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1 – 10 of over 51000The current work sought to investigate the mediating effect of supply chain ambidexterity on the relationship between Industry 4.0 capabilities and operational performance of…
Abstract
Purpose
The current work sought to investigate the mediating effect of supply chain ambidexterity on the relationship between Industry 4.0 capabilities and operational performance of manufacturing firms in Jordan.
Design/methodology/approach
Data collection was carried out through a survey with 253 respondents from manufacturing firms in Jordan through the first quarter in 2023. The quantitative approach and structural equation modeling (SEM) were applied to analyze the collected data. Dynamic capabilities view (DCV) theory was the adopted theoretical lens for this work.
Findings
The results demonstrated that Industry 4.0 capabilities positively and significantly affect exploration, exploitation and operational performance. In addition, the results confirmed that exploration and exploitation positively and significantly affect operational performance. Further, it is also found that exploration and exploitation in the supply chain positively and significantly mediate the relationship between Industry 4.0 capabilities and operational performance.
Originality/value
This study focuses on this gap to deepen the understanding of operational performance in a recent manufacturing environment under various factors and perspectives (Industry 4.0 capabilities and supply chain ambidexterity).
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Bahrun Borahima, Noermijati Noermijati, Djumilah Hadiwidjojo and Ainur Rofiq
Regardless of its relevance for economic development, the influence of strategic orientation by innovation orientation, and strategic marketing by marketing capability on firm…
Abstract
Regardless of its relevance for economic development, the influence of strategic orientation by innovation orientation, and strategic marketing by marketing capability on firm performance, this interesting study focused on firms with strategic industries (defense and security) in Indonesia. It approached the gap in three ways. Initially, the examination was conducted on the role of innovation orientation, marketing capability, the interaction of innovation orientation and marketing capability on firm performance. The next step was considering the contribution of state-owned enterprise (SOE) and non-SOE. Finally, this relationship was studied in strategic industries of firms in Indonesia. The firm performance in this study, which we chose, was operational performance. The proposed conceptual model would be tested by distributing questionnaires to 41 firms in Indonesia. This study gave insight into the matters, which should be the companies’ focus, to improve their operations’ performance. By using PLS-based structural equation modeling (SEM) analysis, the results of the relationship between innovation orientation, marketing capability, and the interaction between innovation orientation and marketing capability on operational performance were identified. The findings could be clarified via the variations in the characteristics of enterprises (SOE and non-SOE). Moreover, there were clear variations in the findings, which were recognized among the firms’ relatively different characteristics. The main finding was a challenge to generalize the relationship from strategic orientation and strategic marketing to performance. The results of firm characteristics also had considerable managerial relevance. The authors recommend strategic industries (defense and security) in Indonesia in achieving operational performance excellence. Management’s importance is paying attention to the relationship between innovation orientation, marketing capability, and dynamic capability in running a company organization.
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Hongyi Mao, Yeming Gong and Ryad Titah
The system of information technology (IT)-oriented resources and processes that organizations need to develop to achieve operational agility remains unclear. The study research…
Abstract
Purpose
The system of information technology (IT)-oriented resources and processes that organizations need to develop to achieve operational agility remains unclear. The study research seeks to extend existing competency literature by incorporating the unique contextual nuances of the relationship between IT capabilities and operational agility.
Design/methodology/approach
Using a multi-method approach, this paper presents a theoretical framework of IT-enabled operations strategy that conceptualizes the role of IT capability in leveraging resources and processes for operational agility. Drawing on operations and information systems research, the authors advance that IT enables operational agility through two dimensions. From the perspective of a resource-based operations strategy, the authors explore the role of IT in resource-leveraging activities by investigating the nonlinear relationship between IT infrastructure and IT reconfiguration. From the perspective of a process-oriented operations strategy, the authors explore the role of IT in process-enhancing activities by investigating the nonlinear relationship between IT coordination and IT integration.
Findings
The study results, based on a sample of 113 organizations in Europe, Asia and North America, show that the interaction between IT infrastructure and IT reconfiguration positively influences operational agility, hence showing complementarity between the two constructs, while the interaction between IT coordination and IT integration negatively affects operational agility, hence indicating substitutability between the two constructs. A series of 62 interviews and a case study of Carrefour were further conducted to validate the field survey's results and to provide a finer grained explanation of the research model and quantitative findings.
Originality/value
The study findings offer an alternative explanation of the inconsistent relationship between IT capability and operational agility.
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Niromi Seram, Julian Nanayakkara and Gamini Lanarolle
The suppliers are recognized as important external sources who can significantly contribute by working together with the buyer during the innovation process. Operational…
Abstract
Purpose
The suppliers are recognized as important external sources who can significantly contribute by working together with the buyer during the innovation process. Operational capabilities of suppliers can be one of the considerable factors when selecting them to participate in the activities at the front-end of innovation. However, proper understanding of the influence of operational capabilities of suppliers on front-end decision-making in apparel product innovation is still very limited particularly in the context of the Sri Lankan apparel industry. Therefore, this study aims to explore the influence of operational capabilities of suppliers on the front-end decision making in apparel product innovation in Sri Lanka.
Design/methodology/approach
Both semi-structured interviews and a questionnaire survey were used as data collection techniques. Six senior managers for the interviews and 60 participants for the questionnaire were randomly selected. All those who participated in interviews and the questionnaire respondents have been involved in the front-end of innovation in different apparel manufacturing organizations in Sri Lanka.
Findings
The results indicated that the operational capabilities of suppliers had a direct positive influence on front-end decision-making, and the suppliers’ production flexibility was found to be the most influential. Further, the results highlighted that 27.3% of the front-end decisions associated with apparel product innovation in Sri Lanka were influenced by the factors governing operational capabilities of suppliers.
Originality/value
The findings of the research will be beneficial for both academia and industry. The findings will be useful to extend the current understanding and make a noteworthy contribution to this topic and to provide useful and practical guidance to material suppliers and supporting industries who work with Sri Lankan apparel manufacturing.
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Sarah Jinhui Wu, Steven A. Melnyk and Morgan Swink
Operational practices and operational capabilities are critical yet distinct elements in operations strategy. The purpose of this paper is to examine their conceptual differences…
Abstract
Purpose
Operational practices and operational capabilities are critical yet distinct elements in operations strategy. The purpose of this paper is to examine their conceptual differences and explore how they are developed in a portfolio, considering the potential for practices and capabilities to be either compensatory or additive in nature.
Design/methodology/approach
The compensatory model argues that the lack of investments in certain practices or capabilities can be offset by higher level of investments in other practices or capabilities. In contrast, the additive model argues that the firm must invest in certain practices or capabilities and that trade‐offs are impossible. The authors examine evidence for these two competing models using an approach borrowed from studies of multi‐attribute consumer preference models and statistical comparisons of non‐nested models.
Findings
Data for the study were collected from operations managers who were members of a large professional organization. The findings indicate that the effects of operational practices are additive for some operational outcomes and compensatory for others. However, the combinatorial nature of operational capabilities is purely compensatory.
Practical implications
The results imply that adequate investment in a wide range of operational practices is necessary to enhance operations performance. However, operations units appear to have more flexibility in choosing to develop a distinctive operational capability set.
Originality/value
The study clarifies the different orientation of operational practices and operational capabilities as they contribute to operations strategy. The findings provide guidelines regarding the combinatorial natures of operational practices and operational capabilities. These guidelines have critical strategic implications for resource allocation schemes and how these schemes affect operational performance.
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Hongjia Ma, Chunting Lang, Qing Sun and Deeksha Singh
The purpose of this study is to review the literature of enterprise capability, which comprises the three dimensions of operational, dynamic and improvisational capabilities, and…
Abstract
Purpose
The purpose of this study is to review the literature of enterprise capability, which comprises the three dimensions of operational, dynamic and improvisational capabilities, and analyze their differences. Through this review, the authors aim to enrich the enterprise capability theory and provide some directions for entrepreneurial practice in the face of volatility, uncertainty, complexity and ambiguity (VUCA).
Design/methodology/approach
The study is based on a systematic review of the literature on enterprise capability as it relates to entrepreneurial firms, following the content analysis approach as described in Gaur and Kumar (2018).
Findings
The authors’ conceptual model compares the capability levels of startups and mature enterprises and presents a model for the dynamic evolution of the capability levels of enterprises. In doing so, this study enriches the enterprise capability theory and lays the theoretical foundation for the follow-up empirical research. The authors also provide guidance for entrepreneurial practice in the face of VUCA.
Originality/value
In recent years, scholars have begun to explore the issue of enterprise capability in the field of entrepreneurship. However, because of different research perspectives, one lacks clarity on the concept and dimensions of enterprise capability. The capability theory is relatively weak in guiding the practice of enterprises; enterprises lack effective response strategies in a changing environment, and the failure rate of startups is high. This study aims to develop a deeper understanding of enterprise capability.
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Rajesh Rajaguru and Margaret J Matanda
This study aims to investigate how compatibility between supply chain partners’ technological systems, as well as cultural and operational values, enhance supply chain process…
Abstract
Purpose
This study aims to investigate how compatibility between supply chain partners’ technological systems, as well as cultural and operational values, enhance supply chain process integration. Additionally, the paper examines whether supply chain capabilities mediate the relationship between supply chain process integration and organizational performance. The contradictory findings on the relationship between supply chain process integration and organizational performance in prior research point to the need for investigating the possibility of supply chain capabilities having a mediating effect on the link between the two factors.
Design/methodology/approach
The study used survey data from 302 managers and executives responsible for supply chain functions in food and hardware retailing businesses in Australia. Structural equation modeling (SEM) was used to test the proposed hypotheses, and then Zhao et al.’s (2010) procedure was used to test for mediation effects.
Findings
The results indicate that technical, operational and cultural compatibility facilitates supply chain process integration. In support of dynamic capabilities theory, the study reveals the importance of integrating resources among supply chain partners to achieve supply chain capabilities, operational and competitive performance. Additionally, the current study found supply chain capabilities to play a mediating role on the relationships between supply chain process integration and organizational performance.
Originality/value
The paper contributes to supply chain management literature by identifying technical, operational and cultural compatibility as antecedents to supply chain process integration. By revealing the mediating role of supply chain capabilities, the paper highlights how supply chain process integration enhance operational and competitive performance.
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Marcia Regina Santiago Scarpin and Luiz Artur Ledur Brito
The purpose of this paper is to identify the operational capabilities in an emerging country, and to analyze the trade-off effect between the quality capability and the cost…
Abstract
Purpose
The purpose of this paper is to identify the operational capabilities in an emerging country, and to analyze the trade-off effect between the quality capability and the cost capability.
Design/methodology/approach
The empirical data were drawn from 160 firms in Brazil. Scales were validated using the Q-sort method and confirmatory factor analysis. Different techniques were adopted to reduce common method variance. Data were analyzed using multiple line regression.
Findings
The results showed that quality has a positive relationship with delivery, flexibility, innovation and sustainability capabilities. However, it was not possible to observe a positive relationship between quality and cost that confirmed the presence of a trade-off between these two capabilities.
Practical implications
An important practical contribution of this study is that it brings a new perspective to the relationship between quality and cost. Although quality is an important capability for the firm, emerging country managers need to understand that its implementation will take time and money; quality does not indicate an immediate reduction in cost.
Originality/value
This study helps expand research into operational capabilities in lesser-developed countries, such as Brazil. Most of the research on operational capabilities is conducted in industrialized countries. The paper also discusses the trade-off between the quality capability and cost capability. The results show that quality does not always lead to a reduction in cost.
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Antonio Carlos Domenek, Roberto Giro Moori and Valdir Antonio Vitorino Filho
Collaboration and operational capabilities are two strengths for managing supply chains to achieve operational performance. In this context, this study aims to analyze the…
Abstract
Purpose
Collaboration and operational capabilities are two strengths for managing supply chains to achieve operational performance. In this context, this study aims to analyze the mediating effect of operational capabilities on the relationship between collaborative supply chain management and operational performance.
Design/methodology/approach
The study design consisted of a theoretical framework to estimate the mediation paths by latent variable structural modeling methods. A survey of 138 respondents from Brazilian capital goods companies was conducted.
Findings
The study revealed that operational capabilities partially mediate the relationship between collaborative supply chain management and operational performance. The findings provide important guidance for managers to strengthen the relationship with suppliers to continuously improve operational capability.
Research limitations/implications
As the sample size was made up of 138 respondents, it was impossible to revalidate the theoretical–empirical model. New data need to be collected to re-evaluate the structural model and expand them to other economic segments.
Practical implications
By examining the theoretical insights and empirical findings, the study expanded knowledge about collaborative management and the understanding of the importance of operational capabilities in the relationship between collaborative management and operational performance for management practices.
Originality/value
The study developed a theoretical–empirical measurement model, reliable and statistically validated, to test the mediating effect of operational capabilities in the relationship between collaborative management and operational performance.
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– The purpose of this paper is to propose a new way to distinguish a firm’s dynamic capabilities from operational capabilities.
Abstract
Purpose
The purpose of this paper is to propose a new way to distinguish a firm’s dynamic capabilities from operational capabilities.
Design/methodology/approach
Conceptual paper/literature review.
Findings
Current literature on dynamic capabilities posits that dynamic capabilities are those firm capabilities that can induce change in other capabilities, while operational capabilities are static. Distinguishing between these capabilities in this manner is not helpful because changes occur continuously in all capabilities to at least some extent. In addition, empirical studies show that even task-level operational capabilities can change on their own and can induce change in other capabilities. In contrast to focussing on the presence or lack of change to determine if a capability is dynamic or operational, this paper distinguishes between them by determining a priori the expected nature of the outcome. By focussing on the outcomes of change rather than the changes themselves, this paper proposes that capabilities should be considered operational if they produce outcomes that can be predicted using probability distribution while those capabilities that produce outcomes that cannot be predicted using probability distribution should be considered dynamic.
Research limitations/implications
Future research on dynamic capabilities should not only investigate whether or not change is occurring, but the outcome of change to understand whether a change is precipitated by dynamic or operational capabilities.
Originality/value
Existing dynamic capabilities literature is unclear about how to distinguish between dynamic capabilities from operational capabilities. Previous research attempts to distinguish these capabilities by arguing dynamic capabilities are those firm capabilities that can induce change in other capabilities, while operational capabilities are static and do not induce change. This is not particularly helpful. A clear distinction between dynamic and operational capabilities could facilitate further advancement of the dynamic capability literature; this study makes a rudimentary effort to distinguish between them.
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