Search results

This study aims to extend ambidexterity theory from the perspective of organisational learning and examine how process ambidexterity, which comprises operational flexibility and operational routine, responds to environmental uncertainty and ultimately reduces organisational risks.

This study tests the hypotheses by analysing 464 annual reports of 115 listed companies in the Chinese agricultural and food industry using content and secondary data analyses. Four case studies are also provided.

The results show that (1) environmental uncertainty has a positive effect on either operational flexibility or operational routine; (2) both operational flexibility and operational routine have negative effects on organisational risks, supporting the view that process ambidexterity mediates the relationship between environmental uncertainty and organisational risks; and (3) organisational slack plays the role of “double-edged sword” by negatively moderating the effect of environmental uncertainty on operational flexibility and positively moderating the effect of environmental uncertainty on operational routine.

In an uncertain environment, companies are exposed to greater risk. This study contributes to risk management in three ways: first, it extends ambidexterity theory to process management and proposes how process ambidexterity balances operational flexibility and routines. Second, it distinguishes between the different conditions under which flexibility or routines are superior. Third, it explains the mechanisms related to how organisations can resolve environmental uncertainty into risk through process ambidexterity.

Sustainable operations management is characterized by environmental, social and operational goals. The implementation of routines to protect and direct the effective use of human capital is proposed to potentially improve all three dimensions. However, functional managers with overlapping responsibilities at the plant-level might implement human capital routines based on their individual functional schemas. The purpose of this paper is to investigate whether functional managers have conflicting perceptions of human capital routines, due to narrow perceptions benefiting their own functional domain, and thus generate trade-offs.

A combination of matched survey and archival data from 198 manufacturing plants is used to explore the degree to which functional managers have conflicting perceptions of human capital routines and the effects of these perceptions on sustainability outcomes.

The results indicate that on average functional managers have conflicting perceptions that generate trade-offs between sustainability dimensions. However, when functional managers had a shared perception better outcomes on all sustainability dimensions are shown. Thus, human capital routines can be a powerful tool for sustainability only if senior management can promote a shared schema across functional managers.

Differently than most previous studies assuming shared sustainability goals within an organization, this study considers a multiplicity of functional actors with potentially varying perceptions about sustainability goals and links these to organizational routine implementation and outcomes. Additionally, the dynamic and subjective nature of organizational routines, such as human capital routines, is proposed to explain contradictory impacts in a multi-objective setting such as sustainable operations management.

This paper aims to examine how the efficacy of organizational routines varies and the mechanism through which organizational routines improve firm performance.

A theoretical model is proposed and tested using data from 53 interviews with financial services experts and 291 survey responses from financial advisors.

Operational and adaptive routines work through absorptive capacity to positively contribute to firm performance. The positive effects of adaptive routines are magnified under market governance.

The examination of organizational routines is focused on routines at the firm level. Therefore, higher corporate-level routines were not measured. Response rate for the survey is a possible concern, so future research will benefit from increasing the response rate from the focal population.

This study benefits firms facing the dual role of customization and discipline in working with clients toward service delivery. The findings suggest that firms should develop both operational and adaptive routines, particularly when operating under market governance.

This study identified two categories of routines (operational and adaptive) and the circumstances in which the causal link between routines and performance varies. This study examined the potential moderating influence of a governance mode (market vs hierarchy). Absorptive capacity was identified as a mediator between the use of routines and firm performance.

Though resource based view (RBV) has been applied extensively in supply chain studies to examine how firms utilize logistics resources to attain superior performance, relatively little attention has been directed to exploring the effects of operational routines on logistics and supply chain (L&SC) competencies. The purpose of this paper is to examine the causal linkages between operational routines and L&SC competencies of Chinese logistics service providers (LSPs).

A conceptual model on the relationships between operational routines and L&SC competencies was developed based on RBV. In total, 76 valid responses from a survey of Chinese LSPs provided the empirical data for the testing of the formulated hypotheses. Confirmatory factor analysis was used to develop the constructs for the model and hierarchical multiple regression analysis was performed to test the hypothesized relationships.

Not all operational routines were drivers of L&SC competencies in the Chinese logistics market. Processes for increasing responsiveness are most important in contributing to building positioning, distribution support and agility competencies. Processes for increasing flexibility are only effective in developing positioning competency, while performance benchmarking has little contribution to competency building in the Chinese market. ICT support strengthens the relationship between performance benchmarking and distribution support, but weakens that between processes for increasing flexibility and distribution support as well as that between processes for increasing responsiveness and agility.

This study raises more questions than it attempts to answer, opening up a number of horizons for further research into the logistics market of China. Several follow‐up studies have been suggested, including a multiple case study on how Chinese LSPs contrive their operational routines to respond to the exigencies of market situations.

Findings from this study have significant managerial implications in resource investment and competency building to generate competitive advantage in the Chinese logistics market.

This research sheds new insights on the routine‐capability‐competency building chain in China's fragmentary logistics industry. It indicates that despite over three decades of economic reform, and ascension to the World Trade Organization, China remains a distinctively unique market environment with ingredients for operation success vastly different from those of the developed economies.

Pressured by various stakeholder groups to improve the sustainability performance of their emerging economy suppliers, multinational firms continue to expand their supplier monitoring. Leveraging the strategy literature on alliances and the buyer-supplier relationship management literature, the authors propose that a buyer firm's efforts to proactively develop cultural sensitivity and operations cognizance to understand the operational culture and routines of its suppliers can ameliorate some shortcomings of supplier monitoring, thereby improving the performance of the buyer firm.

Using primary survey data from a sample of US manufacturing firms, combined with secondary data of supplier monitoring and financial performance, this research examines the relationship between supplier monitoring, cultural sensitivity, operations cognizance, and buyer firm performance.

Supplier monitoring was associated with positive but diminishing returns for financial and sustainability performance for the buyer. Second, increasing cultural sensitivity and operations cognizance for suppliers in emerging economies were associated with improved buyer performance. Finally, the synergistic use of supplier monitoring and operations cognizance was associated with improved buyer firm financial performance.

While the buyer-supplier relationship literature has mainly treated organizational differences between dyadic supply chain partners as exogenous to the context in which their relationship evolves, the authors posit that buyer firms' efforts to understand such differences can affect the value of buyer-directed interactions, such as supplier monitoring. This research adds to the theoretical understanding of the process of developing relational mechanisms with emerging economy suppliers. In particular, efforts of buyer firms to better understand the operational culture and routines of their suppliers can complement monitoring and are associated with a positive impact on performance.

Project delivery organizations (PDO) have to develop competitive advantage against new entrants. This study aims to explore the knowledge conversion transactions proposed by Nonaka and Takeuchi (1995) in project phases through the interplay of dynamic and operational capabilities. This study is based on a case study for a PDO in the engineering industry.

This study proposes a model of dynamics between the constructs, and its illustration with a case study of a PDO. The research extends the socialization, externalization, combination and internalization (SECI) model of knowledge management (KM).

This study provides an overview of existing research related to the constructs like applicability of operational and dynamic capabilities, knowledge configuration and knowledge management processes to individual projects delivered by a PDO for its clients. Further, this study provides an overview of the knowledge configuration adopted by an organization and how it helps to build the competitive advantage of an organization.

This study proposes a model for applying the constructs to each of the phases of a project. It then illustrates the knowledge value chain in a PDO in the field of engineering projects with detailed insights into the steps of sensing, seizing and sharing knowledge across the project life cycle.

Project-based firms can use the learnings and create their own SECI model linking the conceptual model of KM and PDO and KM value chain.

In social projects implementation, this conceptual model and process will be helpful in building efficiency and effectiveness.

This case study presents the knowledge value chain in a PDO in the field of engineering projects with detailed insights into the steps of sensing, seizing and sharing knowledge across the project life cycle.

Purpose – This chapter presents a close examination of how manufacturing managers respond to environmental pressures by formulating and implementing operational strategy.

Methodology – The analysis is based on interviews and observations in 31 manufacturing firms in the US Midwest.

Findings – The study reveals that competitive market pressure is only so effective at penetrating the institutional layers of inter- and intra-firm relations. Even in the highly competitive manufacturing sector, operational strategy is consistently implemented in suboptimal ways. Relatively inefficient routines are commonly institutionalized and inefficient arrangements appear to be able to persist for an indefinite period of time. To the extent that firms with variable capabilities and internal socio-technical systems must process, interpret, and react to complex external pressures and often-ambiguous signals, the sociology of work provides essential insights for the sociology of markets.

Originality – While the findings are subject to the standard caveats regarding nonrandom qualitative samples, the rich data produced and the in-depth analysis of real-world organizational pressures and managerial decision-making provide distinctive insights into how managers must balance external market pressures with internal labor process problems. Individual motivation appears to be at least as important in true organizational innovation as market discipline. While adaptation and learning certainly occur in organizations (and selection also operates through the death of extreme laggards) there exists sufficient institutional space within markets for a range of variation in organizational performance. The findings suggest that the analysis of internal organizational dynamics provides an essential part of a realistic theory of markets.

The purpose of this paper is to apply a capability perspective to investigate the shift from relationship lending to transaction lending in a bank’s corporate segment. The authors investigate the impact of three operational capabilities: assisting corporate clients in funding and business operations, management of customer relationships and internal cooperation on performance in relationship and transaction lending.

The primarily empirical material comprises longitudinal survey data, collected on three occasions during the period 1998 throughout 2001 from one of Sweden’s largest banks. Data are analyzed using factor analysis and OLS regression.

Results show that the effects of the three capabilities are contingent on the type of lending strategy: In relationship lending, assisting corporate clients has no significant direct effect on performance; however, it has an indirect effect on performance via the management of customer relationships. In transaction lending, assisting corporate clients has a direct effect on performance, and this effect becomes stronger as the transaction strategy is further implemented. The results also show that the direct effect of the management of customer relationships and cooperation on performance is significant in both strategies; however, the relation is stronger in relationship lending compared with transaction lending.

The findings indicate that the choice of lending strategy is more complex than a choice between a strict relationship strategy and a strict transaction strategy and that a strategy that leads to competitive advantage includes elements of both strategies.

This chapter combines insights from organizational theory and the entrepreneurship literature to inform a process-based conception of organizational founding. In contrast to previous discrete-event approaches, the conception argues that founding be viewed as a series of potential entrepreneurial activities – including initiation, resource mobilization, legal establishment, social organization, and operational startup. Drawing on an original data set of 591 entrepreneurs, the study examines the effect of structural, strategic, and environmental contingencies on the relative rates with which different founding activities are pursued. Results demonstrate that social context has a fairly pervasive impact on the occurrence and sequencing of founding processes, with one possible exception being the timing of legal establishment.

The purpose of this paper is to provide a theoretical account of how firms make choices between dynamic capability-based and ad hoc problem-solving approaches toward strategic change.

A model has been developed to answer the questions of how and under what conditions firms develop appropriate approaches to handle strategic change.

Drawing upon structural inertia theory (SIT) and the resource-based view (RBV), the model predicts that firms, regardless of their age and size, are more likely to adopt an ad hoc problem-solving approach to handle change in both highly dynamic and low-dynamic environments. However, in moderately dynamic environments, a dynamic capability-based approach may be more appropriate, depending on which theoretical logic (SIT or RBV) the decision is made.

The paper builds on the useful distinction made by Winter (2003) in terms of the ways to handle organizational change and extends the recent research on temporary vs sustainable competitive advantages to investigate how firms tackle strategic change within the contexts of both environmental dynamism and organizational attributes.