Brazilian Manufacturing Research Articles

Input-output-outcome innovation model: an analysis of the Brazilian manufacturing companies

PurposeThe objectives of this study are to identify which inputs are most relevant for development and successful introduction of product and process innovations and identify the impacts of these two types of innovation on the performance of Brazilian manufacturing companies.Design/methodology/approachThis study analyzes the relationships between input, output and outcome for a sample of 5,586 Brazilian manufacturing companies by using partial least squares structural equation modeling (PLS-SEM).FindingsThe results indicate that (1) product innovations are favored by internal resources, (2) process innovations are favored by external resources, (3) product innovations mainly affect a range of products offered by companies and (4) process innovations mainly affect performance in manufacturing capacity, flexibility and costs.Practical implicationsBy identifying the main efforts to improve the innovation performance and input-output-outcome relationships, the results can contribute to a better decision-making process for innovation investments and management in companies as well as for policymakers. The results are particularly relevant given that the Brazilian case can serve as a reference for other emerging countries.Originality/valueAnalyses of the innovation in input-output-outcome relationships were performed in a comprehensive way by using a set of variables for defining each construct. This allowed each construct to be better measured, which improved the understanding of the relationships between inputs and outcomes mediated by product and process innovations.

Ergonomic adequacy of university tablet armchairs for male and female: A multigroup item response theory analysis

Brazilian university tablet armchairs, often based on international standards, may not suit students well due to anthropometric differences between sexes. This study developed a scale to compare ergonomic adequacy for male and female students, with the potential to significantly impact the future of school furniture. A closed-ended questionnaire containing a four-point Likert scale was administered to 258 students, covering aspects such as seat, backrest, tablet arm, extension, material holder, and general features. The questionnaire's discriminatory capacity and item difficulty were assessed using the Multigroup Item Response Theory. The items presented satisfactory values of factor loading (F>0.3), commonality (h2>0.2), discrimination (ai>0.7), and difficulty (bi) ∈ [-4.105;4.208]. Furthermore, the items cover information in a good region above and below the mean (-4 <θ < 4) for both genders. The scale presented eight levels ranging from no adequacy (θ ≤ 29.99) to maximum adequacy (θ ≥ 90.00). Male and female exhibited different response patterns, indicating opportunities for furniture improvement for each gender. For example, female often disagree more strongly with ergonomic characteristics at lower levels than male, particularly regarding seat height and backrest width. Male and female responded differently, suggesting varied adequacy needs even at the same adequacy level. These findings could guide Brazilian manufacturers and regulators in producing school furniture considering students' diverse body dimensions and comfort, quality, and safety perceptions.

KIBS deepening and manufacturers’ productivity: the moderating role of absorptive capacity

ABSTRACT The outcomes from the associations between manufacturers and knowledge-intensive business services (KIBS) with consequences at the firm and regional levels have been called territorial servitisation. This article explores whether the effect of regional KIBS deepening on productivity growth is dependent on minimum levels of manufacturers’ absorptive capacity. An econometric analysis was carried out using a threshold regression model of 125 Brazilian manufacturers collected from 2010 to 2017. Results indicate that KIBS deepening on its own does not bring productivity benefits. Manufacturers may collect positive gains if they are endowed with high levels of absorptive capacity.

The effect of lean manufacturing practices on employees’ well-being mediated by job characteristics

PurposeBased on the principles of positive psychology, this study aims to investigate the mediating role of job characteristics (task, knowledge, social and work context) in the connection between lean manufacturing (LM) practices and employee well-being.Design/methodology/approachEmployee well-being, encompassing job satisfaction, organizational affective commitment and work involvement, is conceptualized as a second-order construct. Using a proposed model, an online survey was administered to 520 participants across 23 operational sectors categories of the Brazilian manufacturing industry. The data is processed using structural equation analysis.FindingsThe research shows that the relationship between LM practices and employee well-being is partially mediated through three out of the four work characteristics (task, knowledge and social). In addition, LM exerts a direct and significant influence on employee well-being.Practical implicationsThis study contributes to practical insights by encouraging industrial managers to refine their managerial work design. It highlights the importance of appropriately dimensioning tasks, nurturing social skills to enhance interactions and task execution and optimizing physical facilities to counteract potential initial-stage work intensification during LM implementation.Originality/valuePrevious research about organizational behavior extensively examines happiness at work, focusing on constructs such as well-being, satisfaction, commitment, engagement and motivation, but there is a lack of studies assessing employee well-being in the lean context, particularly from a positive perspective.

The impact of potential and realized absorptive capacity on open innovation: the moderating role of knowledge-oriented leadership

PurposeThis study aims to analyze the effects of the components of absorptive capacity (ACAP) – potential absorptive capacity (PACAP) and realized absorptive capacity (RACAP) on inbound and outbound open innovation (OI). In addition, this study investigates the moderating role that knowledge-oriented leadership (KOL) plays in the relationship between ACAP and OI.Design/methodology/approachThis research adopts a quantitative approach, using structural equation modeling, in a sample of 218 companies in the Brazilian manufacturing sector, using a random sampling technique and self-administered questionnaire.FindingsThe results indicate that while PACAP positively influences inbound and outbound OI, RACAP has a significant relationship only with outbound OI. In addition, KOL moderates the significant relationships between PACAP and RACAP and OI, indicating that the development of a leadership that fosters learning and interaction between employees and sectors of the organization impacts the innovation results of companies in the manufacturing sector.Practical implicationsThis study also shows that managers must have an active role in the construction of an organizational context that supports learning through initiatives that encourage the process of trial and error, teamwork and cooperation between employees.Originality/valueThis research advances previous studies by relating the two components of ACAP (PACAP and RACAP) with the two OI models (inbound and outbound), in addition to analyzing the moderating role that KOL plays in this relationship between ACAP and OI.

Front-line lean leader capacities, practices and effects on implementing tools: a survey of leaders in industrial companies

PurposeFront-line lean leadership is critical for implementing and sustaining lean production systems (LPS). The purpose of this paper is to analyze the relationships between front-line lean leader (FLL) capacities (cognitive, social, motivational, knowledge and experience), lean leader practices (developing people and supporting daily kaizen) and the degree of implementation of lean tools (pull system, involvement of employees and process control) in manufacturing companies.Design/methodology/approachA survey was conducted with FLLs from large Brazilian manufacturing companies. The survey collected 103 responses, 99 of which were validated. Data were analyzed using partial least squares structural equation modeling.FindingsThere was a positive, significant and direct relationship between FLL capacities, leadership practices and a degree of implementation of LPS tools on the shop floor. The validated model is a reference base for planning FLL capacities and practices that result in more effectively implementing LPS on the shop floor.Practical implicationsThe findings provide managers with a new perspective on the importance of the development and training of FLLs focusing on leadership capacities. As decisions about developing lean capabilities impact the application of Lean leadership practices and the use of lean tools, they are also related to day-to-day lean activities and improved operational results. Additionally, the proposed model can be used by managers as a basis to diagnose, develop and select lean leaders.Originality/valueThis study seeks to fill a theoretical gap of knowledge on front-line lean leadership as it jointly addresses and empirically analyzes the existing relationships between lean leadership capacities, encompassing the perspective of psychology, lean practices and tools on the shop floor.

Six sigma project generation and selection: an action research study

PurposeThe purpose of this paper is to test and develop a method for generation and selection of six sigma projects. This is done by testing the use of the generation and selection method for six sigma projects (GSM_SSP) in a Brazilian manufacturing industry with the participation of managers, aiming to gather the user’s perspective and improvement opportunities for the approach itself.Design/methodology/approachThe work adopts the action research (AR) approach once the researchers were busily involved in the training, implementation and use of the GSM_SSP. The intervention was performed in on a series of 15 workshops, with a group of managers, during six months.FindingsThe application of the eight steps of the GSM_SSP approach assisted the company’s management team to generate nine project candidates and also to select three six sigma projects. This study also finds and discusses barriers and lessons learned used to improve the GSM_SSP.Research limitations/implicationsThis study presents an example of how six sigma project generation and selection has been applied to a manufacturing industry by adapting AR to the process using the eight steps of GSM_SSP, demonstrating how the management team was involved. This study should be replicated in different companies because AR is limited in its generalization.Originality/valueTo the best of the authors’ knowledge, this study represents the first use of AR methodology in six sigma project selection. This study contributes a method that can generate and select six sigma projects. In doing so, the research offers a simple approach that can be used by managers. In addition, the steps of the approach before selection were explored.

Exports, productivity and capital intensity: Evidence for Brazilian firms

Engaging in export activities is a key factor influencing firm performance. This paper explores the export-productivity and export-capital intensity relationship using firm-level data from the Brazilian manufacturing industry over the period 2007–2014. The empirical strategy combines Propensity Score Matching (PSM) and Differences in Differences (DD) methods and explores the fact that firms enter the external market at different moments, generating a variation in the period and permanence in international trade. We find static and dynamic effects on labor productivity, total factor productivity, and capital intensity. Firms that start exports experience an average productivity growth of about 5% and a 2% decrease in capital intensity compared to non-exporting firms. The permanence in the activity magnifies these impacts. After three periods, the growth (reduction) in productivity (capital intensity) is around 10.5% (4.7%). We identify heterogeneous effects, leading to variations in magnitude across dimensions such as technological intensity, size, age, ex-ante levels of productivity and capital intensity, and intensive margin of trade. We also show that firms become more labor intensive by demanding more skilled workers.

Six Sigma, Big Data Analytics and performance: an empirical study of Brazilian manufacturing companies

The introduction of several digital technologies in manufacturing organizations has generated Big Data sets that can be explored using Big Data Analytics (BDA) to bring competitive advantages to organizations. Data exploration can be strengthened when analyzed within Six Sigma (SS) business improvement methodology domains, which may impact organizational performance. Using data from 171 SS experts from Brazilian manufacturing companies, this study aims to test the relationships among BDA capability, SS practices, Quality Performance (QP), and Business Performance (BP). Thus, this study empirically investigates these relationships in a developing country, since Big Data sets and the capability to use them can be highlighted by structured SS analysis structure and procedures, leading to better decision-making. Findings show that BDA is beneficial for SS practices, and both BDA and SS practices can positively impact perceived QP and BP in Brazilian manufacturing companies. Additionally, this study shows that not only BDA and SS reinforce each other, but when used together, they increase the positive impact on performance. These results can drive BDA investments by managers, and integrate efforts between SS and BDA.

Non-Parametric Estimation of Capacity Utilization Rates in Brazilian Manufacturing Industry

Non-Parametric Estimation of Capacity Utilization Rates in Brazilian Manufacturing Industry

Industry 4.0: An investigation of benefits and barriers with managers of Brazilian manufacturers adopters

This study aims to understand how Brazilian manufacturers’ managers perceive the benefits and barriers to adopting I4.0. The study collected data from 194 managers who implemented I4.0 solutions developed by technology suppliers supported by Finep Inovacred 4.0. Our results show that large and high-technology-intensity manufacturers considered managerial benefits more critical, while small-medium sized and medium-low technology-intensity manufacturers evaluate operational benefits as the most important. Data security and employee skills were evaluated as the main barriers by large and international manufacturers’ managers while high investments and government regulations were figured as the main barriers by small-medium sized and high-tech manufacturers’ managers.

Dynamics of labor productivity growth in the Brazilian manufacturing industry by size – 1997 to 2018

Resumo O artigo tem por objetivo analisar a dinâmica de evolução da produtividade da indústria de transformação brasileira considerando as faixas de tamanho das empresas. Para a análise, utilizou-se dados da Pesquisa Industrial Anual, por meio de uma tabulação especial. Empregou-se um horizonte amplo, do ano de 1997 a 2018, e utilizou-se o método shift-share para decompor o crescimento da produtividade do trabalho da indústria de transformação brasileira, sob o enfoque do tamanho das empresas, tanto entre os portes como intra portes. Os resultados demonstraram que as pequenas empresas apresentaram melhor dinâmica de mudança estrutural, tanto em relação aos outros portes como internamente. Com isso, verificou-se uma sinalização de melhora do desempenho produtivo nos menores portes, ou seja, os resultados indicam diminuição, embora sutil, da brecha produtiva por parte das pequenas e médias empresas.

Deindustrialization in a Marxian perspective: An empirical study of the Brazilian economy between 1995-2010

The article brings new indicators that reinforce the thesis that the Brazilian economy went through a process of deindustrialization. Based on the guiding principle of Marx's reproduction schemes, the instrument of inter-regional input-output analysis was used as empirical method. The output multipliers obtained from the Leontief and Ghosh models were used as indicators for measuring structural changes. Critical situations that can show whether there were structural changes in the sectors of the economy, considering both the local economic activity and its relationship with the world economy, are presented. The main results confirm the existence of a deindustrialization of the Brazilian economy. However, it was found that, in absolute and relative terms, the reduction in the capacity of the Brazilian manufacturing to drive the economy oscillated between moments of greater and lesser intensity. Furthermore, strong indications that the Brazilian primary sector is becoming an enclave were found.

Influence of cooperation networks on the relation between dynamic innovation capabilities and innovative performance

The present paper analyzes the influence of cooperation networks on the relation between dynamic innovation capabilities and innovative performance. Interviewing 258 Brazilian manufacturing organizations, and using Structural Equation Modeling through SmartPLS software, the results show that the dynamic capabilities of products and organizational significantly influences product and process innovation performance. Process dynamic innovation capabilities only influence innovation performance in process efficiency. Regarding the performance of organizations in cooperation networks, this favors companies to obtain results in process innovation, as well as influences positively and significantly in the development of all dynamic innovation capabilities observed in this study. This work contributes to increase the knowledge about the influence of cooperation networks on the dynamic innovation capabilities and innovative performance of companies. The results are of relevance to organizations and managers, who can use this information to reflect on organizational practices and management attitudes, in order to assist in the development of organizational strategies and decision making.

Collaborations for Digital Transformation: Case Studies of Industry 4.0 in Brazil

In today&#x0027;s digital age, many managers need to find new ways to manage collaborations where complementary partners co-create digital solutions. Collaborations with partners are at the center of digital projects, but managing these collaborations is challenging. This article objective is to investigate how research and development collaborations with scientific and business partners contribute to digital transformation. This has been achieved through an empirical investigation of three Brazilian manufacturers that are already on their journey toward digitalization. The research design involves multiple case studies and qualitative analysis, through data collection by interviews and questionnaires with participants from the tactical and strategic level followed by content analysis as well as nonparticipant observations. The findings indicate that the companies are at the early stage of building a digital ecosystem. However, they have already secured benefits from pursuing open innovation practices in the form of competitive advantage in operational processes. The results indicate that business success depends more on how (disruptive) technologies are developed and used by engaged people to add value to the enterprise, rather than simply adopting new technologies by themselves. Manufacturers need to act now to reshape their mindset, operational processes, and business models, respectively, enabling the understanding that: 1) organizational ecosystems are becoming more open and collaborative; 2) the value of data capture and analysis can be developed and used for data-driven learning, preventive and predictive capabilities, supporting decision-making; 3) customers' preferences need to be internalized to deliver customized experiences.

Exporting, Wage Profiles, and Human Capital: Evidence from Brazil

Abstract Export activity shapes workers' experience-wage profiles. Using employer-employee and customs data for Brazilian manufacturing, we document that workers' experience-wage profiles are steeper at exporters than at non-exporters and, among exporters, steeper at exporters shipping to high-income destinations. We develop and quantify a model featuring worker-firm wage bargaining, export-market entry by multi-worker firms, and human capital accumulation by workers to interpret the data. Human capital growth can explain one-half of the differences in wage profiles between exporters and non-exporters. We show that increased human capital per worker can account for one-half of the overall gains in real income from trade openness.

The spatial scope of agglomeration economies in Brazil

AbstractThis paper provides evidence about location and colocation patterns of manufacturing entrepreneurship and spatial scope of agglomeration economies in the context of a developing country. Using microgeographic data for all Brazilian manufacturing activities and distance‐based measures, we find clear patterns of colocalization between entrants and existing establishments, and that these patterns occur mainly at short distances. For activities presenting colocalization between entrants and existing establishments, our results also indicate that a greater number of incumbent establishments in a given location positively affects the number of entrant establishments that decide to locate there, an effect that attenuates rapidly with distance (generally disappearing after 5 km). This pattern of attenuation is robust to both the inclusion of a comprehensive set of controls for observable and unobservable local characteristics and the use of instrumental variables to address remaining endogeneity concerns.

Return on investing in innovative activities: the brazilian manufacturing industry

Objective of the study: This study analyses the relationship between innovation investment and the number of firms that innovate in various sectors of the Brazilian manufacturing industry.Methodology/approach: The estimated multiple linear regression model with panel data based on triennial investments covering 1998–2017 was considered.Originality/Relevance: This study indicates that investment in RD, both internal and external, does not influence the number of companies that have implemented certain types of innovation.Main results: Investment in training and machinery/equipment acquisition showed a positive and significant relationship with the number of companies implementing some type of innovation in the analyzed sector.Theoretical/methodological contributions: These findings contribute to better management of resources spent on innovation activities while filling a theoretical gap in the impacts of different innovative activities, considering the Brazilian manufacturing industry.Social/management contributions: The return on innovation investment is uncertain in the organizational context. Understanding the return on investment in innovation activities contributes to decision-making regarding resource allocation, especially in organizations with financial constraints.

Balancing exploration and exploitation across boundaries: Evidence from new product development

Exploration and exploitation have opposite natures; therefore, balancing the two presents a key challenge for firms. Recent studies have argued that firms can combine exploration (exploitation) capabilities with exploitation (exploration) partnerships to surmount this obstacle. However, little is known about how accumulated capabilities for exploring and exploiting activities shape the ways in which firms select partnerships. We examine this question by leveraging a unique data set on new product development in the Brazilian manufacturing sector that has 19,081 observations over a 14-year span. Contrary to the expectation of complementarity, in which the greater capability of one type (e.g., exploitation) is associated with selecting a partnership of another type (e.g., exploration), our findings suggest that increases in capabilities of any type are associated with exploration partnerships. We provide alternative explanations for our findings, highlight implications for theory and practice, and discuss potential avenues for future research.JEL CLASSIFICATION: O31, M13, L14

From boom to gloom: Brazilian labour productivity in manufacturing relative to the United States, 1912–2019

AbstractWhereas manufacturing seems to hold the key to modern economic growth, the role of manufacturing in economy‐wide convergence across countries is debatable. One strand of scholarship argues that productivity levels in manufacturing tend to remain stable across countries, and that economy‐wide convergence takes place through structural transformations. Another strand maintains that productivity levels of less‐developed countries tend to approach those of developed countries unconditionally, and that deindustrialization thwarts economy‐wide convergence. We examine productivity in Brazilian manufacturing relative to the United States, 1912–2019. The result shows dramatic swings in the Brazilian/US productivity ratio, increasing in the decades following the Second World War, peaking in the late 1970s at impressively high levels, and declining precipitously thereafter. This sluggish performance of Brazilian manufacturing since the peak in the late 1970s has probably hindered income convergence with richer countries.