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1 – 10 of 492Although it is a well-known notion that “a family firm does not survive beyond the third generation”, owing to the ineffective tacit knowledge transfer, studies investigating the…
Abstract
Purpose
Although it is a well-known notion that “a family firm does not survive beyond the third generation”, owing to the ineffective tacit knowledge transfer, studies investigating the relationship between generational evolution and knowledge innovation is scarce. Thus, this case study revolving Sin Kwang Plastic Resources Berhad (SKP) seeks to address this gap in literature.
Design/methodology/approach
To assess the development of family business, a longitudinal case study was performed by documenting the entire evolutionary process starting from its establishment until now. The historical profiles for SKP were obtained from the previous annual reports submitted to the government's Companies Commission (SSM). Secondary materials from the Federation of Malaysian Manufacturers (FMM) and the edge newspaper and articles on the company were also gathered. Throughout the in-depth interviews, the author can see how the next generation of this family firm innovates and implements tacit knowledge innovation in original equipment manufacturing (OEM) by adhering to the Japanese industrial standards.
Findings
Findings show that the second generation utilized the company's extensive knowledge in plastic contract manufacturing in SKP for tacit knowledge conversion, triggers the birth of STS Tecnic Berhad, a subsidiary company that manufactures plastic parts for the industrial packaging and automotive industry. To simplify the process of managing the complex business, SKP opted to “prune the family tree” by dividing the business, involving fewer managers and restricting the number of family shareholders.
Practical implications
This case study traces how Gan's family's tacit knowledge in plastic contract manufacturing have been acquired from the experience of contract manufacturing with the Japanese multinational corporations (MNCs) by further commercializing the tacit knowledge into different companies for different plants. SKP promotes tacit knowledge innovation in the learning organization, thus responding to the firm's sustainability.
Originality/value
This study demonstrates that knowledge transformation plays vital roles in product development and gaining competitive advantage. The success of this business is founded by the building of shared values, norms and technical understanding in plastic contract manufacturing among the Japanese MNCs in Malaysia.
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Santosh K. Mahapatra, Ram Narasimhan and Paolo Barbieri
The purpose of this paper is to examine the buyer–supplier exchange dynamic in terms of the influence of product and market contingencies on the interfirm connectivity, governance…
Abstract
Purpose
The purpose of this paper is to examine the buyer–supplier exchange dynamic in terms of the influence of product and market contingencies on the interfirm connectivity, governance and exchange performance of interconnected dyads in multitier supply chains (MSCs).
Design/methodology/approach
Using an inductive approach, the authors analyzed the supply network of a high-end motorcycle manufacturer (OEM). Four sets of “interconnected dyads” constituting four embedded units of analysis were considered, each involving the OEM, its tier 1 and corresponding tier 2 suppliers. These interconnected dyads representing four strategic components and their sub-components offer contrasts in terms of product and market contingencies.
Findings
This analysis reveals that product and market contingencies influence patterns of dependence among firms. These in turn impact interfirm connectivity (i.e. structural characteristic), and the degree of contract formalization, collaboration and concentration of decision-making power (i.e. governance characteristics) in the interconnected dyads. The authors also found that structural and governance aspects can have mutual influence, leading to satisfactory or unsatisfactory outcomes. Propositions synthesizing the relationships among the constructs are developed.
Research limitations/implications
The constructs and their underlying relationships need to be further refined if we are to devise hypotheses and validate them at a large-scale empirical level.
Originality/value
This is one of the first studies to explore the influence of business contingencies on the complex buyer–supplier exchange dynamic in MSCs having a “beyond the dyad” perspective. The authors address why and how various types of interconnectivity are developed, and how the interplay among interfirm dependence, connectivity and governance influences the suppliers’ performance in the MSCs.
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The transition from marketing strategy to selling is seldom smooth. Too often it is left to chance but successful business results depend on effective management of this…
Abstract
The transition from marketing strategy to selling is seldom smooth. Too often it is left to chance but successful business results depend on effective management of this transition: coherent and consistent policies, and good communications all along the line from marketing executives to field salesmen.
The purpose of this paper is to examine the structural relationship model among transformational leadership, sustainable leadership (SL), lean manufacturing practices and…
Abstract
Purpose
The purpose of this paper is to examine the structural relationship model among transformational leadership, sustainable leadership (SL), lean manufacturing practices and sustainability performance.
Design/methodology/approach
The data were collected from the middle and senior managers working in small and medium enterprises of Thai manufacturing industry. Regarding the quantitative approach, the data were collected by means of survey from 598 respondents from 374 companies. Qualitative data were collected from 40 participants by participant observation, non-participant observation and in-depth interview.
Findings
The model reported that lean manufacturing has a partial mediate effect on the relationship between transformational leadership and sustainability performance, and between SL and sustainability performance. The structural model is different in automotive and nonautomotive companies, and the structural model is different among the companies which implemented lean program for less than five years and above five years. The data from in-depth interview informed that lean practices are appropriate for automotive industry though with less implementation in other industries. Firms pay most attention on customer involvement with some attention on employee and supplier involvement. Managers give advices and exchange ideas with their followers rather than inspiring and giving opportunities to make decision.
Research limitations/implications
The findings may also enable Thai managers to realize that lean practices are appropriate for any industry. The first thing to do before launching lean program to all process is that the company should buy-in the understanding of managers about lean concept and implementation. Willingness with well understanding and realizing importance of lean program will lead to superior results, especially operational, economic and sustainable performance.
Originality/value
The reliability and validity measurements confirmed that both SL and environmental and social performance are appropriate for manufacturing industries. This study provides evidence of the positive relationship between SL and lean manufacturing, lean manufacturing and sustainability performance, as well as the partial mediate effect of lean manufacturing on the relationship between SL and sustainability performance, which are the additional contributions to research in academic field. The results confirmed the positive relationship between transformational leadership and lean manufacturing. The results reported that there is difference of lean practices between automotive and nonautomotive companies, and between companies which implemented lean program less than five years and above five years. The structural relationship result reported that transformational leadership has effects on lean manufacturing whereas SL has no effect on lean manufacturing, which asserted the previous study in which one leadership model is more appropriate for success within lean implementations.
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Dezhi Chen, William Wei, Daiping Hu and Etayankara Muralidharan
Although there have been many discussions on the status and development of original equipment manufacturers (OEMs), theory on how they survive is minimal. Little is known about…
Abstract
Purpose
Although there have been many discussions on the status and development of original equipment manufacturers (OEMs), theory on how they survive is minimal. Little is known about how OEMs survive and upgrade to other business models, such as original design manufacturers (ODMs) and original brand manufacturers (OBMs), in emerging economies. The purpose of this paper is to extend the theory on the survival path of OEMs from the perspective of emerging countries by examining how OEMs survive cost pressures and upgrade to ODMs or OBMs.
Design/methodology/approach
Using a multi-case study method, this study analyzes the survival path employed by OEMs by examining eight firms in the Chinese toy industry.
Findings
This study shows that OEMs remain weak in the global toy industry chain due to labor costs. While some OEMs move to low-cost regions, others turn to OBM management, after transitioning through an ODM model, by investing in research and development and marketing.
Originality/value
This study explores the survival paths of OEM enterprises, showing that OEMs can first upgrade to ODMs and then to OBMs, or they can directly upgrade to OBMs. Shifting from OEM to ODM is an important step in the transition process, although the contract that OEMs have with their foreign partners does not change significantly.
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Prabir Kumar Bandyopadhyay and Bowon Kim
In the present study, the authors have explored the research questions, “How do companies in the engineering and automobile manufacturing sector in India determine the…
Abstract
Purpose
In the present study, the authors have explored the research questions, “How do companies in the engineering and automobile manufacturing sector in India determine the coordination strategy with their suppliers?” and “Can we develop a framework which helps the company adopt a particular coordination strategy?” The authors also aimed for developing a generalizable theory of supply chain coordination (SCC) strategy.
Design/methodology/approach
The authors have studied upstream SCC practices at eight Original Equipment Manufacturers (OEMs) in the Indian engineering manufacturing and automobile sector and identified 11 types of SCC in three categories of suppliers, namely large, medium and small. Each SCC is characterized by the category of items as the authors found the OEMs follow different strategies for different types of items. Initially, the authors started the study with the objective of strategy discovery, and later on, they prescribed a strategic framework based on the consolidated knowledge that they gathered at the discovery phase. The authors propose a SCC strategy framework consisting of four dimensions, i.e. time horizon, the formality of engagement, price and volume for the upstream supply chain. With the framework, the authors have identified the driving factors for choosing a particular strategy. The authors have found both OEMs and suppliers in India prefer to have a long-term relationship for building trust, which helps both the OEMs and the suppliers to go the extra mile when needed. Apart from large suppliers supplying technology and proprietary items, OEMs prefer to have an informal relationship so that they enjoy flexibility and attain agility. The price and volume dimensions are dependent on who enjoys more bargaining power.
Findings
The authors propose a SCC strategy framework consisting of four dimensions, i.e. time horizon, formality of engagement, price and volume for the upstream supply chain. With the framework, the authors have identified the driving factors for choosing a particular strategy. The authors have found that both OEMs and suppliers in India prefer to have a long-term relationship for building trust, which helps both the OEMs and the suppliers to go the extra mile when needed. Apart from large suppliers supplying technology and proprietary items, OEMs prefer to have an informal relationship so that they enjoy flexibility and attain agility. The price and volume dimensions are dependent on who enjoys more bargaining power.
Originality/value
This study made a substantial contribution to the literature by presenting a SCC strategy framework, ISCM (Indian Supply Chain Coordination Model). To the best of the authors’ knowledge, in the literature, there was no concrete framework for analyzing the coordination strategy specific to the Indian situation. The framework proposed has been derived based on empirical findings; hence, it is not a conceptual one. The authors also developed a supply chain typology. This study made a substantial contribution to the literature by presenting a SCC strategy framework, ISCM. To the best of the authors’ knowledge, in the literature, there was no concrete framework for analyzing the coordination strategy specific to the Indian situation. The framework proposed has been derived based on empirical findings; hence, it is not a conceptual one. The authors also developed a supply chain typology.
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