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1 – 10 of 85Abstract
Purpose
This study investigates the relationships among digital transformation, technological innovation, industry–university–research collaborations and labor income share in manufacturing firms.
Design/methodology/approach
The relationships are tested using an empirical method, constructing regression models, by collecting 1,240 manufacturing firms and 9,029 items listed on the A-share market in China from 2013 to 2020.
Findings
The results indicate that digital transformation has a positive effect on manufacturing companies’ labor income share. Technological innovation can mediate the effect of digital transformation on labor income share. Industry–university–research cooperation can positively moderate the promotion effect of digital transformation on labor income share but cannot moderate the mediating effect of technological innovation. Heterogeneity analysis also found that firms without service-based transformation and nonstate-owned firms are better able to increase their labor income share through digital transformation.
Originality/value
This study provides a new path to increase the labor income share of enterprises to achieve common prosperity, which is important for manufacturing enterprises to better transform and upgrade to achieve high-quality development.
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Imoh Antai and Roland Hellberg
Management and risk techniques within industries have been studied from various disciplines in nondefense-affiliated industries. Given the assumption that these techniques…
Abstract
Purpose
Management and risk techniques within industries have been studied from various disciplines in nondefense-affiliated industries. Given the assumption that these techniques, strategies and mitigations used in one industry apply to other similar industries, this paper examines the defense industry for risk assessment. We characterize interactions for onward application to risk identification in the defense industry.
Design/methodology/approach
This research employs a systems theory approach to the characterization of industry interactions, using three dimensions including environment, boundaries and relationships. It develops a framework for identifying relationship types within system-of-systems (SoS) environments by analyzing the features of interactions that occur in such environments.
Findings
The study’s findings show that different systems environments within the defense industry SoS exhibit different interaction characteristics and hence display different relationship patterns, which can indicate potential vulnerabilities.
Research limitations/implications
By employing interaction as a means for evaluating potential risks, this research emphasizes the role played by relationship factors in reducing perceived risks and simultaneously increasing trust.
Originality/value
This paper intends to develop an initial snapshot of the relationship status of the Swedish defense industry in light of the global consolidation in this industry, which is a relevant contextual contribution.
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Azemeraw Tadesse Mengistu and Roberto Panizzolo
This paper aims to identify and empirically analyze useful and applicable metrics for measuring and managing the sustainability performance of small and medium-sized enterprises…
Abstract
Purpose
This paper aims to identify and empirically analyze useful and applicable metrics for measuring and managing the sustainability performance of small and medium-sized enterprises (SMEs).
Design/methodology/approach
To achieve the objective of the paper, potential metrics were adopted from previous research related to industrial sustainability and an empirical analysis was carried to assess the applicability of the metrics by collecting empirical data from Italian footwear SMEs using a structured questionnaire. The SMEs were selected using a convenience sampling method.
Findings
The results of the within-case analysis and the cross-case analysis indicate that the majority of the metrics were found to be useful and applicable to each of the SMEs and across the SMEs, respectively. These metrics emphasized measuring industrial sustainability performance related to financial benefits, costs and market competitiveness for the economic sustainability dimension; resources for the environmental sustainability dimension; and customers, employees and the community for the social sustainability dimension.
Research limitations/implications
Apart from the within-case analysis and cross-case analysis, it was not possible to conduct statistical analysis since a small number of SMEs were accessible to collect empirical data.
Originality/value
The findings of the paper have considerable academic, managerial and policy implications and will provide a theoretical basis for future research on measuring and managing industrial sustainability performance. By providing a set of empirically supported metrics based on the triple bottom line approach (i.e. economic, environmental and social metrics), this paper contributes to the existing knowledge in the field of industrial sustainability performance measurement.
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Michael Rachinger and Julian M. Müller
Business Model Innovation is increasingly created by an ecosystem of related companies. This paper aims to investigate the transition of a manufacturing ecosystem toward electric…
Abstract
Purpose
Business Model Innovation is increasingly created by an ecosystem of related companies. This paper aims to investigate the transition of a manufacturing ecosystem toward electric vehicles from a business model perspective.
Design/methodology/approach
The authors investigate an automotive manufacturing ecosystem that is in transition toward electric and electrified vehicles, conducting semi-structured interviews with 46 informants from 27 ecosystem members.
Findings
The results reveal that the actions of several ecosystem members are driven by regulations relating to emissions. Novel requirements regarding components and complementary offers necessitate the entry of actors from other industries and the formation of new ecosystem members. While the newly emerged ecosystem has roots in an established ecosystem, it relies on new value offers. Further, the findings highlight the importance of ecosystem governance, while the necessary degree of change in the members' business models depends on their roles and positions in the ecosystem. Therefore, upstream suppliers of components must perform business model adaptation, whereas downstream providers must perform more complex business model innovation.
Originality/value
The paper is among the first to investigate an entire manufacturing ecosystem and analyze its transition toward electric vehicles and the implications for business model innovation.
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Emilia Kääriä and Ahm Shamsuzzoha
This study is focused to support an ongoing development project of the case company's current state and the challenges of the order-to-cash (O2C) process. The O2C process is the…
Abstract
Purpose
This study is focused to support an ongoing development project of the case company's current state and the challenges of the order-to-cash (O2C) process. The O2C process is the most visible process to the customer, and therefore, its punctual and fluent order management is vital. It is observed that the high degree of manual work in the O2C process causes mistakes, delays and rework in the process. The purpose of this article is therefore to analyze the case company's current state of the O2C process as well as to identify the areas of development in this process by deploying the means of Lean Six Sigma tools such as value stream mapping (VSM).
Design/methodology/approach
The study was conducted as a mix of quantitative and qualitative analysis. Based on both the quantitative and qualitative data, a workshop on VSM was organized to analyze the current state of the O2C process of a case company, engaged in the energy and environment sector in Finland.
Findings
The results found that excessive manual work was highly connected to inadequate or incorrect data in pricing and invoicing activities, which resulted in canceled invoices. Canceled invoices are visible to the customer and have a negative impact on the customer experience. This study found that by improving the performance of the O2C process activities and improving communication among the internal and external stakeholders, the whole O2C process can perform more effectively and provide better customer value.
Originality/value
The O2C process is the most visible process to the customer and therefore its punctual and fluent order management is vital. To ensure that the O2C process is operating as desired, suitable process performance metrics need to be aligned and followed. The results gathered from the case company's data, questionnaire interviews, and the VSM workshop are all highlighted in this study. The main practical and managerial implications were to understand the real-time O2C process performance, which is necessary to ensure strong performance and enhance continuous improvement of the O2C process that leads to operational excellence and commercial competitiveness of the studied case company.
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Anna Trubetskaya, Alan Ryan, Daryl John Powell and Connor Moore
Output from the Irish Dairy Industry has grown rapidly since the abolition of quotas in 2015, with processors investing heavily in capacity expansion to deal with the extra milk…
Abstract
Purpose
Output from the Irish Dairy Industry has grown rapidly since the abolition of quotas in 2015, with processors investing heavily in capacity expansion to deal with the extra milk volumes. Further capacity gains may be achieved by extending the processing season into the winter, a key enabler for which being the reduction of duration of the winter maintenance overhaul period. This paper aims to investigate if Lean Six Sigma tools and techniques can be used to enhance operational maintenance performance, thereby releasing additional processing capacity.
Design/methodology/approach
Combining the Six-Sigma Define, Measure, Analyse, Improve, Control (DMAIC) methodology and the structured approach of Turnaround Maintenance (TAM) widely used in process industries creates a novel hybrid model that promises substantial improvement in maintenance overhaul execution. This paper presents a case study applying the DMAIC/TAM model to Ireland’s largest dairy processing site to optimise the annual maintenance shutdown. The objective was to deliver a 30% reduction in the duration of the overhaul, enabling an extension of the processing season.
Findings
Application of the DMAIC/TAM hybrid resulted in process enhancements, employee engagement and a clear roadmap for the operations team. Project goals were delivered, and original objectives exceeded, resulting in €8.9m additional value to the business and a reduction of 36% in the duration of the overhaul.
Practical implications
The results demonstrate that the model provides a structure that promotes systematic working and a continuous improvement focus that can have substantial benefits for wider industry. Opportunities for further model refinement were identified and will enhance performance in subsequent overhauls.
Originality/value
To the best of the authors’ knowledge, this is the first time that the structure and tools of DMAIC and TAM have been combined into a hybrid methodology and applied in an Irish industrial setting.
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Elena Stefana, Paola Cocca, Federico Fantori, Filippo Marciano and Alessandro Marini
This paper aims to overcome the inability of both comparing loss costs and accounting for production resource losses of Overall Equipment Effectiveness (OEE)-related approaches.
Abstract
Purpose
This paper aims to overcome the inability of both comparing loss costs and accounting for production resource losses of Overall Equipment Effectiveness (OEE)-related approaches.
Design/methodology/approach
The authors conducted a literature review about the studies focusing on approaches combining OEE with monetary units and/or resource issues. The authors developed an approach based on Overall Equipment Cost Loss (OECL), introducing a component for the production resource consumption of a machine. A real case study about a smart multicenter three-spindle machine is used to test the applicability of the approach.
Findings
The paper proposes Resource Overall Equipment Cost Loss (ROECL), i.e. a new KPI expressed in monetary units that represents the total cost of losses (including production resource ones) caused by inefficiencies and deviations of the machine or equipment from its optimal operating status occurring over a specific time period. ROECL enables to quantify the variation of the product cost occurring when a machine or equipment changes its health status and to determine the actual product cost for a given production order. In the analysed case study, the most critical production orders showed an actual production cost about 60% higher than the minimal cost possible under the most efficient operating conditions.
Originality/value
The proposed approach may support both production and cost accounting managers during the identification of areas requiring attention and representing opportunities for improvement in terms of availability, performance, quality, and resource losses.
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Jayakrishna Kandasamy, Fazleena Badurdeen and Tharanga Rajapakshe
Anna Trubetskaya, Alan Ryan and Frank Murphy
This paper aims to introduce a model using a digital twin concept in a cold heading manufacturing and develop a digital visual management (VM) system using Lean overall equipment…
Abstract
Purpose
This paper aims to introduce a model using a digital twin concept in a cold heading manufacturing and develop a digital visual management (VM) system using Lean overall equipment effectiveness (OEE) tool to enhance the process performance and establish Fourth Industrial Revolution (I4.0) platform in small and medium enterprises (SMEs).
Design/methodology/approach
This work utilised plan, do, check, act Lean methodology to create a digital twin of each machine in a smart manufacturing facility by taking the Lean tool OEE and digitally transforming it in the context of I4.0. To demonstrate the effectiveness of process digitisation, a case study was carried out at a manufacturing department to provide the data to the model and later validate synergy between Lean and I4.0 platform.
Findings
The OEE parameter can be increased by 10% using a proposed digital twin model with the introduction of a Level 0 into VM platform to clearly define the purpose of each data point gathered further replicate in projects across the value stream.
Research limitations/implications
The findings suggest that researchers should look beyond conversion of stored data into visualisations and predictive analytics to improve the model connectivity. The development of strong big data analytics capabilities in SMEs can be achieved by shortening the time between data gathering and impact on the model performance.
Originality/value
The novelty of this study is the application of OEE Lean tool in the smart manufacturing sector to allow SME organisations to introduce digitalisation on the back of structured and streamlined principles with well-defined end goals to reach the optimal OEE.
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Thomas Trabert, Luca Doerr and Claudia Lehmann
The organizational digital transformation (ODT) in companies presents small and medium-sized enterprises (SMEs) – who remain at the beginning of this transformation – with the…
Abstract
Purpose
The organizational digital transformation (ODT) in companies presents small and medium-sized enterprises (SMEs) – who remain at the beginning of this transformation – with the challenge of offering digital services based on sensor technologies. Against this backdrop, the present paper identifies ways SMEs can enable digital servitization through sensor technology and defines the possible scope of the organizational transformation process.
Design/methodology/approach
Around 21 semi-structured interviews were conducted with experts from different hierarchical levels across the German manufacturing SME ecosystem. Using the Gioia methodology, fields of action were identified by focusing on influencing factors and opportunities for developing these digital services to offer them successfully in the future.
Findings
The complexity of existing sensor offerings must be mastered, and employees' (data) understanding of the technology has increased. Knowledge gaps, which mainly relate to technical and organizational capabilities, must be overcome. The potential of sensor technology was considered on an individual, technical and organizational level. To enable the successful implementation of service offerings based on sensor technology, all relevant stakeholders in the ecosystem must network to facilitate shared value creation. This requires standardized technical and procedural adaptations and is an essential prerequisite for data mining.
Originality/value
Based on this study, current problem areas were analyzed, and potentials that create opportunities for offering digital sensor services to manufacturing SMEs were identified. The identified influencing factors form a conceptual framework that supports SMEs' future development of such services in a structured manner.
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