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This paper explores the orchestration of digital innovation in Industry 4.0 organisations.

The study applies the activity theory to explorative multiple case studies. Observations of innovation activities in five business cases take place at two large international organisations.

The results underline five logics of action that drive digital innovation: (1) digital transformation, (2) technology translation, (3) catalyst agents, (4) digital thread and (5) empowerment. Further, the case study organisations highlight the importance of developing a sustainable culture capable of continuously adopting new technologies, processes and infrastructure that will allow the management of digital innovations.

The study empirically shows the motivations and challenges in orchestrating digital innovation in Industry 4.0 organisations.

The purpose of this research was to study the impacts of adoption of additive manufacturing (AM) for spare parts procurement, specifically in the context of supply chain resilience (SCR) especially regarding efficient spare parts inventory management. Furthermore, key narratives in the adoption of AM toward better SCR are explored.

In-depth interviews with semi-structured open-ended questionnaire were conducted to collect primary qualitative data from 24 supply chain management (SCM) experts. Respondents consisted of experts across various industries. The data were analyzed by thematic content analysis method.

The results indicated that AM could be a suitable tool to reduce dependence on original equipment manufacturers (OEMs) for spare parts procurement. Data analysis also revealed that AM adoption might lead to significant cost and lead time reduction. Designs protected as intellectual properties (IP), substantive post-processing requirements and material compatibility were revealed to be barriers in adoption.

The impacts of utilizing AM for procurement of spare parts on the overall resilience of the supply chain were highlighted. Theoretical analysis of the findings was based on theoretical aspects of SCR. This was especially regarding efficient spare parts inventory management. The study results revealed the factors responsible adoption of the AM technology. A novel approach was undertaken to study the effect of AM adoption on “time-to-market” of newly launched products.

The research provided insights regarding practical applications of AM adoption in spare parts procurement. The study could be beneficial to the early adopters of AM across industries for making managerial decisions. Unfamiliarity of supply chain managers with the AM technology was believed to be a major reason to adopt the technology. The study provided essential inputs regarding challenges and alternate adoption strategies of AM. Thus, the research was believed to be of potential value for creating awareness among supply chain managers regarding AM technology.

The research provided new insights on the impact of AM adoption in the context of SCR toward efficient spare parts inventory management. Various limiting and facilitating factors specific to Indian context were also explored.

Crises, such as COVID-19 pandemic, are critical events that provoke important changes in organizational practices, regulations and actors' roles. The pharmaceutical sector has been strongly affected because of the urgency to produce drugs that are effective and safe. However, the validation process and regulations are historically restrictive in this sector. This study aims to study how biotechnology firms, small companies lacking resources, have undertaken strategic actions during crisis time to induce important changes to their advantage within such a highly regulated environment.

Interviews were conducted with 21 managers in four mRNA-based biotechnology firms.

Results showed that rhetorical strategies and institutional actions are used in order to manage change opportunities. Media attention, greater openness of state agencies and public willingness to accept new ways of treatment illustrated this opportunity of change in favor of biotechnology firms.

Highly regulated environments tend to be unfavorable to smaller firms with limited resources to overcome these constraints. The authors show that times of crisis can reverse this assumption through the provision of new opportunities as long as the smaller firms skillfully use strategic actions to exploit the institutional changes at play.

This paper examines the role of purchasing in facilitating early supplier involvement in new product development (NPD) in contexts of technological uncertainty (TU). Taking a purchasing perspective, it develops a moderate model to explain the effects of supplier involvement on NPD performance and whether and how knowledge orchestration capability (KOC) and TU affect these relationships. Additionally, KOC drivers are defined.

A total of 317 usable questionnaires from Chinese high-technology firms were collected. Moderated multiple regression (MMR) was used to test all hypotheses. Resource orchestration theory (ROT) was the adopted theoretical lens.

Two forms of supplier involvement (as knowledge source and co-creator) were found to distinctly affect NPD performance and have potential substitutive relationships. Purchasing KOC positively moderates the relationships between forms of supplier involvement on NPD performance. TU strengthens the moderating role of purchasing KOC. Furthermore, purchasing status and supply complexity are important antecedents for purchasing KOC.

These findings serve as a blueprint for involving purchasing in technologically uncertain NPD projects and improve supplier NPD integration. Additionally, management should recognize the purchasing function's role and empower it to identify ideas, knowledge and solutions within supply networks.

This research contributes to the ROT by examining the role of purchasing KOC on supplier involvement in NPD performance, especially under TU. Moreover, it demonstrates significant and positive relations between purchasing department status and external supply complexity on its KOC.

This study aims to discuss the state-of-the-art digital factory (DF) development combining digital twins (DTs), sensing devices, laser additive manufacturing (LAM) and subtractive manufacturing (SM) processes. The current shortcomings and outlook of the DF also have been highlighted. A DF is a state-of-the-art manufacturing facility that uses innovative technologies, including automation, artificial intelligence (AI), the Internet of Things, additive manufacturing (AM), SM, hybrid manufacturing (HM), sensors for real-time feedback and control, and a DT, to streamline and improve manufacturing operations.

This study presents a novel perspective on DF development using laser-based AM, SM, sensors and DTs. Recent developments in laser-based AM, SM, sensors and DTs have been compiled. This study has been developed using systematic reviews and meta-analyses (PRISMA) guidelines, discussing literature on the DTs for laser-based AM, particularly laser powder bed fusion and direct energy deposition, in-situ monitoring and control equipment, SM and HM. The principal goal of this study is to highlight the aspects of DF and its development using existing techniques.

A comprehensive literature review finds a substantial lack of complete techniques that incorporate cyber-physical systems, advanced data analytics, AI, standardized interoperability, human–machine cooperation and scalable adaptability. The suggested DF effectively fills this void by integrating cyber-physical system components, including DT, AM, SM and sensors into the manufacturing process. Using sophisticated data analytics and AI algorithms, the DF facilitates real-time data analysis, predictive maintenance, quality control and optimal resource allocation. In addition, the suggested DF ensures interoperability between diverse devices and systems by emphasizing standardized communication protocols and interfaces. The modular and adaptable architecture of the DF enables scalability and adaptation, allowing for rapid reaction to market conditions.

Based on the need of DF, this review presents a comprehensive approach to DF development using DTs, sensing devices, LAM and SM processes and provides current progress in this domain.

This paper explores the strategies adopted by purchasing firms to streamline relationships with suppliers amid the COVID-19 outbreak.

This study employed a multiple case study method and conducted 42 semi-structured interviews with procurement managers from six firms in the United Arab Emirates.

This study reveals six helpful strategies that purchasing firms can undertake to streamline supplier relationship management (SRM) in the wake of COVID-19. Precisely, purchasing firms are revising supply chain costs, planning orders in advance, sharing critical information with suppliers, planning major contingencies, developing a robust relationship with suppliers (e.g. partnership) and finally, improving the supplier's visibility.

This study comes with certain limitations. First, the results are based on a limited number of 42 interviewees. Hence, the study’s results cannot be generalized to a broader population. Second, the data were collected based on the cause and effect relationship.

The findings of this study can help purchasing firms learn and use new appropriate strategies to manage the relationship with their suppliers in the midst of the COVID-19 outbreak.

This study contributes to SRM literature by unveiling six distinct strategies (such as revising supply chain costs, planning orders in advance, sharing critical information, etc.) that purchasing firms have employed to develop a robust and healthy working relationship with the suppliers in the midst of the COVID-19 outbreak.

The purpose of this paper is to investigate the relationship between geographical traits consisting of institutional traits and cultural traits, and supply chain agility in third-party logistics providers.

A theoretical model was developed and assessed through a structured questionnaire survey using cross-sectional data from 170 third-party logistics providers registered in Uganda. To validate the suggested model, data were analysed using exploratory factor analysis, correlations and regressions.

Correlation results revealed that all institutional and cultural geographical traits in the model, i.e. infrastructural frameworks, regulatory frameworks, organisational culture and national culture are positively and significantly associated with supply chain agility. However, a further analysis using regression revealed that regulatory framework and organisational culture are the only significant predictors of supply chain agility and together, all the four traits account for 28.1% variance in supply chain agility.

This study applies the institutional theoretical framework to provide an empirical understanding of the role of institutional and cultural factors in supply chain management practice. Furthermore, it confirms and expands on the existing theories about supply chain agility.

The findings provide firm ground for managerial decisions regarding emphasis on external factors in building firms' supply chain agility. Managers should scan the macro-environment and make conscious firm decisions regarding institutions and culture in certain geographical locations. The host countries should also be aware of their role in building firms' supply chain agility.

Distinctive from the literature on antecedents of supply chain agility, which predominantly focuses on the firm and supply chain capabilities, this study utilises the paradigm of institutional fit to empirically show how managers in a developing country wishing to build supply chain agility should not only focus on their supply chains and internal operations, but go beyond and consider geographical traits when making firm location and/or operational decisions for certain geographical contexts in order to achieve fit.

This paper shows how organisational agility allows companies to adopt the necessary changes to remain competitive and produce with a lower environmental impact, implying customers in the value chain.

This investigation uses a cross-sectional design to collect data on the study variables from a sample of 260 Spanish manufacturing organisations. Structural equations with PLS are applied to test hypotheses.

Results show that organisational agility is positively related to eco-innovation. Furthermore, eco-innovation results in a positive relationship with organisational performance. Finally, it has been found that customer involvement positively moderates the effect of organisational agility on new green processes and products and makes green product innovations more successful.

Conclusions indicate that would be advisable that innovative companies promote capabilities such as organisational agility, and integrating customer involvement throughout their value chain, for developing successful new green products increasing their results with a lower environmental impact. Likewise, the customer’s involvement in eco-innovation projects has been found, in companies with agile behaviours, that could aim to increase their performance, helping to react more quickly to market trends and saving money in product development.

This investigation addresses three gaps previously identified in the literature. Firstly, it covers a lack of research on how agility could foster green innovation and how this could positively affect their performance outcomes. Secondly, it studies a moderating factor, customer involvement, and its effects on the relationship between organisational agility and eco-innovation in product and process and between eco-innovation in product and organisational performance. Thirdly, it introduces dynamic capabilities theory through agility concept to study the dynamic context of the eco-environment.

This study aims to analyse how multinational corporations (MNCs) organise value chain activities to penetrate new market segments. It contributes by expanding traditional decisions regarding the vertical fine-slicing of value chain activities (whether performed internally or externally) and the consideration of resource-sharing decisions (integration or separation) for each value chain function.

The authors draw on primary data collected from two case study firms operating in the large emerging Chinese market: Volvo Construction Equipment AB and Epiroc AB. In-depth cases illustrate how foreign MNCs expand into new market segments and simultaneously target both the lower-priced mid-market and the premium segments in the Chinese mining and construction industry.

The results reveal that product diversification creates challenges for managers who must oversee new (vertical) value chains, often simultaneously. Beyond geography and modes of governance, managers must decide whether to integrate or separate value chain activities for the new product lines. The study identifies four main strategic choices for firms to address this complexity, focusing on the decision to internalise or externalise (i.e. within or across organisational boundaries) and integrate or separate value chain activities between different product lines.

This study builds upon the internalisation theory and recent international business contributions that focus on value chain configurations to explain MNCs’ product diversification as a growth strategy in a host emerging market. It also sheds light on the choice of conducting new activities in-house or externally and elucidates firms’ managerial decisions to operationally integrate or separate individual value chain activities. The study provides insights into the drivers explaining managerial decisions to configure value chain activities across product lines and contributes to the growing body of literature on MNC activities in emerging economies by highlighting that product diversification impacts entry mode diversity and resource sharing across units.

The learning outcomes are as follows: learning about the concept of informal innovation in comparison with the formal innovations; understanding the drivers and barriers of informal innovation in an organisation; identifying the enablers of informal innovation in an organisation; and analysing the outcomes of informal innovation in non-monetary/non-financial/non-pecuniary terms.

The case study emphasises the importance of informal innovations in the manufacturing industry. The case is an attempt by the authors to bring about a clear distinction between the formal and informal open innovations.

The teaching case can be used for undergraduate- and post-graduate-level courses such as BBA, MBA and executive MBA.

Teaching notes are available for educators only.

CSS 11: Strategy.