International Manufacturing Strategy Survey Research Articles

Differences in outsourcing strategies between firms in emerging and in developed markets

PurposeThe vast majority of literature relating to operations management originates from studies in developed markets. Emerging markets are increasingly important in global business. With this in mind, the purpose of this paper is to analyze differences in outsourcing strategies between manufacturing firms from emerging markets and from developed markets.Design/methodology/approachThe paper is based on statistical analyses of a large data set of manufacturing firms obtained from the International Manufacturing Strategy Survey (IMSS).FindingsThe findings suggest that companies that outsource internationally focus on achieving cost benefits, while companies that outsource domestically focus on achieving capacity flexibility. In addition, the reasons to outsource were found to be independent of the location of firms in both emerging and developed markets. However, within the group of firms from emerging markets, strategies seem to differ according to whether firms are domestically owned or are subsidiaries of companies from developed markets.Practical implicationsThe decisions of firms to outsource do not differ much whether the firms are located in developed‐ or in emerging‐market economies. Firms outsource domestically when they want to increase their capacity flexibility; they outsource internationally when looking for cost advantages.Originality/valueThe value of the paper is that it illuminates an important contemporary phenomenon based on analyses on data from a large‐scale international survey encompassing firms both in developed and in emerging markets.

Fit of Strategies Based on Product-Process Matrix

We perfect Product-Process Matrix theory of Hayes and Wheelwright and propose a more generalized theoretical strategic model. In this paper, the data from International Manufacturing Strategy Survey in 2009 is used to examine the new model by hierarchical regression analysis. The results show that, different matches between flexible production capacity (manufacturing strategy), speed of product update and product customization (market strategy) will lead different business performance. The results improve the Product-Process Matrix theory, and provide theoretical and practical guidance to manufacturing enterprises for strategies choice.

Building procurement capability for firm performance: a service‐dominant logic view

PurposeThe purpose of this study is to explore four integrative supply chain practices – customer information technology (IT) integration, supplier IT integration, customer collaboration, and supplier collaboration – using a service‐dominant logic (SDL) lens to inform their relationships with procurement capability and ultimately firm performance. The study goes on to examine how firms with high and low procurement capability differ in their use of these practices, thus informing curiosity regarding “best practices”.Design/methodology/approachData were collected from 711 firms in 23 countries during the International Manufacturing Strategy Survey (IMSS). Exploratory factor analysis established simple factor structure and construct validity. Stepwise regression was employed to analyze relationships among customer collaboration, supplier collaboration, customer IT integration, supplier IT integration, procurement capability, and firm performance. T‐tests examined differences between the practices employed by firms with high and low procurement capability.FindingsFindings reveal positive relationships among customer collaboration, supplier collaboration, customer IT integration, and procurement capability. Supplier IT integration is not found to be significantly related to procurement capability. Procurement capability is in turn found to be positively associated with firm performance. All four variables emerge as best practices of firm's demonstrating high procurement capability.Originality/valueThis study provides a rare empirical investigation, and rich insights, into SDL for value co‐creation in supply chain management by examining an international sample of manufacturers. This study contributes to the extant understanding of supply chain collaboration and integration by unpacking key practices in the context of a firm's procurement capability. Lastly, “best practices” are provided which should be of great interest for practitioners from around the globe.

The effect of global supply chain configuration on the relationship between supply chain improvement programs and performance

This paper investigates the moderating effect of global supply chain (SC) configurations on the relationship between SC improvement programs and operational performance improvement, based on data collected from the fifth edition of the International Manufacturing Strategy Survey (IMSS). Configurations are defined through the level of sourcing, manufacturing and sales of a plant outside the continent where it is located. Four configurations emerge: Locals, Shoppers, Barons and Globals. Results show that global SC configurations do have a moderating effect. Some configurations yield higher returns on their investments in SC than others. Moreover, Locals can achieve further improvements by adopting distribution strategy and supplier development programs. However, Barons experience negative effects from investing in coordination with customers and suppliers.

Research of Manufacturing Strategic Decision Based on the Competitive Strategic Situation Cognition

This paper studies manufacturing strategic based on the market orientation of strategy. This paper proposes the decisions of manufacturing strategy of companies are based on the managerial cognition of the competitive strategic situation. The respective and interaction effects of the two key factors, the trend and the existing competitive priority, on manufacturing strategic decisions. Empirical research was carry out based on the International Manufacturing Strategy Survey 2005. Research shows that the manufacturing efficiency, manufacturing input and manufacturing service are affected by the two key factors jointly.

The moderating effect of service capability on the relationship between service delivery and business performance of manufacturing companies

Little empirical research had testified the role and mechanism of servitization which had been one of the most important sources of competitive advantages of manufacturing companies. This paper aimed to reveal the relationship between manufacturing servitization and business performance. Servitization was figured by service delivery and service capability. 719 samples of 20 countries in 2009 international manufacturing strategy survey (IMSS) were employed to investigate the moderating effect of service capability on the relationship between service delivery and business performance through the hierarchical regression analysis to reveal how servitization influences the business performance. The findings suggested that with better service capability, the manufacturers will improve their business performance by extension of service business; conversely, if the manufacturer is not capable of delivering services, more service offerings will erode the business performance. Key words: Manufacturing companies, servitization, service delivery, service capability, business performance, international manufacturing strategy survey (IMSS).

Sustainable operations: Their impact on the triple bottom line

Abstract Different firms have implemented environmental programmes (such as design to recycle, life cycle analysis or environmental certification) and social practices (such as programmes aimed to improve employees’ working conditions or projects to support the external community). This study aims to analyse the impact of these programmes on each dimension of the triple bottom line (environmental, social and economic performance). It extends the extant literature by (1) considering environmental and social initiatives in the same study, (2) analysing their impact on the three pillars of the triple bottom line, (3) comparing the impact of internal and external programmes, and (4) analysing sustainable operational projects at the plant level. The data used were obtained from the fifth (2009) round of the International Manufacturing Strategy Survey (IMSS) which includes responses from manufacturing plants within the assembly industry in 19 countries. Our findings suggest that internal environmental programmes have a positive impact on the three components of the triple bottom line, whereas internal social initiatives have a positive impact on only two components: Social and environmental performance. It seems that firms still need to achieve positive financial gains from these social programmes. Finally, regarding the external or supply chain initiatives, our results show that supply chain assessment has no impact on the triple bottom line, unlike supply chain collaboration which contributes to improve all three elements. Two important managerial contributions can be derived from this study: (1) Managers have to be aware of the possible negative effects (on the short term) of social practices on manufacturing costs, and (2) they need to implement collaborative practices with their supply chain partners, as assessment alone has been found not to have any impact on the triple bottom line.

Empirical Analysis of the Relationship between World Class Manufacturing Practises and Enterprise Performance: Comparing Developing Countries with Developed Countries

The application of World Class Manufacturing(WCM) practises is very important for manufacturing enterprises to improve their performance and achieve competitive advantages. This research use the data of International Manufacturing Strategy Survey(IMSS) in 2009 as samples to reveal the relationship between WCM practises and enterprise performance and to discover the effect of different countries on the above-mentioned relationship, based on hierarchy regression analysis method. The results show that WCM practises is positively related with enterprise performance, besides, the positive influence of SCM on enterprise performance in developing countries is greater than that in developed countries.

The impact of external market factors on the operational practices and performance of companies

The links between operational practices and performance are well studied in the literature, both theoretically and empirically. However, it is mostly internal factors that are inspected more closely as the basis of operational performance, even if the impact of external, environmental factors is often emphasized. Our research fills a part of this existing gap in the literature. We examine how two environmental factors, market dynamism and competition impact the use of some operational practices (such as quality improvement, product development, automation, etc.) and the resulting operations and business performance. The method of path analysis is used. Data were acquired through the International Manufacturing Strategy Survey, which was carried out in 2005 in 23 participating countries in so called “innovative” industries with a sample of 711 firms. Results show that both market dynamism and competition have a large impact on business performance, but the indirect effects, through operations practices are rather weak compared to direct ones. The most influential practices are from the area of process and control, and quality management.

A co-ordination theory approach to restructuring the supply chain: an empirical study from the focal company perspective

In the wake of the global financial crisis, a growing number of firms have begun to reassess their strategic goals and subsequently restructure their global supply chains. Since supply chain restructuring often leads to dramatic changes in the business paradigm, there is a need to examine whether or not it affects the way that firms co-ordinate their business activities and integrate product innovations across the supply chain. Nevertheless, little has been known about the antecedents of supply chain restructuring and the impact of supply chain restructuring on manufacturing practices. To fill the void in this line of research, we propose co-ordination theory that can explain causal links between supply chain restructuring and key strategic variables essential for the supply chain success from focal company perspectives. These strategic variables may include the extent of co-ordination with suppliers, the degree of information sharing with suppliers, and the level of organisational integration. Our empirical analysis, based on the International Manufacturing Strategy Survey IV, confirms the validity of co-ordination theory in that business initiatives intended for greater co-ordination and information sharing with suppliers turned out to be a major driving force behind supply chain restructuring, which facilitates organisational integration.

Successful business strategy practices in the supply chain

The purpose of this study is to examine alignment influences among business strategy, integration strategy generated from Advanced Manufacturing Technology (AMT) and e-business construction, as well as operational performance in the supply chain. This study is based on the global International Manufacturing Strategy Survey (IMSS) database; the data are explored using Structure Equation Modelling (SEM). Using structural equation modeling (SEM), this study confirmed alignment influences among business strategy, integration strategy generated from AMT and e-business construction, and operational performance. This paper tries to test alignment influences among business strategy, integration strategy, and operational performance. Based on this study’s empirical results, this paper provides a valuable framework for researchers and practitioners. Key words: Supply chain, business strategy, integration strategy, advanced manufacturing technology (AMT), e-business, performance.

Integrating Supply Chains: An Investigation of Collaborative Knowledge Transfers

This paper aims to empirically investigate the impact upon performance of explicit knowledge transfer in the integrated supply chain between a manufacturer and its external suppliers and customers. Literature derived hypotheses were evaluated using International Manufacturing Strategy Survey data from 338 companies. Valid and reliable scales were created via confirmatory factor analysis, and effects upon inventory performance tested via regression techniques. Whilst knowledge transfers from upstream and downstream directions were positively related to a manufacturer's performance, knowledge derived from customers was more powerful. Furthermore, integrated knowledge transfer - the combination of knowledge emanating from both suppliers and customers - had the strongest link to performance. The implications for practioners are that integrating knowledge across supply chains could be more far reaching than the exchange of assets, data and information usually considered in supply chain literature. Furthermore, the current generalized approach to managing external knowledge is inadequate. This study expands upon existing literature by including directional implications as to which knowledge inflows are most valuable. For academics, this paper supports and extends existing literature by considering the supplier-manufacturer-customer triad in unison. The focus goes beyond asset, data and information exchange towards the leveraging of external knowledge. Relevant perspectives and dimensions were adopted from the knowledge management stream in order to add conceptual depth. Several areas of knowledge-based supply chain research have been identified as potential opportunities for further investigation.

Quality management: a cross‐cultural perspective based on the GLOBE framework

PurposeThe purpose of this paper is to address the extent to which quality management is “culture‐specific”.Design/methodology/approachThe paper presents the results of a survey administered across 21 countries that seeks to examine quality priorities and practices by adopting the global leadership and organizational behaviour effectiveness (GLOBE) framework. Data were collected in 2006 as part of the fourth iteration of the International Manufacturing Strategy Survey. The methodology involved the use of a self‐administered questionnaire to director/head of operations/manufacturing in best practice firms within the sector of firms classified by ISIC codes (rev.3.1) Divisions 28‐35.FindingsFrom this study, it emerges that adopting the GLOBE framework provides an invaluable insight into understanding quality management across countries. In particular, the findings show that some national cultures are more conducive to the implementation of quality management than others.Practical implicationsThe analysis of the data leads this paper to endorse the idea that through an accumulation of scientific knowledge relevant to the applicability of quality management across national settings, managers can better understand how to transfer best quality management practices from one country to another.Originality/valueWhile some previous research portrays quality management as a comprehensive management paradigm with elements and relationships that transcend cultural and national boundaries, the current study provides evidence that the adoption of certain quality practices across different countries can follow distinctive patterns.

The impact of country culture on the adoption of new forms of work organization

PurposeThis paper aims at understanding the relationship between the adoption of new forms of work organizations (NFWOs) and measures of country impact, in terms of national culture and economic development.Design/methodology/approachThe adoption of NFWO practices is measured through data from the fourth edition of the International Manufacturing Strategy Survey, while Hofstede's measures are adopted for national culture, and gross national income (GNI) per capita is used as an economic development variable. Multivariate linear regression is applied to investigate relationships, using company size as a control variable. A cluster analysis is utilized to identify groups of countries with similar cultural characteristics and to highlight different patterns of adoption of NFWO practices.FindingsThe authors show that it is possible to explain different patterns in the adoption of NFWO practices when considering company size and cultural variables. GNI is instead only significant for some practices and does not always positively influence the adoption of NFWO. On the other hand, cultural variables are linked to all the practices, but there is no dominant dimension to explain higher or lower NFWO adoption.Research limitations/implicationsResults are limited because only Hofstede's cultural variables are used and manufacturing performance is not considered. Therefore, it is not possible to discriminate between more or less successful NFWO variations.Practical implicationsThis paper provides managers with insights on how to take into account cultural variables when transferring organizational models to different countries.Originality/valueThis paper contributes to previous studies showing the importance of including several contextual variables, country impact in particular, in the study of operations management.

The Empirical Study on Relationship between Design-Manufacturing Integration and Manufacturing Performance of Chinese Manufacturing Enterprises

Nowadays, researchers’ study on DMI more focus on the influence of DMI to new products or new products development, Few focus on the influence to the manufacturing performance in manufacturing enterprises. Especially it lacks empirical research on how DMI’s various activities influence manufacturing performance and how interact on each other between them. Based on the theoretical analysis on DMI, this paper analyzes the correlations between horizontal organizational integration, design integration, technological integration and the relation between them and manufacturing performance, provides the hypothesis, and carries out the empirical research on 150 enterprises in china in 2009’s International Manufacturing Strategy Survey, it turned out that horizontal organizational integration, design integration between design and manufacturing departments have positive promoting effect on technological integration. Horizontal organizational integration, design integration and technological integration have positive promoting effect on manufacturing performance. Technological integration plays mediating effect between horizontal organizational integration and manufacturing performance. Technological integration plays mediating effect between design integration and manufacturing performance.

A study on the relation between manufacturing strategy, company size, country culture and product and process innovation in Europe

With the goal of contributing to the manufacturing strategy formulation discussion within international manufacturing networks, a set of data analyses were performed with the aim of empirically supporting conceptual approaches. This article presents the results of establishing correlations between four sets of data pertaining to 14 European countries. Six inter-relations are investigated between the datasets, pertaining to manufacturing strategy, distribution of company size, product and production related innovation and measures of culture of the countries. The analyses draw on empirical data, collected independently by EU organisms and within the International Manufacturing Strategy Survey (IMSS) IV consortium, with less than three years apart in date of collection. Hofstede’s (1980, 2001) measures of power distance, masculinity, individuality and uncertainty avoidance constitute the cultural measures considered. Pearson correlations resulted mostly in low levels of correlation, but considerable levels of determination were unveiled. These concern inverse correlations between rates of specific kinds of innovation in manufacturing companies and the percentage of large companies per country as well as the employment of a specific kind of manufacturing strategy. The results provide an overview of European specific dimensions of manufacturing and how they match each other, based on a recent time frame (2003 to 2005).

An Exploratory Study of Differences in Manufacturing Strategy between National and Global Production Firms

The purpose of this paper is to explore differences of the manufacturing strategy between plants that produce in a global manufacturing network and such plants that are part of local production only. Both groups of firms serve a worldwide market. As methodology, the paper uses statistical analyses, in particular difference and correlation tests, which are based on data from the fourth round of the International Manufacturing Strategy Survey (IMSS). Major findings are that the two groups of plants differ concerning their order winners, capabilities and performance. Both types of plants exist in substantial quantities within the sample. Based on these results, the paper puts forward a detailed research agenda of manufacturing strategies in international contexts.

Formulation of manufacturing strategies using organizational knowledge created via e-business mechanisms

Eff ective manufacturing strategies have been developed and explored in recent years. Successful manufacturing strategies can result in high manufacturing performance and enable manufacturers to obtain powerful competitive advantages. The question of how to formulate a manufacturing strategy that provides these benefi ts is an important one. This study explores the importance of organizational knowledge creation to the formulation of manufacturing strategy and enhancement of performance and investigates whether organizational knowledge can be created via an e-business mechanism. In this study, we collected 521 observations from a global sample drawn from the International Manufacturing Strategy Survey (IMSS) database and tested the data using structural equation modeling (SEM).

Electronic commerce applications for supply chain integration and competitive capabilities

PurposeThe purpose of this paper is to empirically examine the impacts of supplier‐ and customer‐oriented electronic communication technologies (ECTs) (electronic data interchange (EDI) and internet‐based) on supply chain integration and manufacturing competitive capabilities (flexibility and quality).Design/methodology/approachThe research model is based on resource‐based view of technology use, ECTs, and supply chain management literature. Data from 711 international manufacturing firms International Manufacturing Strategy Survey (IMSS IV) are analyzed using exploratory factor analysis and structural equation modeling to test the proposed relationships.FindingsThe results suggest: the importance of applying two specific ECTs (EDI and internet‐based) for both supplier and customer integration; and the direct impact of supplier integration and customer integration on manufacturing competitive capabilities.Research limitations/implicationsExcept for perceptual biases inherent to survey methodology, this research provides rich implications on ECTs (particularly, EDI and internet‐based) on supply chain integration and manufacturing competitive capabilities.Practical implicationsThe findings of this research provide practical management insights on ECTs investment and deployment practices. Creation and delivery of values require effective integration of technologies for key performance outcomes across suppliers, customers and internal business processes.Originality/valueThis paper fills the research gap by presenting a research model and empirically validates how ECTs impact on quality and flexibility based on rich empirical data of 711 firms of manufacturing firms.

Moderating the impact of global sourcing on inventories through supply chain management

In recent years, companies have paid growing attention to supply chain management at a global level. With regard to the upstream part of the supply chain, the need for better suppliers, the research into specific competences and concerns related to international competition have forced companies to improve their ability to cope with suppliers located in different countries around the world. The literature suggests that the geographical distance of suppliers should create higher inventory levels primarily because of longer and more uncertain lead times. However, as this paper aims to demonstrate, companies can limit this effect by means of specific investments in the supply chain and in their relationships with suppliers. The empirical analysis is based on data from the last edition of the International Manufacturing Strategy Survey (IMSS). The results show that companies performing global sourcing have invested in supply chain management (SCM) and that this has been helpful in keeping their inventories under control.