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This study proposes targeted modernization of the Department of Defense (DoD's) Joint Forces Ammunition Logistics information system by implementing the optimized innovative information technology open architecture design and integrating Radio Frequency Identification Device data technologies and real-time optimization and control mechanisms as the critical technology components of the solution. The innovative information technology, which pursues the focused logistics, will be deployed in 36 months at the estimated cost of $568 million in constant dollars. We estimate that the Systems, Applications, Products (SAP)-based enterprise integration solution that the Army currently pursues will cost another $1.5 billion through the year 2014; however, it is unlikely to deliver the intended technical capabilities.

This paper aims to highlight that a define, measure, analyze, improve, and control (DMAIC) project should be carried out keeping the broader business goal of achieving continuous improvement in mind and that a design of experiment (DOE) based improvement approach should be preferred to achieve this goal.

“Ease of control” of the improved process and “gain in process knowledge” from a DMAIC study are identified as two measures for judging the contribution of a DMAIC project towards continuous improvement. Various improvement approaches are classified into seven groups and the likely impact of each of these seven approaches on the above two quality measures are discussed.

The improvement approach adopted during the improve phase is partially determined by the nature of the root cause(s) – type X or type Y. The type Y root cause leads to the adoption of the “innovation‐prioritization” approach, which is very popular but has many limitations. Accordingly, an “analysis strategy” is proposed for efficient identification of the X‐type root causes.

The above findings suggest that one should try to identify as many X‐type root causes as possible. However, in case of service and transactional processes one finds it difficult to do so. Much more research is necessary in the area of service process design before the path of continuous improvement of such processes can be embarked on effectively.

It is expected that an awareness of the broader goal of continuous improvement, the classification of the end states of the analyze phase, the proposed “analysis strategy” and the practical guidelines provided for selecting an appropriate improvement approach will be helpful in executing the analyze and improve phases of DMAIC better.

Many studies have found that Lean practices provide better performance in a stable business environment. However, there is limited information on how Lean practices influence performance gains (defined in this paper as improvement and sustenance of performance) in an uncertain (complex and dynamic) environment. This study aims to investigate how the implementation of Lean helps to sustain performance in such context.

The study draws on an in-depth investigation of two capital goods manufacturing engineer-to-order (ETO) cases, in which performance sustenance is discussed in relation to the extent, locus and extensiveness of implemented Lean practice bundles.

Findings indicate that a higher extent of Lean practices’ implementation, covering both shop floor and transactional processes, increases the possibility of performance sustenance in ETO. Furthermore, a coherent approach in the pre-, during- and post-implementation phases of the Lean change process is required to foster performance sustenance. Lean practices in ETO are modified to suit context change from repetitive manufacturing.

This study proposes performance sustenance as a performance measure in a highly uncertain context, such as ETO, as a single reference cannot effectively measure performance improvements over diverse orders. From this perspective, appropriate Lean implementation contributes towards building capabilities for flexibly and proactively managing uncertain circumstances.

Even companies operating in highly uncertain (complex and dynamic) contexts may benefit from significant performance gains, thanks to the Lean implementation. This can be achieved by a balanced implementation of practices at shop floor and transactional processes, and their mindful customisations.

The study compares Lean implementation in ETO with that of high-volume–low-variety systems established in the literature. It qualitatively discusses how Lean implementation as an overarching effort both in shop floor and transactional processes leads to better sustenance of achieved performance improvements in shop floor under high uncertainty.

Understanding employees’ multi-dimensional motivations is at the core of realizing the potential of a well-designed human resource (HR) system. This study aims to investigate whether the effects of HR practices on employee motivations, and their performance would be dependent on the service orientation of HR department.

The authors collected data in two surveys: a pilot survey and a main survey with a two-wave design. The pilot survey with 93 respondents was to verify the newly developed HR service orientation scale. In the main survey, a total of 276 supervisor-subordinate pairs from 48 companies were valid for analysis.

The authors find support for their hypothesis that promotion-oriented motivation mediates the relationship between discretionary HR practices and employee outcomes [in-role performance and organizational citizenship behavior (OCB)]. Furthermore, the indirect effect of discretionary HR practices on employee outcomes is stronger when the HR service orientation is higher. Transactional HR practices, however, are not evidenced to relate to employee prevention-focused motivation and outcomes.

The findings illustrate a comprehensive process of HR practices on employees’ multi-dimensional motivations. High service skills of HR professionals in handling internal employees’ needs could amplify employees’ promotion-focused motives, which in turn increase their in-role performance and OCB.

In sum, the authors' study contributes to both human resource management (HRM) and employee motivation literature by demonstrating the different impacts of discretionary and transactional HR practices on employees’ motivations. In addition, by revealing HR service orientation as an important contingency factor, the authors shed greater light on when and how HR practices can motivate employees.

The purpose of this chapter is to introduce the capability map that addresses the potential of transactional Shared Service Centers (SSCs). The mapping approach represents a heuristic logic that provides means for analyzing SSC operation, connects SSCs capabilities with their value, and supports academics and practitioners in developing a transactional SSC that is of strategic importance.

This chapter reports on findings from a longitudinal case study within an organization that has implemented a transactional Human Resource (HR) SSC. Over a period of three years, several formal and informal meetings were attended, more than 20 interviews were conducted with SSC MT and customers, over 500 pages of project documentation and memos were studied, which allowed after integration for an in-depth analysis of how resources are bundled to build different types of capabilities.

We uncovered and mapped the operational and dynamic capabilities of a transactional SSC, their role in value creation, and their interdependencies. While the operational capabilities enable the HR SSC to provide day-to-day services to take care of individual end-users and support the business, the dynamic capabilities enable transformation of HR delivery throughout the organization and increase HR’s strategic contribution.

One limitation of this study is the extent to which the capabilities and their role in value creation are generalizable to transactional non-HR SSCs. SSCs providing services that cover other business functions might develop and deploy different capabilities. The use of a capability map is not limited to the capabilities uncovered in this study, however.

In the literature, the primary focus regarding transactional services is limited to cost savings and efficiency. This chapter addresses the potential of the transactional SSC and introduces the capability map as a tool to leverage its potential.

This issue is a selected bibliography covering the subject of leadership.

Implementation of lean manufacturing is currently performed in the production industry; however, for the airline maintenance service industry, it is still in its infancy. Indicators such as work in process, cycle time, on-time performance and inventory are useful indicators to measure lean implementation; however, a financial economic perspective taking fixed assets into consideration is still missing. Hence, the purpose of this paper is to propose a method to measure lean implementation from a fixed asset perspective for this type of industry. With the indicators, continuous improvement scenarios can be explored by value stream discrete event simulation.

From literature, indicators regarding asset specificity to measure lean implementation are found. These indicators are analysed by a linear least square method to know if variables are interrelated to form a preliminary model. The indicators are tested by value stream-based discrete event simulation regarding continuous improvement scenarios.

With the new found lean transaction cost efficiency indicators, namely, turnover, gross margin and inventory pre-fixed asset (T/FA, GM/FA and I/FA, respectively), it is possible to measure operation performance from an asset specificity perspective under the influence of lean implementation. Secondly, the results of implementing continuous improvement scenarios are measured with the new indicators by a discrete event simulation.

This research is limited to the airline maintenance, repair and overhaul (MRO) service industry regarding component repair. Further research is necessary to test the indicators regarding other airline MRO service companies and other sectors of complex service industries like health care.

The lean transaction cost efficiency model provides the capability for a maintenance service company to simulate the effects of process improvements on operation performance for service-based companies prior to implementation.

Simulation of a Greenfield process can involve employees with possible changes in processes. This approach supports the adoption of anticipated changes.

The found indicators form a preliminary model, which contributes to the usage and linkage of theories on lean manufacturing and transaction cost theory – asset specificity.

In today's competitive scenario, effective supply chain management is increasingly dependent on third‐party logistics (3PL) companies' capabilities and performance. The dissemination of information technology (IT) has contributed to change the supply chain role of 3PL companies and IT is considered an important element influencing the performance of modern logistics companies. Therefore, the purpose of this paper is to explore the relationship between IT and 3PLs' performance, assuming that logistics capabilities play a mediating role in this relationship.

Empirical evidence based on a questionnaire survey conducted on a sample of logistics service companies operating in the Italian market was used to test a conceptual resource‐based view (RBV) framework linking IT adoption, logistics capabilities and firm performance. Factor analysis and ordinary least square (OLS) regression analysis have been used to test hypotheses. The focus of the paper is multidisciplinary in nature; management of information systems, strategy, logistics and supply chain management approaches have been combined in the analysis.

The results indicate strong relationships among data gathering technologies, transactional capabilities and firm performance, in terms of both efficiency and effectiveness. Moreover, a positive correlation between enterprise information technologies and 3PL financial performance has been found.

The paper successfully uses the concept of logistics capabilities as mediating factor between IT adoption and firm performance. Objective measures have been proposed for IT adoption and logistics capabilities. Direct and indirect relationships among variables have been successfully tested.

This paper aims to look into the role of transformational leadership and transactional leadership as predictors of employee creativity and organisational innovation. Employee creativity is examined as a potential mediator in the leadership styles–organisational innovation relationships.

A cross-sectional, quantitative design was adopted and structural equation modelling (SEM) techniques were used to analyse data collected from 369 employees working in 39 public coffee enterprises in Vietnam.

Transformational leadership and transactional leadership were significant predictors of employee creativity and organisational innovation. Specifically, transformational leadership was instrumental to employee creativity and organisational innovation while transactional leadership was detrimental to these two variables. Additionally, employee creativity partially mediated the relationships between the two leadership styles and organisational innovation.

Results of this study benefit the management of organisations and policy makers by providing an insight of which leadership style will effectively suit public enterprises to promote employee creativity and foster organisational innovation.

While there is a lack of studies investigating organisational innovation in organisational methods and that the interrelationships between leadership styles, employee creativity and organisational innovation are not fully understood, this study pioneers in examining relationships between leadership styles and organisational innovation that is being mediated by employee creativity. Figuring out that organisational innovation is more likely to be fostered by the positive influence of leadership behaviours and the improvement of employee creativity, in particular, the significant role of employee creativity represents important contributions of the current study.

The purpose of this paper is to study the role of leadership in implementing Lean Six Sigma (LSS) in a knowledge process outsourcing/business process outsourcing (KPO/BPO) service environment. KPO/BPO organizations present unique operational challenges such as client contractual obligations, young worker age profile, high attrition, dynamic outsourced business processes, technological disruptions to list a few. To implement LSS in such an environment, leadership plays a crucial role. While it is known that leadership is a critical success factor for LSS implementation, their role in a recently evolved KPO/BPO sector is hardly studied leading to high failures. The present study aims to address this gap.

A qualitative case study research method is used. A case study protocol consisting of research outline, data collection plan, interview schedule and list of expert reviewers was prepared. A semi-structured interview schedule of the case organization was used that covered exploring the leadership role in terms of their leadership style, communication, employee engagement and their ability to guide program in entire LSS implementation process. Further depth is obtained by considering dimensions of LSS implementation process such as actors involved, processes adopted, performance outcomes, implementation challenges and competency requirements. Primary and secondary data from two case studies yielded rich insights and helped to answer the research questions around role of leadership in LSS implementation for the KPO/BPO service environment.

This research case study demonstrates key leadership competencies that lead to successful implementation of LSS in two KPO/BPO organizations. To handle implementation challenges, a combination of LSS and transformation style of leadership style was observed. Leadership role focussed on coaching and empowering, rather than telling and controlling. Apart from the 17 leadership competencies seen in published literature, the authors observed 12 specific competencies (7 interpersonal and 5 LSS) in two case organizations that enabled effective LSS implementation. This study also gives an in depth understanding of the leadership role and enabling competencies during LSS implementation.

Because of the inherent limitations of case study research method, researchers and practitioners must be cautious to the extent of generalization of findings and the conclusions.

Positioning leadership to managing the LSS implementation in KPO/BPO service operations helps in innovative adaption of standard improvement methodologies (such as LSS) to address their specific problems and deliver on the overall organizational goals.

Current study explores in depth how leadership role impacts LSS implementation in two KPO/BPO case organizations. Studies focussing on LSS service operations model in a KPO/BPO environment are not extensively published, especially those covering leadership role during LSS implementation.