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1 – 2 of 2Oliver 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.
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B. Megha and T.N. Srikantha Dath
Human Resource Practices (HRPs) have undergone a revolutionary change, with their practices being more strategic for facilitating the change process. Extant literature studies the…
Abstract
Purpose
Human Resource Practices (HRPs) have undergone a revolutionary change, with their practices being more strategic for facilitating the change process. Extant literature studies the impact of Lean Thinking Practices (LTPs) on Organizational Performance (OP). However, the role of HRP as a strategic partner in the inculcation of LTP appears to have been explored sparingly. Hence, this paper aims to identify the specific HRPs that enhance the impact of Lean Thinking on OP.
Design/methodology/approach
A cross-sectional survey method was adopted. A total of 528 responses from IT organizations across various levels and processes were collected. The proposed conceptual framework was tested and validated SPSS-Process Macro.
Findings
Findings revealed that the presence of HRPs as moderators is significantly impacting the relationship between LTP and OP. LTP when moderated by HRPs significantly impacts employee well-being when compared to other performance variables.
Originality/value
This study is a maiden attempt to study the role of HRP in the inculcation of LTP in IT organizations. Earlier studies, which have mainly concentrated on the need for Human Resource (people) involvement, have spoken and researched less about the specific HRPs in the inculcation of LTP. An empirically validated specific HRP for inculcating LTP in IT organizations is a significant contribution.
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