditional manufacturing technologies together.

Details

Journal of Manufacturing Technology Management, vol. 35 no. 9
Type: Research Article
ISSN: 1741-038X

Keywords

Abstract

Details

Journal of Global Operations and Strategic Sourcing, vol. 17 no. 2
Type: Research Article
ISSN: 2398-5364

Article
Publication date: 4 October 2021

Adeel Akmal, Nataliya Podgorodnichenko, Richard Greatbanks, Jeff Foote, Tim Stokes and Robin Gauld

The various quality improvement (QI) frameworks and maturity models described in the health services literature consider some aspects of QI while excluding others. This paper aims…

Abstract

Purpose

The various quality improvement (QI) frameworks and maturity models described in the health services literature consider some aspects of QI while excluding others. This paper aims to present a concerted attempt to create a quality improvement maturity model (QIMM) derived from holistic principles underlying the successful implementation of system-wide QI programmes.

Design/methodology/approach

A hybrid methodology involving a systematic review (Phase 1) of over 270 empirical research articles and books developed the basis for the proposed QIMM. It was followed by expert interviews to refine the core constructs and ground the proposed QIMM in contemporary QI practice (Phase 2). The experts included academics in two academic conferences and 59 QI managers from the New Zealand health-care system. In-depth interviews were conducted with QI managers to ascertain their views on the QIMM and its applicability in their respective health organisations (HOs).

Findings

The QIMM consists of four dimensions of organisational maturity, namely, strategic, process, supply chain and philosophical maturity. These dimensions progress through six stages, namely, identification, ad-hoc, formal, process-driven, optimised enterprise and finally a way of life. The application of the QIMM by the QI managers revealed that the scope of QI and the breadth of the principles adopted by the QI managers and their HOs in New Zealand is limited.

Practical implications

The importance of QI in health systems cannot be overstated. The proposed QIMM can help HOs diagnose their current state and provide a guide to action achieving a desirable state of quality improvement maturity. This QIMM avoids reliance on any single QI methodology. HOs – using the QIMM – should retain full control over the process of selecting any QI methodology or may even cherry-pick principles to suit their needs as long as they understand and appreciate the true nature and scope of quality overstated. The proposed QIMM can help HOs diagnose their current state and provide a guide to action achieving a desirable state of quality improvement maturity. This QIMM avoids reliance on any single QI methodology. HOs – using the QIMM – should retain full control over the process of selecting any QI methodology or may even cherry-pick principles to suit their needs as long as they understand and appreciate the true nature and scope of quality.

Originality/value

This paper contributes new knowledge by presenting a maturity model with an integrated set of quality principles for HOs and their extended supply networks.

Details

International Journal of Lean Six Sigma, vol. 15 no. 3
Type: Research Article
ISSN: 2040-4166

Keywords

Article
Publication date: 21 November 2023

Pham Duc Tai, Krit Jinawat and Jirachai Buddhakulsomsiri

Distribution network design involves a set of strategic decisions in supply chains because of their long-term impacts on the total logistics cost and environment. To incorporate a…

Abstract

Purpose

Distribution network design involves a set of strategic decisions in supply chains because of their long-term impacts on the total logistics cost and environment. To incorporate a trade-off between financial and environmental aspects of these decisions, this paper aims to determine an optimal location, among candidate locations, of a new logistics center, its capacity, as well as optimal network flows for an existing distribution network, while concurrently minimizing the total logistics cost and gas emission. In addition, uncertainty in transportation and warehousing costs are considered.

Design/methodology/approach

The problem is formulated as a fuzzy multiobjective mathematical model. The effectiveness of this model is demonstrated using an industrial case study. The problem instance is a four-echelon distribution network with 22 products and a planning horizon of 20 periods. The model is solved by using the min–max and augmented ε-constraint methods with CPLEX as the solver. In addition to illustrating model’s applicability, the effect of choosing a new warehouse in the model is investigated through a scenario analysis.

Findings

For the applicability of the model, the results indicate that the augmented ε-constraint approach provides a set of Pareto solutions, which represents the ideal trade-off between the total logistics cost and gas emission. Through a case study problem instance, the augmented ε-constraint approach is recommended for similar network design problems. From a scenario analysis, when the operational cost of the new warehouse is within a specific fraction of the warehousing cost of third-party warehouses, the solution with the new warehouse outperforms that without the new warehouse with respective to financial and environmental objectives.

Originality/value

The proposed model is an effective decision support tool for management, who would like to assess the impact of network planning decisions on the performance of their supply chains with respect to both financial and environmental aspects under uncertainty.

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