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The purpose of this paper is to investigate the impact of lean production practices on performance measures in machine tool industry and determines the lean criteria that can have significant positive impact on performance.

The research paper presents a blend of theoretical framework and practical applications. Extant literature was reviewed and to achieve the research objectives, an exploratory survey was carried out in machine tool supply chains located in the national capital region of India. Reliability test, factor analysis and stepwise multiple regression analysis bring out several lean criteria that can affect key performance measures.

It was found that two lean criteria, namely, strategic partnership with suppliers and cross-functional cross-organizational design and development teams significantly influenced most of the key performance measures. Some lean criteria were found to negatively affect the overall competitive potential of machine tool firms.

The findings can encourage the management of non-adopter firms to adopt lean thinking and to select the lean production criteria that can be implemented to have significant positive impact on key performance indicators in machine tool value chains. This study is perhaps among the first few that focus on machine tool industry in India. The paper provides useful insights to the lean production implementers, consultants and researchers.

Explores explanations for the continuance of agents or distributors and sales subsidiaries as international market entry and development modes and channels of distribution in the machine tool industry in the UK, and for entry mode evolution. Data were collected by in‐depth interviews with machine tool importers, interpreted qualitatively and related to conventional theoretical approaches. Results reveal, on the one hand, the progression of agents and distributors through acquisition to create foreign‐owned sales subsidiaries, and, on the other, regression back to the agency form. They also reveal a long‐standing persistence of a single channel of distribution.

THE fourth of the Aircraft Production Conferences organized by the Southern Section of the Institution of Production Engineers was again held at Southampton University. The theme this year was ‘Speeding Aircraft Production’. At this conference the inaugural Lord Sempill Paper was given by Sir Roy Fedden. This, and the other papers are summarized below, together with a fairly full report of the discussion on each paper.

This paper aims to investigate how the implementation of the inter-cooperation principle among Spanish machine-tool cooperatives helps them to coopete–collaborate with competitors, in their innovation and internationalization processes and achieve collaborative advantages.

The paper uses a multi-case approach based on interviews with 15 CEOs and research and development (R&D) managers, representing 14 Spanish machine tool firms and institutions. Eight of these organizations are worker-cooperatives.

Worker-cooperatives achieve advantages on innovation and internationalization via inter-cooperation (shared R&D units, joint sales offices, joint after-sale services, knowledge exchange and relocation of key R&D technicians and managers). Several mutual bonds and ties among cooperatives help to overcome the risk of opportunistic behaviour and knowledge leakage associated to coopetition. The obtained results give some clues explaining to what extent and under which conditions coopetitive strategies of cooperatives are transferable to other types of ownership arrangements across sectors.

Firms seeking cooperation with competitors in their R&D and internationalization processes can learn from the coopetitive arrangements analyzed in the paper.

Findings can be valuable for sectoral associations and public bodies trying to promote coopetition and alliances between competitors as a means to benefit from collaborative advantages.

Focussing on an “ideal type” of co-operation–cooperative organizations – and having access to primary sources, the paper shows to what extent (and how) strong coopetitive structures and processes foster innovation and internationalization.

This paper aims to analyze how integration into global value chains has impacted the evolution of the Basque machine tool cluster from the 1990s to the present day.

The study was carried out in three steps. First, a comparative analysis was made of the renewal process of the 1990s and the current situation. Next, a quantitative analysis was undertaken to test whether the cluster has entered a new maturity period, and finally, qualitative data was gathered about the past and present challenges facing the companies in the cluster.

The empirical evidence of the present study shows that integration into global value chains has led to a hierarchization of the strategic trajectories and performances of the companies in the cluster. Additionally, evidence of a sustained period of new maturity and decline has been observed. The period of maturity and foreseeable challenges of the coming years were mentioned repeatedly during the interviews.

Although the participants in the interviews were relevant individuals with a broad view of the cluster’s situation, their limited number and the lack of representation of companies that closed down during the renewal process, despite the efforts made by the authors, could be considered a limitation.

This paper sheds some light on the renewal/transformation period facing the cluster. Several of the main challenges and two extreme, hypothetical scenarios are discussed. The companies in the cluster will have to establish a position somewhere between those two scenarios.

This paper presents two possible cluster transformation scenarios. The authors offer suggestions as to how to go about transforming the cluster with a view to secure a better position for dealing with future challenges.

Using quantitative and qualitative data, the paper reflects on the hierarchization and decline of the Basque machine tool cluster and provides new insight into the transformation and renewal needs of the cluster in a globally competitive environment.

It is difficult for anyone to implement all the lean tools simultaneously. One of the core issues is identifying critical criteria for the successful implementation of lean manufacturing (LM) and evaluating them. The purpose of this paper is to analyze the causal relationships of LM criteria in a machine tool manufacturing firm located in national capital region of India using the Decision-Making Trial and Evaluation Laboratory (DEMATEL) method.

The research paper presents a blend of theoretical framework and practical applications. Based on literature review, 17 LM criteria were extracted that were validated by experts. A questionnaire was developed that was answered by experts serving in the XYZ machine tool manufacturing firm. Then, the DEMATEL method was applied to analyze the importance of criteria and the casual relations among the criteria were developed.

Using DEMATEL, the lean criteria were divided into cause group and effect group. In this study, information technology, computer-integrated manufacturing, enterprise resource planning, training, fixed position layout, smart processes and automation and concurrent engineering were classified in the cause group. Just in time, value stream mapping, 5-S, single minute exchange of die, visual control, job scheduling, standardized work, cellular manufacturing, poka-yoke, and total quality management were categorized in the effect group. The DEMATEL framework indicates that “training” is the most influencing factor for the lean implementation process in machine tool sector.

To know the key lean criteria and relationship among them can help many organizations to develop lean competencies. If the authors want to obtain high performance in terms of the effect group factors, it would be necessary to control and pay a great deal of attention to the cause group factors beforehand. This study is perhaps among the first few with focus on segmenting the set of lean criteria into some meaningful portions in order to effectively facilitate its implementation. The paper provides useful insights to the lean production implementers, consultants, and researchers.

This paper aims to analyze the impact of three types of embedded ties, namely, specialized complementary resources, idiosyncratic investments and knowledge sharing, on the innovation capacity of firms. It also examines the particularities of the machine-tool industry.

The evaluation of the embedded buyer-supplier ties is based on the potential sources of relational rents proposed by Dyer and Singh (1998). It also draws on Uzzi and Lancaster (2003) and Noordhoff et al. (2011), among others, to discuss the positive and negative aspects of embedded ties. Using data from a survey of 202 European machine-tool firms acting as buyers and sellers, the study proposes and evaluates a structural equation model.

Only knowledge-sharing routines exert a significant positive effect on product innovation performance. Neither an increase in idiosyncratic investments nor in complementary resources and capabilities enhances innovation performance. Moreover, knowledge-sharing routines mediate in the effect of idiosyncratic investments on innovation performance.

The machine-tool industry has unique characteristics that make generalization difficult. There is also considerable difficulty associated with testing the interrelations among these embedded ties in greater depth in the long run. It is plausible to consider that these interrelations operate within a gradual process.

This research contributes to a better understanding of the role of embedded ties on innovativeness. To the best of the authors’ knowledge, no previous international empirical research has been published analyzing the mediation effects among specialized complementary resources, idiosyncratic investments and knowledge sharing, and their effects on the innovation capacity of firms.

This article reports the findings of an investigation into pricing and financing practices of exporting firms. The research addressed the relationship between commitment to exporting and level of export achievement with the uses of various tactical options in the area of pricing and finance. Firms in the machine tools industry in two countries were studied so that country of origin effects could be examined. Results show that commitment and success are strongly associated while there is some variability in the use of pricing and financing practices by the country of origin of the exporting firms. Commitment is shown to have some influence on relationships between (1) country of origin and financing practices and (2) financing practices and success.

The paper looks first at the various types of classification and coding methods used in group technology. A discussion is provided on the pros and cons of classification and its relevance and significance to the establishment of cellular manufacturing. Secondly, the formation of production cells is examined. Some of the factors considered include the optimum cell size, the effect of numerically‐controlled machines, and quality assurance. The introduction of GT (group technology) cells imposes a marked change in the role of the foreman and working relationship of the operators. The social aspect of GT is discussed against the background of current motivational theories and results from surveys are presented.

Industrial policy as practiced by the Japanese is aimed at creating comparative advantage for its industry. This article emphasises Japan's integrated approach to industrial policy. Examples of the application of industrial policy to specific industries are presented. The importance of incorporating the effects of such industrial policies for an analysis of competition in international markets is highlighted. Then, some appropriate strategic countermeasures to such industrial targeting are discussed.