Mass Customization Capability Research Articles

The relationship between mass customization and sustainable performance: The role of firm size and global E-commerce

The formation of mass customization competencies is crucial for the increasing number of manufacturing companies in modern times. This study assessed the relationship between mass customization capability and its determinants on sustainable performance. Additionally, it explores the mediating role of mass customization capability and sustainable performance, while also examining the moderating effects of firm size and cross-border eCommerce in these associations. The study used online survey data from 339 manufacturing small-to-medium-sized enterprises in China to test the hypothesized relationships. The collected data were analyzed using partial least square structural equation modeling and necessary condition analysis. The results indicated that flexible manufacturing competencies, modular product architecture, and customer relationship management are significantly and positively connected to mass customization capability. Moreover, the study observed that mass customization capability and competitive pressure have a significant positive influence on the sustainable performance of Chinese manufacturing SMEs. The findings also revealed that firm size and cross-border e-commerce engagement have a negative and positive moderating effect, respectively, between mass customization capability on sustainable performance, which confirms a relatively higher effect of customization capability on sustainable performance among smaller firms and firms engaged in cross-border eCommerce. Fundamentally, these findings can lead to the development of a comprehensive framework to promote mass customization capability, cross-border e-commerce, and sustainable development of manufacturing small-to-medium-sized enterprises China.

The Impact of ERP Assimilation on Mass Customization Capability: A Dynamic Capabilities View

The Impact of ERP Assimilation on Mass Customization Capability: A Dynamic Capabilities View

Impacts of supply chain integration on product- and service-oriented mass customisation capability: the role of customer need

PurposeThis study aimed to investigate how different supply chain integrations (SCIs) (i.e. information integration and organisational integration) would impact product- and service-oriented mass customisation capability (MCC) differently and the moderating role of characteristics of customer needs (i.e. customer need tacitness and diversity).Design/methodology/approachFrom the perspective of information processing theory (IPT), the authors tested the hypotheses using survey data from 277 Chinese manufacturers.FindingsThe findings indicate that both information and operational integration contribute to product- and service-oriented MCCs. Operational integration promotes product-oriented MCC more, whereas information integration has a greater impact on service-oriented MCC. In addition, customer need tacitness negatively moderates the impact of operational integration on both product- and service-oriented MCC. Customer need diversity negatively moderates only the impact of operational integration on service-oriented MCC.Practical implicationsManagers should focus on not only the position (internal or external) but also the function of SCI when making decisions towards enhancing MCC. Diverse abilities to integrate with different functions are associated with different MCCs.Originality/valueThis study distinguishes between product- and service-oriented MCCs and provides novel insights for understanding how to enhance MCC from a SCI perspective.

Alternative paths to high mass customization capability and the subsequent performance outcome

PurposeAccording to sociotechnical systems theory, this study examines the configurational effects of modularity (product and process modularity), supply chain integration (information, operational and relational integration) and the characteristics of customer need (customer need tacitness and diversity) on MCC and the impact of high MCC generated by different configurations on economic performance.Design/methodology/approachThis study tests the model by combining fuzzy set qualitative comparative analysis (fsQCA) with propensity score matching methods based on data from 277 Chinese manufacturers.FindingsThe authors identify four equifinal configurations sufficient for high MCC and categorize them into three types: modularity + integration oriented, integration + customer need oriented, modularity + integration + customer need balance. The results further indicate that the high MCC triggered by three types of configuration affects economic performance in different ways.Practical implicationsThe results deliver an important message to manufacturing enterprises that high MCC can be achieved through multiple equally-effective combinations. Moreover, managers should focus on the fit between multiple conditions and choose the appropriate pathway to enhance economic performance.Originality/valueFrom a configurational perspective, these findings enrich the literature on enablers and performance outcomes of MCC by introducing an integrated model.

Business model design and mass customization capability: is supply chain integration a missing link?

PurposeThis study aims to examine the impacts of the novelty-centered business model design (NBMD) and efficiency-centered business model design (EBMD) on mass customization capability (MCC), as well as the mediating role of supply chain integration.Design/methodology/approachUsing survey data from 277 Chinese manufacturing firms, we test the hypothesized relationships by conducting structural equation modeling.FindingsThe results indicate that both NBMD and EBMD have significantly positive impacts on product-oriented MCC and service-oriented MCC. In addition, three dimensions of supply chain integration play different mediating roles in the relationship between BMD and MCC. Specifically, relational integration partially mediates the impacts of NBMD and EBMD on service-oriented MCC, information integration partially mediates the impact of NBMD on product-oriented MCC and service-oriented MCC and operational integration partially mediates the impact of NBMD and EBMD on product-oriented MCC.Originality/valueThis study opens the “black box” in the relationship between business model design and MCC, which offers insights on the complex process of supply chain integration and considers business ecosystem for operational performance.

Social capital impact on mass customization capability and innovation capabilities: the mediating role of absorptive capacity

PurposeThe main purpose of this study is to empirically investigate the influence of social capital (SC) on mass customization capability (MCC) and innovation capabilities (ICs) (products, processes, services and organizational) through absorptive capacity (ACAP) (acquisition, assimilation, transformation and exploitation).Design/methodology/approachData were collected from 201 managers of 67 Jordanian manufacture organizations. Statistical techniques used included confirmatory factor analysis to examine validity of the measurement model, and structural equation modeling using partial least squares to test the hypotheses.FindingsThe results of the analysis show that ACAP mediates the relationships between SC and MCC and between SC and ICs. Furthermore, the results show that SC has a positive, significant influence on ACAP and ACAP has a positive, significant impact on both MCC and ICs.Research limitations/implicationsInsights from this study can help manufacture managers to better understand the relationships among SC, ACAP, MCC and ICs in the context of Jordan’s economic development, as well as providing some useful guidance for the manufacturing sector’s customization and innovation activities.Originality/valueThis study develops and empirically tests a conceptual framework that relates ACAP, the development of MCC and ICs with the presence of SC as an antecedent of ACAP; hence, to the best of the author’s knowledge, it is the first study to test the mediating role of ACAP between SC and MCC and between SC and ICs.

Linking supply network flexibility with mass customization capability

PurposeThe importance of supply network flexibility (SNF) in the development of mass customization capability (MCC) has been implied in the literature but seldom subjected to empirical investigation. To fill the gap and contribute to MC literature, this paper aims to examine the role of SNF in facilitating the development of MCC of organizations. Furthermore, it has been investigated whether the use of information and communication technologies (ICTs) strengthens the above relationship.Design/methodology/approachDrawing on the supply chain literature and dynamic capability theory, the study proposes a research framework depicting the interconnectedness among the variables of interest. The proposed framework has been tested using structural equation modelling based on partial least squares by using the data collected from a questionnaire-based survey of a sample of Indian manufacturing organizations.FindingsThe findings indicate that the dimensions of SNF, namely, sourcing flexibility and supplier flexibility, positively affect the MCC of the organizations and the strength of these relationships is further amplified by the implementation of ICTs.Practical implicationsThe study shows the managerial opportunities for the development of a flexible and competent supply network to facilitate the development or enhancement of MCC.Originality/valueThis study contributes to scant literature by providing empirical evidence for the relationship between SNF and MCC. Further, this study enriches the understanding of the crucial role of ICT by exploring its moderating effect on the relationship between the variables of interest.

Responding to market turbulence by big data analytics and mass customization capability

PurposeThis study aims to explore how to respond to market turbulence by big data analytics (BDA) capability and mass customization capability (MCC) from the perspective of organizational information processing theory (OIPT).Design/methodology/approachThis study examines the research hypotheses using hierarchical regression analysis by collecting data from 277 Chinese firms.FindingsThe results reveal that supply chain agility (SCA) completely mediates the impacts of technical skills on product-oriented and service-oriented MCC and the impact of data-driven decision-making culture (DDC) on service-oriented MCC. SCA also partially mediates the impacts of managerial skills on two dimensions of MCC and the impact of DDC on product-oriented MCC. In addition, market turbulence strengthens the impact of managerial skills on SCA.Originality/valueThis study provides insightful contributions and implications for enhancing MCC to cope with market turbulence.

Operational coordination and mass customization capability: the double-edged sword effect of customer need diversity

PurposeThis study aims to explore how operational coordination affects mass customization capability (MCC) via organizational agility, the double-edged sword effect of customer need diversity and the moderating effect of competitive intensity based on dynamic capabilities perspective.Design/methodology/approachThis study examines the research hypotheses using hierarchical regression analysis by collecting data from 277 Chinese firms.FindingsThe results reveal that organizational agility partially mediates the impacts of operational coordination on product-oriented and service-oriented MCC. Customer need diversity is positively related to operational coordination, whereas negatively moderates the relationship between operational coordination and organizational agility. Moreover, competitive intensity negatively moderates the relationship between organizational agility and service-oriented MCC.Research limitations/implicationsThis study mainly used perceptual scales to measure organizational agility. There is a need to measure agility through Agility Index which consists of features' combination that enables agility.Practical implicationsManagers would thus do well to integrate business activities with supply chain partners and strive to foster an agile organization. Additionally, managers should take the leadership to assess the customer need and invest time and resources to respond to it when needed even though the response may be difficult.Originality/valueAlthough the importance of MCC in meeting personalized customer needs has been recognized, whether and how customer need diversity affects MCC remains unclear. This study provides a framework to study the relationships between customer need diversity and MCC, which deepens our understanding of how to enhance MCC to respond to diverse customer needs.

Building customisation capability in B2B marketing: the role of organisational capital

ABSTRACT Building marketing capabilities is at the forefront of marketing strategy in B2B marketing. As customisation is key for creating unique value for B2B customers, the ability to customise market offerings is, or ought to be, an integral part of B2B marketing strategy. Based on the premise that different forms of organisational capital constitute important building blocks of customisation capability, in this research, we (i) differentiate customisation capability in B2B marketing from mass customisation capability, (ii) build our model from the customisation, capability, intellectual capital, structural capital, and cognitive capital literature streams, and (iii) test the model of building customisation capability using key informant from 161 marketing research firms. We conclude with a discussion of the implications of our research for customisation theory and practice, the limitations of our research, and a detailed explication of future research opportunities.

Examining the Technical and Social Foundations of Mass Customization Capability: A Capability Hierarchy View

While many firms aspire to develop a mass customization capability (MCC) and much is known about the antecedents of MCC, the structural links between different levels of operational capabilities and MCC are underexamined. From a capability hierarchy perspective, we propose a three-order capability hierarchy in which engineering and processing capabilities, along with decision-making norms, act as foundations for operational innovation capability and MCC. We test the proposed model with survey data from 498 firms worldwide using structural equation modeling and bootstrapping mediation analysis. Our results support a hierarchical structure of capabilities for MCC, which categorizes capabilities at different levels and disentangles their capability creation mechanisms in the operational process. Our research enriches the current mass customization research stream by examining the social microfoundations of MCC and addresses the theoretical and empirical relationships among MCC, innovation, and other operational capabilities from a capability hierarchy perspective. This article also underscores the importance of managing capability links for competitive advantages.

Linking supplier selection and management strategies with mass customization capability

PurposeOwing to the paucity of literature, in the specific context of mass customization (MC), that explains what factors need to be considered while selecting suppliers and what strategies need to be implemented for effective management of suppliers, this paper aims to explore the effective supplier selection and management strategies and also investigate their impact on the development of mass customization capability (MCC).Design/methodology/approachThrough an extensive review of literature, a total of 18 factors for supplier selection and management have been identified. Further, using multiple regression analysis, the linkages between these factors and MCCs have been examined based on the data set from the survey of Indian manufacturing organizations.FindingsThe results indicate that while concentrating on the responsive and reconfiguration capability, all the five measures of supplier selection and the four measures of supplier management have shown a significant influence. However, in the case of relational capability, only two of the supplier selection strategies and three of the supplier management strategies have shown a notable impact.Practical implicationsThe study provides help to the firms in deciding whom to select and how to manage the suppliers in the course of improving their MCCs. The study has shown the possibility that different types of MCCs might require different approaches to both the supplier selection and management.Originality/valueTo the best of the authors’ knowledge, this study happens to be the first of its kind that investigates the interconnectedness among the supplier selection and management strategies and MCCs.

Linking big data analytical intelligence to customer relationship management performance

This study investigates the driving forces of a firm's assimilation of big data analytical intelligence (BDAI) and how the assimilation of BDAI improve customer relationship management (CRM) performance. Drawing on the resource-based view, this study argues that a firm's data-driven culture and the competitive pressure it faces in the industry motivate a firm's assimilation of BDAI. As a firm resource, BDAI enables an organization to develop superior mass-customization capability, which in turn positively influences its CRM performance. In addition, this study proposes that a firm's marketing capability can moderate the impact of BDAI assimilation on its mass-customization capability. Using survey data collected from 147 business-to-business companies, this study finds support for most of the hypotheses. The findings of this study uncover compelling insights about the dynamics involved in the process of using BDAI to improve CRM performance.

Competing through manufacturing: countering a product's liability of foreignness through mass customization

PurposeThe operational capability of mass customization (MC) allows consumers to obtain products tailored to their idiosyncratic needs. This study aims to provide insights into the potential of this capability for countering a product's liability of foreignness – the negative effect of the out-group status of a product's country of origin (COO) on consumers' evaluations of the product.Design/methodology/approachBased on the social identity approach, it is hypothesized that this liability is reduced when a consumer product is mass-customized rather than standardized as per a mass-production strategy. This hypothesis is tested using a mixed between- and within-subject experiment.FindingsWhen evaluating mass-produced sneakers, native German-speaking (Italian-speaking) South Tyrolean consumers rated the quality of Italian (German) sneakers significantly lower than that of German (Italian) sneakers. However, when the sneakers were mass-customized, this difference in perceived product quality was non-significant for both groups of consumers, supporting the research hypothesis.Research limitations/implicationsFuture research could replicate this study in other samples, with other product types, COOs and countries of destination, as well as at different degrees of product customization.Practical implicationsBusiness-to-consumer firms contemplating the development of their MC capability are made aware that the benefits of this operational capability might go beyond the typical advantages highlighted by the existing literature.Originality/valueThis paper joins the discussion on MC value by offering a theoretical explanation and empirical support for another mechanism through which the operational capability of MC can create value, at least in business-to-consumer industries: by countering a product's possible liability of foreignness and thus increasing perceived product quality in export markets.

Motives and performance outcomes of mass customization capability: evidence from Chinese manufacturers

PurposeThe purpose of this study aims to develop and test a motives-mass customization (MC) capability-performance model by dividing MC capability into product-oriented MC capability and service-oriented MC capability.Design/methodology/approachThis research tests the hypothesized relationships using survey data from 277 Chinese manufacturing firms.FindingsThe results indicate that instrumental, relational and moral motives all have significantly positive impacts on product-oriented and service-oriented MC capability. The authors also find that product-oriented MC capability partially mediates the impacts of relational and moral motives on operational, environmental and economic performance, while service-oriented MC capability partially mediates the impacts of instrumental, relational and moral motives on operational, market, environmental and economic performance.Originality/valueThis study complements the existing MC literature by describing MC capability into two dimensions: product-oriented MC capability and service-oriented MC capability.

Achieving mass customization capability: the roles of flexible manufacturing competence and workforce management practices

PurposeThe purpose of this study is to investigate the effects of flexible manufacturing competence (FMC) and workforce management practices (WMP) in facilitating the development of mass customization capability (MCC). More specifically, this research analyzes not only the direct effects of FMC and WMP on MCC but also the moderating effect of WMP on the relationship between FMC and MCC.Design/methodology/approachBuilding on the resource-based view, a research framework depicting the linkages among the variables of interest has been proposed. The examination of the proposed research model and hypotheses are conducted by applying partial least squares-structural equation modelling (PLS-SEM) on a dataset of Indian manufacturing organizations.FindingsThe findings suggest that both FMC and WMP significantly and positively affect the development of MCC. Also, the results show that the relationship between FMC and MCC is strengthened by the implementation of WMP.Practical implicationsThe study identifies several crucial practices for enhancement of flexible manufacturing competence and effective management of the workforce and also highlights the complementarities among them to develop superior MCC.Originality/valueWhile the research on the antecedent of MCC has increased substantially, the understanding of the interactions among FMC, WMP, and MCC is still limited. This is the first study that sheds light on the interconnectedness among the variables of interest.

Consolidated and inconclusive effects of additive manufacturing adoption: A systematic literature review

Additive manufacturing (AM) is considered an emerging Industry 4.0 technology with the potential to significantly change operations and supply chain management. In this context, this study aims to explore the effects of AM adoption on how companies conduct business. To achieve this goal, a systematic literature review including 136 papers was conducted. As a result, a framework including all of the effects (consolidated and inconclusive) found of AM adoption on a company's business was developed. While various effects (e.g., the feasibility of a complex product, the freedom of product design, mass customization capability, and product variety) have frequently been studied in the literature and are consolidated, some are still considered consolidated effects but presenting only conceptual studies (e.g., enterprise reliability, equipment reliability/availability for maintenance, information flow, and production democratization) then needed practical research. In addition, there are still contradictions regarding the effects of AM on competitiveness, cost, dependence on the supplier, environmental impact, health and safety, product quality, production efficiency, responsiveness, supply chain complexity and flexibility, worker qualifications, number of workers and workload (inconclusive effects). In the end, this paper identifies management and technical/technological aspects to be considered when adopting AM, which have positive or negative effects on the AM adoption process. The most important aspects include technology, production strategy, technical requirements and supply chain distribution, influencing AM adoption positively or negatively. Then, we also highlight some inconclusive research results from the literature, presenting opportunities for future research. This work may support managers and policy makers in better understanding the AM adoption process and their potential business impacts.

The Impact of Customer Relationship Management and Organizational Culture on Mass Customization Capability and Firm Performance

In today's world of heightened competition and ever-growing demand of customers, the development of customer-centric and learning-oriented culture, mass customization capability (MCC), and effective implementation of customer relationship management (CRM) are important determinants of success, but the existing research has largely overlooked how these factors interact and affect firm performance (FP). To address the gap, the present study proposes and empirically examines a framework that relates CRM and organizational culture (OC) to MCC and FP. Based on the data collected through a questionnaire-based survey of Indian manufacturing organizations, the proposed framework and associated hypotheses are empirically examined by using structural equation modelling based on partial least squares (PLS-SEM). The results indicate that the extent of effort employed by the firms to implement CRM and development of learning-oriented OC positively affects FP. Furthermore, MCC and OC have significant indirect impact on the relationship between CRM and FP.

Manufacturing practices and servitization: The role of mass customization and product innovation capabilities

Servitization has been viewed as an important method for manufacturers to gain competitive advantages. The purpose of the study is to empirically examine the effects of lean and agile practices as well as mass customization and product innovation capabilities on the implementation of servitization. The hypotheses are empirically examined using structural equation modeling with data collected from 647 manufacturers. The results show that product innovation capability directly improves servitization. Although the direct effect of mass customization capability on servitization is not significant, it improves servitization indirectly through product innovation capability. The findings also reveal that the direct impacts of lean and agile practices on servitization are not significant. Lean and agile practices affect servitization indirectly through product innovation capability, whereas the indirect effects of lean and agile practices on servitization through mass customization capability are not significant. Therefore, this study draws the conclusions that a manufacturer should develop mass customization and product innovation capabilities simultaneously when implementing servitization. Moreover, a manufacturer should also invest on lean and agile practices and product innovation capability at the same time when transforming to a service-based business model to cultivate their synergies on servitization.

Operations managers’ individual competencies for mass customization

PurposeThe development of mass-customization capability (MCC) is crucial for a growing number of manufacturing firms nowadays and presents great challenges, especially in the area of operations management. The purpose of this paper is to provide insights into which individual competencies (ICs) of an operations manager (OM) are important to the MCC of the manufacturing organization the OM works for.Design/methodology/approachA multiple-case study was designed, involving eight machinery manufacturers in one European country, to collect data on their MCC and on the ICs of their OMs. Empirical case data were triangulated with analytical conceptual arguments grounded in the existing literature.FindingsThe study provides empirical evidence of, and logical explanations for, the fact that OMs working in high-MCC manufacturing organizations use the ICs of negotiation, information seeking, efficiency orientation, analytical thinking and pattern recognition significantly more often than OMs employed by low-MCC organizations.Research limitations/implicationsFuture research could replicate this study in other industries and countries, as well as for other managerial roles.Practical implicationsThe study provides indications for OM selection and training in companies that are pursuing a mass-customization strategy.Originality/valueWhile the literature on technological and organization-level enablers of MCC has grown considerably, the understanding of its individual-level enablers is still limited and concerns mostly the workforce. This is the first study that relies not on practitioners’ opinions, but on data regarding manufacturers’ MCC and their managers’ ICs to shed light on which managerial competencies are important to a manufacturer’s MCC.