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A majority of products for manufacturing or consumers have multiple characteristics that must meet the requirements of the customer. For example, a steel beam any have dimensional tolerances on its length, width, or height and functional tolerances on its strength. The characteristics are influenced by different processes that create the product. For an individual characteristic, process capability measures exist that convey the degree to which the characteristic meets the specification requirements. Such measures may indicate the proportion of nonconforming product related to the particular characteristic, under some distributional assumptions of the characteristic. For products with multiple characteristics, the unit costs of rectification may be different, making the satisfaction of some characteristics meeting customer requirements more important than others. In this paper, an aggregate process capability performance measure is developed that considers the relative importance of the characteristic based on unit costs of nonconformance. Based on the aggregate measure, appropriate process capability measures for the individual measures are also derived. Bounds on the aggregate capability measures are also established.

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.

Organization development is focused on implementing a planned process of positive humanistic change in organizations through the use of social science theory, action research, and data-based feedback methods. The role of personality in that change process, however, has historically been ignored or relegated to a limited set of interventions. The purpose of this chapter is to provide a conceptual overview of the linkages between personality and OD, discuss the current state of personality in the field including key trends in talent management, and offer a new multi-level framework for conceptualizing applications of personality for different types of OD efforts. The chapter concludes with implications for research and practice.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

The aim of the study is to explore the relationship between organizational leadership capability and organizational performance in the context of market orientation in Estonian financial services organizations.

A total of eight organizations from the Estonian financial services sector participated in this study: the five largest banks (∼95 per cent of the market), the largest leasing organization (∼50 per cent of the market) and the two largest insurance companies (∼50 per cent of the market). The data used includes: aggregated and non‐aggregated evaluations by customers, and aggregated financial data. The methodology combines two approaches for testing the hypotheses: a quantitative OLS regression analysis of the evaluations from 555 customers, and ranking mean values of the aggregated assessments from customers and financial data in quartiles for all eight organizations.

The results of the study reveal a relationship between specific organizational leadership capabilities and organizational performance.

The study suggests that the positive relationship between leadership and organizational performance at the organizational level explains how an organization manages in the context of its external environment. However, the results of the authors’ investigation are only valid in the Estonian financial services context, and the influence of organizational leadership capability on organizational performance in organizations in other service sectors could differ from these results.

This paper demonstrates that organizational leadership capability, expressed as the interaction between the main behavioural principles of an organization marked as organizational orientation and adaptation, has a clear relationship with organizational performance.

Organizational researchers have become increasingly interested in multi-level constructs – that is, constructs that are meaningful at multiple levels of analysis. However, despite the plethora of theoretical and empirical work on multi-level topics, explicit frameworks for validation of multi-level constructs have yet to be fully developed. Moreover, available principles for conducting construct validation assume that the construct resides at a single level of analysis. We propose a five-step framework for conceptualizing and testing multi-level constructs by integrating principles of construct validation with recent advancements in multi-level theory, research, and methodology. The utility of the framework is illustrated using theoretical and empirical examples.

To explore the relationship between the dimensions of supply chain flexibility and firm performance in a sample of automotive suppliers.

Empirical survey of a representative sample of 126 Spanish automotive suppliers during the months of September and October 2003. Data gathered through a mail survey to purchasing managers by using a structured questionnaire. Spearman correlation coefficients were used to analyse the relationship between the different supply chain flexibility dimensions, between supply chain flexibility dimensions and firm performance dimensions, and between supply chain flexibility dimensions and environmental uncertainty dimensions. A multivariate analysis studied the determinants of supply chain flexibility.

The research has found a positive relation between a superior performance in flexibility capabilities and firm performance, although flexibility dimensions are not equally important for firm performance. On the other hand, the results show that companies enhance more the basic flexibility capabilities (at the shop floor level) than aggregate flexibility capabilities (at the customer‐supplier level). However, aggregate flexibility capabilities are more positively related to firm performance than basic flexibility capabilities. Thus, companies might miss opportunities to improve competitiveness by underestimating customer‐supplier flexibility capabilities. Finally, the results indicate that flexibility capabilities are enhanced in supply chains with higher environmental uncertainty, technological complexity, and mutual understanding, but with lower interdependence among the agents involved in the supply chain.

There are other factors not included in the model that could impact the relationship between flexibility, supply chain characteristics and firm performance. On the other hand, the research has used cross‐sectional data, which are limited in order to explain causal relationships. Another limitation of the research is that we did not use any secondary data (like manual financial reports) to crosscheck firm performance.

The results of the research contribute to a better understanding of the forces and constraints that companies face with flexibility capabilities.

The paper analyses the relationship between supply chain flexibility dimensions and firm performance. The model provides a framework of supply chain flexibility dimensions that may be used as a test base for further research.

The essential investments in new product development (NPD) made by industrial companies entail effective management of NPD activities. In this context, performance measurement is one of the means that can be employed in the pursuit of effectiveness.

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

The purpose of this paper is to investigate trends in the dimensions of low, medium, and high knowledge management (KM) capability of business process outsourcing (BPO) firms. It also explores the trends in BPO performance with different levels of KM capabilities of BPO firms. Moreover, the study determines how firm characteristics, such as size, age, industry, and outsourcing age, affect KM capability.

A survey was employed to collect data on managers from 605 firms. K-means cluster analysis was performed on the aggregate measures of the four KM capability dimensions and BPO performance to reveal trends. Subsequently, MANOVA was used to evaluate the effects of four firm characteristics on KM capability, and individual ANOVA tests were performed to examine the specific differences among the four dimensions.

Among the four dimensions of KM capability, knowledge application is the most significant. Knowledge protection is the second highest in terms of expressing the profile for low KM capability firms, but the lowest among the four dimensions of KM capability for medium and high KM capability firms. Each dimension of KM capability affects BPO performance positively. Firm size, age, industry, and outsourcing age differentially affect the dimensions of KM capability.

This study presents a theoretical model of firm characteristics, KM capability, and BPO performance. Through the model, ideas are offered: firms with high KM capability significantly differ from those with low and medium KM capabilities; different firms exhibit different KM capabilities; developing knowledge application capability should be the priority in managing BPO; and improving KM capability is an effective means to enhance BPO performance.