Manufacturing Strategy Literature Research Articles

Theoretical developments in empirical quantitative manufacturing strategy literature

PurposeThe purpose of this paper is to report the extent and trends of theoretical developments in the empirical quantitative manufacturing strategy (MS) literature published between the years 1966 and 2015 and provide research gaps that can be bridged by the future research.Design/methodology/approachThis content analysis-based literature review analyzes 133 empirical quantitative MS articles published in refereed international journals in the discipline of operations management. These articles are categorized into five article types, namely, reporters, testers, qualifiers, builders, and expanders following the framework of Colquitt and Zapata-Phelan (2007). Analyses are carried out to unearth important trends in theory development in these article types.FindingsTheory development is progressing in empirical quantitative MS literature. However, the trend is shifting from theory testing to theory building. MS discipline has borrowed theories from other disciplines. Expectancy theory and media richness theory are the micro theories while resource-based view, contingency theory, and trade-off theory are the major macro theories used in this domain. The most impactful constructs include environmental technology portfolio, enterprise resource planning, manufacturing proactiveness, and modularity-based manufacturing practices, and the most dominant article types are qualifiers and expanders.Research limitations/implicationsThe findings are based on the empirical quantitative articles published in the MS discipline which provides a partial view of theory development in the MS discipline.Practical implicationsThe paper highlights predominant theories, frameworks, and constructs that can be utilized by practitioners to improve their understanding of MS, their ability to predict future scenarios and solve practical problems.Originality/valueNo such study has been conducted to date in the MS discipline, and it is hoped that this study will play a significant role in further developing theory in the MS discipline.

Lean Application to Manufacturing Ramp-Up: A Conceptual Approach

This article provides a theoretical overview of the concepts of lean and manufacturing ramp-up in an attempt to conceptualize the strategic areas in which lean philosophy and principles can be applied for continuous improvements. The application of lean principles during the final stage of a new product development process, that is, the ramp-up process, is a critical, early enabler of lean manufacturing.The manufacturing strategy literature conceptualizes a state of “leanness in operations,” which can consolidate both the concepts of lean and manufacturing ramp-up, providing a dual perspective. ing from the extant literature, the authors considered the competitiveness of manufacturing companies from two principal perspectives: the leanness of the ramp-up process and the new-value creation of quality managers. While much of the literature fails to acknowledge that the roots of lean actually lie in quality evolution and TQM, there is relatively sparse evidence on the subject of applying the lean philosophy to manufacturing ramp-up, so this study is an attempt to address this gap. This is achieved by providing a comprehensive outline of the two concepts and illustrating the areas in which mutual benefits can be drawn, as well as providing a conceptual framework for future studies in lean application to the manufacturing ramp-up process.

Time-based competence and performance: an empirical analysis

Purpose– The purpose of this paper is to evaluate the relationship between time-based manufacturing competence (TBMC), time-based competitiveness, time-based manufacturing capability, and the performance of SMEs engaged in the steel minimill industry in the USA.Design/methodology/approach– This study was based on an empirical investigation of manufacturing firms in the steel minimill industry in the USA. The sample of firms was provided by the US Association of Iron and Steel Engineers. In order to obtain valid and reliable measures of the variables, previously validated scales were used to measure all variables. The primary data for the study were collected from a self-administered mail survey of 137 SMEs with the sample consisting of 71 SMEs indicating a response rate of 52 percent.Findings– Statistically significant positive relationships were found between all independent variables and performance. The results also indicate that the high performers have a higher TBMC than the low performers. The findings further confirm the assertion in the manufacturing strategy literature which states that time, as a strategic factor, is a source of competitive advantage.Research limitations/implications– From a methodological perspective, a potential concern may be that the measures are all self-reported. Consequently, the relationships tested may be susceptible to the influence of common method variance.Practical implications– TBMC enables SMEs to offer high-quality products at low cost and in a timely manner. This reflects the value of the positive relationship between TBMC and business performance.Originality/value– This study’s finding identifies the need for time-based competition. The literature suggests that the strategic focus on time enables firms to obtain a sustainable competitive advantage. Nevertheless, this suggestion has been based on conceptual rather than empirical research. The results of this study provide empirical support for that suggestion with respect to SMEs.

Exploring the servitization path: a conceptual framework and a case study from the capital goods industry

Performing servitisation requires choice consistency in terms of manufacturing structure, service structure, and the coupling between them. In this paper, we rely on the manufacturing strategy and service innovation literature to build a conceptual framework in order to investigate a servitisation path in industry. This framework aims at describing both the product-oriented production structure and the service-oriented production structure, at key points of a firm’s history. We use this framework within a case study from the capital goods industry, and show its relevance as a support for the diagnosis of consistencies or inconsistencies in strategic choices relating to the design of the product-service production system throughout time.

Themes of study in manufacturing strategy literature

Purpose– A literature review within the manufacturing strategy (MS) discipline with a focus on thematic developments is provided. Based on recent studies, a set of challenges posed to manufacturing enterprise of the future are summarized, and thematic areas are analyzed in relation to meeting those challenges. The paper aims to discuss these issues.Design/methodology/approach– Based on a select set of 506 articles published in top-ranked refereed international journals in the discipline of operations management, major and subthemes are identified and the publication trends in these themes are provided with time and across geographical regions, namely: North America, Europe, and other parts of the world.Findings– MS literature is predominantly focussed on the economic objectives of firms without a due focus on the social and environmental perspectives. MS literature covers 11 major thematic areas, namely: MS components and paradigms, manufacturing capabilities (MCs), strategic choices (SCs), best practices (BPs), the strategy process (SP), supply-chain management (SCM), performance measurement, transnational comparisons, global manufacturing, environmental/green manufacturing, and literature reviews. The research in two areas – SCs, and MCs – has been in decline, while the research in BPs, the SP, and transnational comparisons is growing (in absolute figures). Various research opportunities for future studies are identified.Research limitations/implications– The literature review is limited in its selection of articles and journals, however, the identified trends clarify the state of research by the MS research community at large.Practical implications– For researchers, multiple new research directions are identified in order to advance knowledge in the field of MS. The publication trends also highlight thematic areas where most of the MS body of knowledge is currently available and can be utilized by practitioners.Originality/value– The paper’s novelty comes from: first, a broader and deeper review of thematic areas that has not been researched before, second, trends in thematic areas by time, across geographical regions, and including time-region dyads, and third, coverage provided by MS literature in meeting challenges posed to manufacturing enterprise of the future.

Choices in manufacturing strategy decision areas in batch production system – six case studies

The configuration of a production system can be described by the choices a firm makes in its manufacturing decision areas. Manufacturing strategy literature lacks empirical research in manufacturing decision areas. The current paper is an exploratory study using six case companies on alternative configurations that can exist in a batch production system. Choices made in decisions such as layout, shop floor control, etc., were found to be similar for all six companies that use batch process. However, there were a number of decisions that were found to be non-process specific and are influenced by product complexity, important competitive priorities, strategic orientation of manufacturing, top management decisions and the size of the company. The paper concludes with managerial implications and future research directions.

English

This paper investigate the process of formation of manufacturing strategy in six Iran manufacturing small and medium-sized enterprises (SMEs). Realized manufacturing strategy can be considered to be the pattern formed in the stream of actions taken within a firm’s manufacturing function. The research aims to locate the source of that stream by identifying the causal origins of strategic manufacturing actions using a strategy charting method. The findings indicate that, for these companies, realized manufacturing strategy is predominantly formed through a bottom-up emergent process, arising from the preferences of personnel within the manufacturing function. For most strategic manufacturing actions, there is no demonstrable link to business strategy. As such, these firms are not following best-practice manufacturing strategy literature, which advises that manufacturing strategy be derived from business strategy in a top-down deliberate process. This is the case despite differences in the size, products, customers, owner-ship structures and histories of the companies. The paper speculates that, in Iran SMEs, more widely, manufacturing strategy may similarly not arise from the pursuit of business objectives. This may be because the concept of manufacturing as a potential strategic weapon is absent in the SME community, or because the formalized top-down deliberate process of developing manufacturing strategy associated with this concept is inappropriate in the dynamic environments in which most SMEs operate.   Key words: Manufacturing strategy, strategy process, small and medium-sized enterprise (SME), Iran.

Cumulative manufacturing capabilities: an extended model and new empirical evidence

There has been intense debate in the manufacturing strategy literature on the way in which firms work on different manufacturing capabilities, with two opposing approaches considered – the trade-off model and the sand cone model. Analysis of these models has essentially been based on study of the links amongst four classic manufacturing capabilities (quality, delivery, flexibility, and cost efficiency) and has obviated the need to consider environmental protection as an important manufacturing capability. This study analyses the theoretical arguments and the prior empirical evidence on the two models, and proposes and tests an extended sand cone model which includes the environmental protection objective alongside the four traditional ones. The research uses structural equation modelling and data from a sample of 274 manufacturers to contribute additional empirical evidence on the existence of cumulative effects amongst manufacturing capabilities. It is observed that the predominant strategic model in these firms is one of multiple, non-incompatible capabilities with cumulative effects according to the following sequence: quality, delivery, flexibility, environmental protection, and cost efficiency.

Product customisation: an empirical study of competitive advantage and repeat business

Empirical evidence is presented from 24 UK based manufacturing companies, all offering a degree of product customisation, with most having a significant pure customisation engineer-to-order (ETO) element. The evidence addresses the issue of competitive advantage, which has lacked empirical evidence in previous manufacturing strategy literature, and includes a detailed investigation of the strategic importance of repeat business. It contrasts its results with those previously found in the literature and concludes that there are significant differences in the competitive priorities theoretically associated with this sector. In particular, it is argued that cumulative capabilities are needed, with a low cost competence often included. Four different types of repeat business are identified, one relating to repeat business customisers and three relating to versatile manufacturing companies, and the strategic importance of repeat business is discussed. It is indicated that for some ETO companies, repeat business is perceived to be an important method to reduce costs and achieve business stability. However, a number of the other companies studied saw repeat business as infeasible and hence need to find other ways to reduce costs and improve company performance measures. Future research to extend this work into a longitudinal study or a broader survey is proposed.

Manufacturing managers' perceptions of functional power in manufacturing organizations

PurposeThe purpose of this paper is to examine differences in manufacturing managers' perceptions of functional area power in manufacturing organizations to address the perception in the literature that manufacturing has little if any power in the organization.Design/methodology/approachSurvey data gathered from 129 manufacturing executives in the USA are used to examine their perceptions of differences in functional power in manufacturing firms. Relative rankings of functional areas for four types of power – position, expertise, resource, and political – are used to examine perceived differences, and the relationship between power and the role of the manufacturing executive in strategic decision making.FindingsContrary to prior assertions in the manufacturing strategy literature, it was found that the manufacturing and marketing areas are perceived by manufacturing managers to be the most powerful functions, switching in their dominant roles depending upon the type of power. In addition, a relationship exists between position, expertise, and political power and the role of the manufacturing executive.Research limitations/implicationsAlthough, this research includes a second respondent from a sub‐sample of firms, future research should examine not only the manufacturing managers' perceptions of intra‐organizational power, but also should dovetail the paper's findings with perceptions of managers in other functional areas as well.Practical implicationsManufacturing managers can take actions to enhance their role in business‐level strategic decisions and be proactive in increasing the power of their functional area.Originality/valueThis paper addresses intra‐organizational power, which has not been examined in the manufacturing strategy literature from the perspective of the manufacturing manager's perception.

A dynamic view on strategic resources and capabilities applied to an example from the manufacturing strategy literature

PurposeThe purpose of this paper is to demonstrate the usefulness of a dynamic analysis of the development and management of strategic capabilities and resources in manufacturing. It aims to present dynamic resource/capability systems as a means to understand an issue from manufacturing strategy.Design/methodology/approachA case study from a standard textbook on manufacturing strategy is used to illustrate the approach that is mainly based on Warren's strategy dynamics. Extensions to this approach are introduced.FindingsDiagrams of dynamic resource/capability systems are valuable tools for understanding issues of interconnected and changing strategic resources and capabilities. Resources and capabilities can be interpreted as stocks in dynamic simulation models following ideas from system dynamics.Research limitations/implicationsThe exact nature of strategic capabilities and their relationships needs to be further investigated. Approaches need to be developed to measure and to quantify these concepts. The connection between Hill's order winners/qualifiers and the inflows/outflows of capability and resource stocks should be further examined.Practical implicationsStatic analyses of strategic issues are often difficult to interpret. The dynamic nature of strategic issues needs to be reflected in the tools used for analysing them.Originality/valueApplies a dynamic analysis to manufacturing strategy and uses a textbook example in a new way to illustrate the relevance of the approach.

Evolution in the strategic manufacturing planning process of organizations

This study examines how strategic manufacturing planning processes vary systematically with respect to planning characteristics, and how the planning process appears to evolve over time. Through an empirical evaluation of over 200 U.S. manufacturers, we document the existence of four strategic manufacturing planning groups. These groups vary with respect to the degrees of “rationality” and “adaptability” of planning. In addition, the strategic manufacturing planning history and level of planning maturity differs between these groups, providing evidence that the planning process changes and evolves over time from “non-rational adaptive” mode towards a more “rational adaptive” approach. Firms between these polar extremes appear to take different paths in their movement toward a “rational adaptive” mode, with some “focusing on rationality” first and others “focusing on adaptability” first. We also show that irrespective of the firm's environment, a greater degree of “rational adaptivity” is correlated with better planning outcomes and business performance. As such, it represents a “best practice” approach to strategic manufacturing planning. Insights created by this work not only make an important contribution to the manufacturing strategy literature, but can also be used by senior manufacturing managers to facilitate their progress towards more effective planning.

Analisis Keproaktifan Unit Manufaktur sebagai Pembeda Kinerja Perusahaan

The Passivity of the operations function, when compared to the finance and marketing functions, has long been noted as one of the elements which can explain poor bussiness performance. The subordinate strate¬gic role often assigned to operations leads to a reactive posture. The proactive stance for manufacturing is likely to enhance overall business performance. The riset examined empirically the relationships between manufactur¬ing proactiveness and businees performance based on data collected from a sample of firms in the manufacturing industry. Based on the manufacturing strategy literature, we identify two mayor dimensions of manufacturing proactiveness:(1) the degree of manufacturing`s involvement in the strategic processes of the business unit, and (2) the degree of commitment to long-term program of investments in manufacturing structure and infrastructure aimed at building capabilities in anticipation of their need. The results of the study suggest that dimensions of manu¬facturing proactiveness are show distinguish between high and low performance firms. The firms that score highly on long-term investmens in structural programs coupled high levels of manufacturing invol¬vement in strategic processes and planned investments in infrastructural programs correlate with higher than average performance. Keywords: Manufacturing Involvement, Infrastructural Programs, structural Programs, Business Performance

Flexibility versus robust networks: the case of the Brazilian automotive sector

The “robust networks” concept of Ferdows is examined and related to other key theories from the manufacturing strategy literature, resource‐based and other conceptualisations of the organisation of innovation in international networks, and the international business debates on “operational flexibility”. The cases of seven international automotive assemblers with operations in Brazil are then considered in the light of Ferdows’ framework and the external factors bearing on the country and the sector within it. It is evident that, among the global assemblers, the “world” car strategy is dominant, leading to a concentration on the “source” and “lead” roles for individual plants, often combined with radical logistical arrangements. This seems in turn to support the argument for “robustness” rather than “operational flexibility”. Suggestions are made for further work to study the luxury car assemblers and other sectors where economies of scale are less important and where there is a greater degree of global dispersion of production facilities.

Extending product profiling through simulation

Manufacturing strategy literature continues to be split between process and content. Content has continually evolved and more precise applications have been developed. Process has lagged behind because of the difficulty in conducting research in this area. Little has been developed since the introduction of the product profiling mechanism. This study presents a methodology that extends the product profiling technique, resulting in more appropriate content recommendations. Two case examples, one manufacturing operation and one service operation, are provided to demonstrate the improved performance of the product profile when combined with simulation. In both cases, problem symptoms caused the organization to seek help in scheduling operations. Cursory study clearly indicated that neither organization had a scheduling problem, but rather, an improper relationship between the marketing and operations functions of the organizations. In both cases, it was possible to demonstrate, with product profiling, the lack of coordination between the marketing and operating functions of the organizations. Product profiling alone, however, was not sufficient to convince either organization to implement proper solutions. When changes were supplemented with a graphical simulation analysis, both organizations agreed with the recommendations and began implementing change.

The manufacturing strategy formation process in small and medium‐sized enterprises

Reports findings from an empirical investigation into the process of operations strategy formation in six small manufacturing companies in the UK. A two‐stage methodology was used, with three companies being studied in‐depth and three as supplementary cases. The top‐down strategic planning mode, which dominates the manufacturing strategy literature, was found to be inadequate as a depiction of manufacturing strategy formation in SMEs in practice. Manufacturing strategy formation was shown to be a complex process involving a combination of deliberate and emergent actions and decisions, influenced by organisational culture, politics and powerful individuals. Emergent actions and decisions within manufacturing always played a part in manufacturing strategy formation. Manufacturing strategy formation could be more deliberate if greater use was made of business planning and by the identification of a set of explicit objectives for manufacturing. Manufacturing strategy formation could be less emergent if political behaviour could be reduced. Other factors that seemed to be influential included the interpretative processes of managers, the role of a corporate parent and the level of management education.

Aligning work force management practices with competitive priorities and process technology: A conceptual examination

Despite the accepted need for strategic alignment in the manufacturing strategy literature, there has been relatively little research aimed at simultaneously aligning decisions in the structural and infrastructural areas with the competitive priorities of an organization. This article attempts to bridge the gap by examining how work force management practices, an infrastructural decision, should be aligned with both the process technology of a manufacturing plant, a structural decision, and its competitive priorities. A conceptual model for linking competitive priorities, process technologies, and work force management practices is presented, and specific and testable propositions are developed for future empirical research. The proposed conceptual model is based on the premise that the process of matching work force management practices to competitive priorities involves identification of the key managerial tasks underlying various competitive priorities. These tasks, in turn, are matched with the process technology characteristics and work force management practices to seek a good fit, which is expected to improve manufacturing performance.

In search of the source of the stream: the process of formation of manufacturing strategy in small and medium‐sized enterprises

This paper reports on research investigating the process of formation of manufacturing strategy in six UK manufacturing small and medium‐sized enterprises (SMEs). Realised manufacturing strategy can be considered to be the pattern formed in the stream of actions taken within a firm’s manufacturing function. The research aims to locate the source of that stream by identifying the causal origins of strategic manufacturing actions using a strategy charting method. The findings indicate that, for these companies, realised manufacturing strategy is predominantly formed through a bottom‐up emergent process, arising from the preferences of personnel within the manufacturing function. For most strategic manufacturing actions, there is no demonstrable link to business strategy. As such, these firms are not following best‐practice manufacturing strategy literature, which advises that manufacturing strategy be derived from business strategy in a top‐down deliberate process. This is the case despite differences in the size, products, customers, ownership structures and histories of the companies. The paper speculates that, in UK SMEs, more widely, manufacturing strategy may similarly not arise from the pursuit of business objectives. This may be because the concept of manufacturing as a potential strategic weapon is absent in the SME community, or because the formalised top‐down deliberate process of developing manufacturing strategy associated with this concept is inappropriate in the dynamic environments in which most SMEs operate.

REVISITING ALTERNATIVE THEORETICAL PARADIGMS IN MANUFACTURING STRATEGY

Testing and cross‐validation of theories and paradigms are necessary to advance the field of manufacturing strategy. When the findings of one study are also obtained in other studies, using entirely different databases, we become more confident in the results. Replication alleviates concerns about spurious results and is one motivation for this study. We examine aspects of the tradeoffs concept, production competence paradigm, and a manufacturing strategy taxonomy framework. In regard to the tradeoffs concept, we found evidence of tradeoffs between some, but certainly not all, manufacturing capabilities of quality, cost, delivery, and customization. The relationships get sharper when controlling for process choice. For example, the tradeoff between cost and customization is particularly strong between plants that have different process choices. We find that such tradeoffs can change, or even disappear, however, once the process choice is in place. With respect to the production competence paradigm, our analysis shows a statistically significant correlation between production competence and operations performance in batch shops, but not in plants with other process choices. Finally, using variables similar to those of Miller and Roth, our data produced three similar clusters even though their unit of analysis was much more macro than ours. Controlling for process choice is consistent with the current manufacturing strategy literature that emphasizes dynamic development of capabilities within the context of path dependencies. A major argument of this strand of research is that operations decisions not only affect current capabilities, but also set the framework for development of capabilities in the future. That being the case, controlling for process choice (or other factors such as industry or markets) should contribute to the understanding of capability‐development paths adopted by different manufacturing plants. In short, we found at least partial support for each of the theories examined here, even though the theories seem on the surface to be contradictory and mutually exclusive. Controlling for process choice or other measures of dependency goes a long way in uncovering consistency across different theories and empirical studies in operations management.

Manufacturing strategy in context: environment, competitive strategy and manufacturing strategy

AbstractConsidering manufacturing strategy in its larger strategic context has been thematic in conceptual literature in operations but relatively neglected in empirical studies, thus leaving predominant conceptual models of manufacturing strategy largely untested. This research develops a conceptual model of manufacturing strategy from the literature and tests the model using data from a sample of manufacturers in three industries in the United States. This research contributes to manufacturing strategy literature in four ways. First, it supports empirically a model of manufacturing strategy that is predominant in the conceptual literature. Second, it demonstrates that the strategic linkages in manufacturing businesses are clearer among good performers than poor performers. Third, this research suggests that competitive strategy acts as a mediator between an organization's environment and its manufacturing strategy. Fourth, the findings suggest that the relationship between competitive strategy and performance is mediated by manufacturing strategy. These last two findings have important implications for approaching research in manufacturing strategy in the future.