Abstract

Abstract Paper aims This paper aims to understand how the social skill of managers influence the diffusion of operational capabilities in food and auto parts manufacturing networks. Originality There are taken-for-granted beliefs that its diffusion is based on replicating or transferring resources and practices from one site to another. This study is one of the first ones to discuss operational capability and socially skilled actors. Research method Two polar cases were analyzed through the Strategic Action Fields perspective based on a qualitative perspective and 17 in-depth interviews. Main findings Results demonstrate that diffusion of capability among various actors in subsidiaries will depend on a series of multidimensional factors that influence this process as the stability, state, and relationship between fields. Moreover, members tend to adopt a logic (perception of the world) that reflects the point of view of the group, and from this, the actors construct their narratives, recognize the legitimacy and justify their actions. Implications for theory and practice These perspectives have scarcely been explored in Operations management till today and shall open a new dialogue between Operations Strategy and Organization Studies. It offers practical guidance for diffusing and deploying operational capabilities.

Highlights

  • Contemporary management literature indicates that superior performance can be linked to the fact that two or more organizations together can create more value than one unit in isolation (Tsai & Ghoshal, 1998; Björkman et al, 2007; Lindgreen et al, 2012, Spring et al, 2017)

  • Paper aims: This paper aims to understand how the social skill of managers influence the diffusion of operational capabilities in food and auto parts manufacturing networks

  • Proposition 4: “The social actors, members of a strategic action field, tend to adopt a logic that reflects the point of view of the group, and from this, the actors construct their narratives, recognize the legitimacy and justify their actions based on this logic.”

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Summary

Introduction

Contemporary management literature indicates that superior performance can be linked to the fact that two or more organizations together can create more value than one unit in isolation (Tsai & Ghoshal, 1998; Björkman et al, 2007; Lindgreen et al, 2012, Spring et al, 2017). The operational capability is wilfully built (Flynn et al, 2010), and its diffusion is supposed to be organized and deliberated. It is driven by individual expertise (Flynn et al, 2010) and disseminated through relationships and ties established by individuals from different sites (Schoenherr & Narasimhan, 2012; Ranft & Lord, 2002; Björkman et al, 2007). Different business units should have different roles, and, create different implementation requirements (Lin & Hsieh, 2010), and outcomes (Ferdows, 2012) to deploy operations

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