International Manufacturing Strategy Survey Research Articles

Proactive and Reactive Approaches towards Sustainable Practices in Manufacturing Companies: Emerging Economies Perspective

This study aims to analyse the two competing conceptual models driving the relationships of external pressure, sustainable practices, and sustainability performance. The understanding of such relationships is important in enabling manufacturers to strategically manage external pressure and engage in sustainable transition. Using a sample of 202 plants from the Sixth International Manufacturing Strategy Survey (IMSS-VI), this research tests two hypotheses: (1) the role of sustainable practices in mediating the relationship between external pressure and environmental and social performance, and (2) the role of external pressure in moderating the link between sustainable practices and environmental and social performance. These hypotheses are tested through the hierarchical regression analysis and bootstrapping method. The findings show the mediating role of sustainable practices in the relationship between external pressure and environmental performance, suggesting a reactive approach to environmentally oriented sustainable practices adoption. Furthermore, the results show the moderating role of external pressure on the relationship between sustainable practices and social performance, indicating that plants take a proactive approach to the adoption of socially oriented sustainable practices for improving social performance of the buying firms, whereas there is no moderating effect for environmental performance. Studies addressing the relationships between external pressure, sustainable practices, and sustainability performance in the context of emerging economies (China and India) are limited, so there is a need to address these relationships in this context for generalisation. Studies that address the sustainability outcomes consisting of both environmental and social performance of the reactive and proactive approaches to sustainability initiatives in emerging economies are lacking. This research adds to the literature by investigating the sustainability outcomes of reactive and proactive methods in two emerging countries, China and India. The distinction between reactive and proactive approaches has important implications for sustainability performance in the context of emerging economies, as the rapid growth of these economies raises a number of sustainability issues.

Manufacturing planning and control driven supply chain risk management: A dynamic capability perspective

This paper builds on the dynamic capability view to theorize the role of manufacturing planning and control (MPC) activities and supply chain risk management (SCRM) capabilities towards the firm's operational performance. The study hypothesize that companies enhance MPC activities to respond to supply chain uncertainty (SCU) and enable SCRM that positively impacts operational performance. Data from 356 manufacturing companies in developing countries and regions, drawn from the sixth version of the International Manufacturing Strategy Survey is used to examine the hypothesized model empirically. The findings indicate that the MPC activities effectively respond to SCU and act as an enabler of preventive and reactive SCRM. Furthermore, the paper finds that MPC activities drive operational performance through effective SCRM. Also, the findings suggest that preventive risk management practices impact operational performance only through reactive risk management. Finally, the paper enriches the literature by identifying and discussing the theoretical and managerial significance of the role of MPC activities in the association between SCU, risk management practices, and firm performance.

Lean, sustainability and the triple bottom line performance: a systems perspective-based empirical examination

PurposeThis study draws on the systems perspective to study the individual and combined interaction effect of lean management (LM) and sustainability management (SM) on the organization's triple bottom line (TBL) performance.Design/methodology/approachThe study employs structural equation modeling to test the proposed hypotheses using data from the sixth version of the International Manufacturing Strategy Survey (IMSS VI).FindingsThe study finds that LM is positively related to all dimensions of the TBL performance. In contrast, SM is positively related to social and environmental performance and negatively related to economic performance. Finally, by finding that the interaction between LM and (SM) is positive for social and environmental performance, this study not only confirms that LM is an enabler for sustainability, but it also supports that the two paradigms are mutually compatible and reinforcing.Practical implicationsThe findings imply that practitioners pursuing both LM and SM should leverage their mutual positive effects and balance the unintended effects of implementing isolated bundles by implementing them together as a complete socio-technical system. Their combined impact on the TBL performance will outweigh the sum of their individual effects in the case of isolated implementations.Originality/valueIn contrast with the extant literature, this study proposes that LM and SM make parts of one system as opposed to one correlated with the other or having a positive causal effect on the other. Taking an integrated systems approach, the study empirically verifies the “mutual compatibility” of the lean and sustainability paradigms argument, with regard to their effect on the TBL performance.

Impact of a country’s logistical capabilities on supply chain risk

PurposeThis paper aims to examine the relationship between environmental factors, risk perception and decision-making in risk management. Specifically, using attribution theory, the authors study the influence of macro-level logistical capabilities of a host country on a firm’s actual and perceived supply chain risk, and examine if this country-level factor and the firm level perception of risk affect a firm’s decision-making in risk management.Design/methodology/approachThis study uses a combination of primary data from 932 manufacturing firms from 22 countries and secondary data from the logistics performance index (LPI), and empirically tests the conceptual framework using partial least squares structural equation modeling.FindingsKey results reveal that a country’s logistical capabilities, measured using LPI, have a significant impact on managers’ risk perception. Firms located in countries with high LPI perceive lower risk in their supply chain both in the upstream and downstream, and therefore do not invest much in external integration, compared to firms in low LPI countries, and hence are exposed to high risk.Originality/valueThis is one of the first empirical studies linking a country’s logistical capabilities with supply chain risk perceptions, objective supply chain risk and supply chain risk management efforts of a firm using the International Manufacturing Strategy Survey database.

Enablers of supply chain integration: a technology-organization-environment view

PurposeThe purpose of this study is to empirically explore the effects and interaction effect of human resources and digital manufacturing technologies (DMTs) on supply chain integration (SCI) and how their roles are influenced by competition.Design/methodology/approachDrawing on the technology-organization-environment (TOE) framework, this study builds and tests a holistic model based on the International Manufacturing Strategy Survey (IMSS) project database.FindingsThe results show that human resources and DMTs have significant positive effects on three dimensions of SCI. Competition positively moderates the effects of human resources on customer integrations, negatively moderates the effects of human resource on internal integration, but does not moderate the effects of human resources on supplier integration. Besides, the moderating effect of competition has not been found in the relationships between DMTs and three SCI dimensions.Originality/valueBy investigating the effects of human resources and DMTs on SCI practices in the context of competition, this study contributes to the literature on SCI, DMTs and the TOE framework as well as offers practical insights that help manufacturing firms to promote SCI more effectively and efficiently.

Manufacturers’ tailored responses to powerful supply chain partners

PurposeThis study aims to investigate how relatively weaker manufacturers respond to the dominance of stronger suppliers and/or customers. The study also analyzes how the competitive intensity perceived by manufacturers moderates their responses to powerful chain partners.Design/methodology/approachUsing hierarchical regression, data from 1,417 manufacturing companies sampled from the fifth and sixth versions of the International Manufacturing Strategy Survey were analyzed.FindingsThis study found that relatively weaker manufacturers often adopt exploration strategies to countervail the dominance of suppliers and adopt exploitation strategies to deal with more powerful customers. In dealing with both dominant suppliers and customers, relatively weaker manufacturers are prone to adopt exploration and exploitation strategies simultaneously and hence become ambidextrous. Furthermore, the link between dominance in supply chains and the exploration (exploitation) strategy is strengthened (weakened) as market competition perceived by manufacturers intensifies.Originality/valueThe contribution of this paper is multi-folds. First, this paper develops and test a novel theoretical model on how relatively weaker manufacturers create tailored strategies to defend their positions in the supply chain. Second, it integrates resource dependence theory and organizational learning theory to propose that relatively weaker manufacturers could use a unique configuration of exploration and exploitation strategies to counteract the dominance of their suppliers and customers. Third, it investigates supply chain power by considering the manufacturers’ upstream and downstream powerful partners together, rather than individually and fourth, it reveals that relationships linking supply chain power to manufacturers’ tailored strategies are contingent on competitive intensity.

The impact of country of origin and operation on sustainability practices and performance

This study aims to explore and test two hypotheses on the effects of country of origin and operation on the relationships between 1) stakeholder pressures and the adoption of internal and external sustainability practices, and 2) sustainability practices and environmental as well as social dimensions of sustainability performance. These hypotheses are tested through the Hierarchical Linear Model (HLM) using data from the 6th International Manufacturing Strategy Survey (IMSS-VI) conducted in manufacturing assembly plants in 22 countries around the globe. The results show that country of origin and operation do not moderate the relationship between stakeholder pressures and the adoption of sustainability practices, while they have a moderating effect on the relationship between sustainability practices and performance. Studies that investigate the associations between stakeholder pressures, the adoption of sustainability practices and performance are relatively scarce and not quite conclusive. Several scholars have called for studies on the role of contextual variables. The country context in which a firm is embedded is important for understanding firms’ behavior, yet very often neglected. This paper aims to reduce this void. This research also provides managerial insight into the effects of sustainability practices on sustainability performance.

The impact of corporate social responsibility practices on sustainability performance in manufacturing networks: the moderating effect of interplant coordination

This paper investigates the relationship between corporate social responsibility (CSR) practices and sustainability performance in the context of manufacturing networks and explores the moderating effect of interplant coordination on this relationship. It is developed theoretically based on the perspective of information processing theory and empirically using the data from the sixth round of the International Manufacturing Strategy Survey. The results not only demonstrate the significant positive effect of CSR practices on sustainability performance in the context of manufacturing networks, but also suggest that the age and the social orientation of plants can have impacts on sustainability performance. Furthermore, the results reveal that interplant coordination plays a role in moderating the relationship between CSR practices and the social dimension of sustainability performance, but not on the environmental dimension. This paper contributes to the existing literature related to both sustainable and global operations by extending the current discussions on the relationship between CSR practices and sustainability performance to a new context and elaborating the role of a different kind of coordination in moderating this relationship. It also provides suggestions to managers of plants and manufacturing networks, for guiding them to make good use of interplant coordination and achieve better sustainability performance.

Does plant role moderate relationship between internal manufacturing network integration, external supply chain integration, operational performance in manufacturing network?

PurposeThis paper aims to investigate the moderating effects of the role a plant plays in a manufacturing network on the relationships between its level of integration with other plants in the same manufacturing network (referred as “internal manufacturing network integration” in this paper), its interactions with suppliers/customers (referred as “external supply chain integration” in this paper), and its operational performance.Design/methodology/approachThis paper is based on the data from the sixth version of International Manufacturing Strategy Survey (IMSS VI). Specifically, this paper uses a subset of the IMSS VI data set from the 606 plants that identified themselves as one of the plants in a manufacturing network.FindingsThe results demonstrate plant role has a moderating effect on the relationship between internal manufacturing network integration and external supply chain integration, but not on the relationship between external supply chain integration and operational performance. Our research also highlights that plant role moderates the mediating effect of external supply chain integration on the relationship between internal manufacturing network integration and operational performance. More importantly, it indicates that if a plant wants to significantly increase its operational performance, it will have to strengthen its linkages with supply chain partners, no matter which role it plays in manufacturing network.Originality/valueThis paper supplements the existing research by developing further understandings on the relationship between internal manufacturing network integration, external supply chain integration and operational performance. Specifically, it examines the influence of plant role on such relationship and reveals the essence about in what context (in terms of plant characteristics) internal manufacturing network integration influences the operational performance of a plant in a manufacturing network through external supply chain integration.

Aspirations and environmental performance feedback: a behavioral perspective for green supply chain management

PurposeThis study investigates the relationships between environmental performance feedback and green supply chain management (GSCM). It explores how environmental performance above or below aspirations affects the implementation of GSCM practices (specifically sustainable production [SP] and sustainable sourcing [SS]) through the lens of the behavioral theory of the firm (BTOF), which has received scant attention in the operations management literature.Design/methodology/approachThe study used data from the sixth round of the International Manufacturing Strategy Survey (IMSS). It employed hierarchical linear regression to test the proposed hypotheses. Moreover, the study tested an alternate model to rule out the possible role of financial performance aspirations in explaining the implementation of SP and SS.FindingsThe results indicate that organizations determine their efforts put into the two GSCM practices according to environmental performance feedback: the greater the aspiration–environmental performance discrepancy, the stronger the efforts put into implementing GSCM practices.Originality/valueThis study contributes to the GSCM literature by revealing the impact of environmental performance aspirations on the implementation of GSCM practices through the lens of the BTOF. It also extends the BTOF by applying it in the GSCM context and indicating that performance feedback is based on environmental performance instead of financial performance in this specific context.

Manufacturing network integration and culture: an institution-based view

PurposeIn pursuit of increased competitiveness, global manufacturers often seek tighter integration among the plants in their production networks. However, this is a challenging task because plants are dispersed across multiple institutional environments. Although the literature provides abundant evidence of how formal institutional environments affect the integration among plants, little is known about the role of the informal institutional environment – such as culture. In this study, the authors investigate the relationship between different dimensions of culture and manufacturing network integration.Design/methodology/approachThe authors combine survey data from the most recent International Manufacturing Strategy Survey with secondary data that capture cultural dimensions. They then analyze the responses from 581 assembly plants in 21 countries obtained from the survey using a multilevel regression model.FindingsThe study results show that plants located in masculine and long-term-oriented national cultures are associated with lower levels of integration with other plants. The results for the other four Hofstede dimensions of national culture were not statistically significant. At the level of organizational culture, the authors found that a collaborative plant environment positively relates to higher levels of network integration. They did not find statistically significant evidence for the relationship between cultural or geographical distance and network integration.Practical implicationsThis research provides managers with practical insights into the types and combinations of cultural environments that affect the integration of plants in a global network. This knowledge is useful for informing effective integration strategies and tactics.OriginalityThe authors provide new, empirical evidence of the relation between the informal institutional environments of a plant and its integration in a manufacturing network. Drawing on an institution-based view, they contribute to the literature on manufacturing networks by discussing and testing empirically the role of national and organizational culture in network integration.

Servitization and supply chain integration: An empirical analysis

Supply chain literature highlights the importance of the role of supply chain partners in a manufacturer's journey towards servitization. However, there is scarce empirical research seeking to explain supply chain level factors that enable servitization. Using resource dependence theory, we argue that servitization orientation encourages organizations to enhance supplier, internal, and customer integration (three dimensions of supply chain integration) which in turn enhance servitization (basic and advanced service provision) ultimately affecting firm performance. Covariance-based structural equation modelling is applied to test the hypotheses using data of 307 manufacturing companies obtained from the sixth version of International Manufacturing Strategy Survey. Empirical examination provides evidence that servitization oriented firms enhance internal integration and the integration with key suppliers and customers. However, there is an uneven relationship between firm's integrative practices with suppliers and customers and the provision of basic and advanced services such that enhanced provision of basic services requires more supplier integration while enhanced provision of advanced services requires more customer integration. Also, the performance implications of different types of service provision are found to be unequal. These findings suggest that servitization oriented firms need to improve a specific dimension of supply chain integration to enhance a particular type of service provision. The paper makes an initial attempt to empirically explore the enabling role of supply chain integration in facilitating servitization.

Implementation of digital manufacturing technologies: Antecedents and consequences

The use of digital manufacturing technologies (DMTs) is changing the face of the manufacturing landscape and enhancing the competitiveness of firms. However, its implementation is still a relatively unexplored phenomenon and demands attention. The purpose of this study is to determine the role played by technological context, organizational context, and environmental context of firms in the implementation of the DMTs. A hypothesized model is proposed and tested using survey-based data from the International Manufacturing Strategy Survey VI comprising 931 firms across developed and developing countries. The proposed research model gains support from the technology–organization–environment framework and the combinatorial technology evolution theory, which together provide a holistic understanding of the technology implementation process in terms of its enablers and performance outcomes. We find that although the organizational context and environmental context impact DMTs' implementation, these impacts are mediated through the technological context of the firm. Moreover, the implementation of these technologies has a significant impact on firm performance in terms of flexibility, design, delivery, and quality performance. Contributing to the empirical research gap in the domain of DMTs’ implementation, this study also generates insights for practitioners about the complementarity of the technological, organizational, and environmental factors that together enable the implementation of DMTs and enhance firm performance.

Supply chain risk management and operational performance: The enabling role of supply chain integration

The academic community and practitioners widely recognize the significance of risk management and integrative practices in supply chains to deal with complexity and uncertainties faced. Firms strive to manage risk, handle unexpected disruptions and improve performance in ever changing uncertain business environments. This paper builds upon the information processing view of risk management and explores the association between supply chain integration (SCI) and supply chain risk management (SCRM) to improve operational performance. Subsequently, the mediating role played by SCRM between SCI and firms’ operational performance is examined. In this paper, covariance-based structural equation modeling is applied to test the developed hypotheses using data of 931 manufacturing companies obtained from the sixth version of International Manufacturing Strategy Survey (IMSS VI). The findings of the study suggest that internal, supplier and customer integration positively effects SCRM whereas the impact of internal integration is also partially mediated by supplier and customer integration. Additionally, the results present that SCRM partially mediates the relationship between internal integration and operational performance and fully mediates the association between supplier and customer integration and operational performance. This paper contributes to research by proposing and empirically testing a holistic framework demonstrating the effects of SCI on SCRM, and consequently on performance outcomes to develop theoretical and managerial implications.

Pressure or premium: what works best where? Antecedents and outcomes of sustainable manufacturing practices

In this study, we empirically test the antecedents and consequences of sustainable manufacturing practices across emerging as well as developed countries such as India, China and OECD. We use data from the sixth edition of International Manufacturing Strategy Survey (IMSS) and partial least squares structural equation modelling (PLS-SEM) to test our conjectures. Our findings suggest that while customer willingness to pay has a significant impact on sustainable manufacturing practices everywhere, stakeholder pressure is able to influence their adoption in OECD and India, but not in China. We also find that firms that are high on sustainable manufacturing practices not only reap sustainability benefits, but also derive cost reduction and quality improvement in many contexts. However, this relationship between sustainability efforts and operational performance is mediated through sustainability performance.

Risk management of manufacturing multinational corporations: the moderating effects of international asset dispersion and supply chain integration

PurposeThe purpose of this study is to investigate the contingencies of supply chain risk management (SCRM) in manufacturing multinational corporations (MNCs) by exploring the moderating role of international asset dispersion in the performance effect of SCRM, as well as the counteraction effect of supply chain integration (SCI).Design/methodology/approachMulti-country survey data from a sample of 378 responses collected by the sixth round International Manufacturing Strategy Survey were analyzed. Hierarchical regression analysis was conducted to test the proposed hypotheses.FindingsThe results demonstrate that SCRM improves the operational effectiveness of manufacturing MNCs but this performance effect is attenuated by international asset dispersion. Nevertheless, external integration can counteract the negative effect of international asset dispersion and ensure the efficacy of SCRM practices.Practical implicationsThe results of this study provide suggestions for supply chain managers of manufacturing MNCs to better conduct SCRM practices under the condition of dispersed international assets. Besides, supply chain managers can leverage external integration to ensure the efficacy of SCRM practices.Originality/valueAlthough there are plenty of studies on the relationship between SCRM and operational performance, prior findings are inconsistent. This study sheds light on the SCRM-operational performance relationship by considering how a manufacturing MNC’s international asset dispersion can influence the efficacy of SCRM practices and how SCI can attenuate the negative effect of international asset dispersion.

The moderating role of temporary work on the performance of lean manufacturing systems

Companies are extensively employing lean manufacturing practices and temporary work, which at face value are in stark contrast to each other. While lean manufacturing emphasises the value of workers, temporary work refers to precarious work arrangements that, based on social exchange theory, may harm workers’ commitment. The objective of this paper is to unveil the role of temporary work on the lean manufacturing – operational performance (i.e. cost, quality, delivery, flexibility) relationship. To answer our research question and test our hypotheses we utilise cross-country data collected through the sixth iteration of the International Manufacturing Strategy Survey and conduct multilevel regression analysis. Our results indicate that while lean manufacturing improves operational performance, the use of temporary work positively influences the relationship between lean manufacturing and mix and volume flexibility performance.

The relationship between servitization and product customization strategies

Purpose The purpose of this paper is to examine the relationship between product customization and servitization strategies, specifically the relationship between product customization strategy intensity and degree of servitization (offering of basic and/or advanced services) and the moderating role of product customization strategy alignment on that relationship. Design/methodology/approach The authors develop and test hypotheses through partial least squares path modeling to analyze data from the Sixth International Manufacturing Strategy Survey, involving 931 manufacturers in 22 countries. Findings The results indicate that customization strategy intensity is positively associated with the offering of basic and advanced services; these relationships are not moderated by customization strategy alignment. Practical implications Manufacturers pursuing product customization strategies may be especially well positioned to servitize, even those with misalignment in strategic choices. Paradoxically, while manufacturers of standard products might look at servitization as an attractive strategy to differentiate their value proposition, they appear to be less servitized than manufacturers pursuing product customization. Originality/value This is one of the first studies to examine how manufacturing strategy choices (intensity and alignment) influence the adoption of servitization strategies. The study introduces manufacturing strategy as a contingency factor that influences the adoption of servitization, answering calls for the study of servitization contingencies.

Design-for-variety and operational performance

Purpose Design-for-variety (DFV) practices aim to help manufacturers to manage and mitigate the negative impact of product variety on operational performance. Theory suggests that designing products according to DFV practices increases operational performance by allowing more efficient processing of products, capitalizing on commonalities and by supporting cross-functional and cross-boundary coordination through simplifying product designs. The purpose of this paper is to investigate the latter proposition, and especially the mediating role of internal, supplier and customer integration in the relationship between DFV and operational performance. Design/methodology/approach Data collected in 2014 among 702 manufacturers from 22 countries as part of the 6th International Manufacturing Strategy Survey are analyzed through mediated regression analysis using SPSS 25, AMOS and PROCESS v3.1 software. Findings DFV affects cost/speed, quality, delivery, flexibility and service performance positively. Except for the role of customer integration in the DFV-cost/speed relationship, internal, supplier and customer integration partially mediate the relationship between DFV and operational performance. Practical implications In addition to allowing a more efficient processing of products, the positive effect of DFV on performance is also explained by the fact that DFV practices support cross-functional and supply chain integration. These practices allow manufacturers to create a set of design rules easily understood and communicated within and across organizational boundaries. Originality/value While previous research tends to consider one DFV practice and limited sets of integration mechanisms and performance dimensions, this paper consolidates the most common DFV practices into one construct and encompasses the three forms of integration and six performance dimensions dominating the DFV literature.

FACTORS FOR IMPROVING AND MODERATING A SUCCESSFUL SUPPLY CHAIN

The purpose of this study is to explore whether the ability to adjust and redistribute resources has a positive effect on improving a supply chain’s competitive capabilities. In addition, we also verify whether information transparency is an antecedent to improving the ability to adjust and redistribute resources. Finally, this study explores the moderating effects of investment cost controls and absolute dominance on the relationship between information transparency and the ability to adjust and redistribute resources. A partial least squares (PLS) analysis was the main method used in this study. The empirical data were obtained from the International Manufacturing Strategy Survey (IMSS). Regarding the research results, in addition to the relationships among information transparency, resource adjustment and redistribution ability, and supply chain competitive capabilities, our research results demonstrated that overemphasizing investment cost controls and absolute dominance will moderate the relationship between information transparency and resource adjustment and redistribution ability and further lead to weak competitive capabilities.