Mass Customization Capability Research Articles

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.

Mass Customization Enterprises’ Competitive Decisions Considering the Brand Effect

Compared with mass production (MP), mass customization (MC) can cater to consumers' preferences better and seize market share, but it also leads to cost premium. Especially in the competitive market, companies should consider the MC capabilities of the rival company when making decisions. Based on the traditional MC decision model, this paper analyzes the impact of MC on consumer utility from the perspective of brand value by introducing the brand effect; and quantitatively measures the cost premium by introducing product line cost. Besides, this paper considers the market equilibrium of the target enterprises with MC capability when their rival enterprises have different customization capabilities and gives the decision-making situation of the enterprise under different situations in the context of the Cournot model. Finally, this paper compares the consumer surplus and social welfare under different equilibrium and analyzes the impact of MC. We find that if the target company has the customization ability, it will gain a competitive advantage, and even squeeze the market out when the rival company is unable to carry out MC; if both companies have MC capability, the two enterprises may fall into prisoners' dilemma; the choice of MC is not necessarily conducive to the increase of consumer surplus, and the competition between the two MC companies may even lead to lower social welfare.

Absorptive capacity and business performance

PurposeThe purpose of this paper is to examine the multiple paths of absorptive capacity’s (AC) effect on business performance (BP): direct effect and indirect effects through innovation and mass customization (MC).Design/methodology/approachThe authors examined the role of innovation and MC capability on the relationship between AC and BP. Data from 278 Chinese firms in four manufacturing industries collected by questionnaire are used to empirically examine the proposed model by Structural equation modeling.FindingsThe results show that AC can directly enhance BP, and indirectly through innovation and MC capability. The study also finds that MC capability has a stronger mediating effect than innovation.Originality/valuePrior studies have not yet built linkages between AC and BP with both innovation and MC’s effects. This study provides empirical evidence of the effects of AC on BP and three paths are discussed including AC’s direct effect and indirect effects through innovation and MC to firm’s BP. This study provides a new direction for executives to better understand the movement of knowledge along supply chain and in intra-organizational environment, and of the importance of innovation and MC capability since they are essential carriers for BP enhancement.

Relationships between advanced manufacturing technologies, absorptive capacity, mass customization, time to market and financial and market performance

PurposeThe purpose of the paper is to empirically investigate the relationships between advanced manufacturing technology (AMT), absorptive capacity, mass customization (MC) capability, competitive advantage, and organizational performance measures.Design/methodology/approachBased on a literature review, a theoretical framework is derived. Structural equation modeling was chosen for the empirical analysis based on the focus of the research. Data collection was conducted from 232 Indian manufacturing managers.FindingsThe findings indicate that absorptive capacity has a positive impact on MC capability. Also, MC capability mediated the relationship between AMT and the financial and market performance. Furthermore, AMT positively impacted MC capability, and MC capability positively impacted both time to market and financial and market performance. AMT was not found to have a significant impact on financial and market performance.Originality/valueThe current study is meaningful and unique in that no study has investigated the linkages between AMT, absorptive capacity, MC capability and organization performance and competitive advantage measures in a unified context. Such investigations are important because the results will encourage managers to invest in developing these mechanisms, which in turn will influence firm’s ability to implement MC practices and yield benefits such as improved performance and competitive advantage.

3D Printed structural electronics: embedding and connecting electronic components into freeform electronic devices

ABSTRACTThe need for personalised and smart products drives the development of structural electronics with mass-customisation capability. A number of challenges need to be overcome in order to address the potential of complete free form manufacturing of electronic devices. One key challenge is the integration of conductive structures and components into 3D printed devices by combining different materials and printing techniques that have nearly incompatible printing conditions. In this paper, several methods to integrate electronic circuits and components into a 3D printed structure are discussed. The functional performance of the resulting structures is described. Structural parts were manufactured with a stereolithography-based 3D printing technique, which was interrupted to pick and place electronic components, followed by either direct writing or squeegee filling of conductive material. A thermal curing step was applied to enhance the bonding and improve the electrical performance. Optical micrography, 4-point resistance measurement and cross-sectional analysis were performed to evaluate functionality.

Leveraging high-involvement practices to develop mass customization capability: A contingent configurational perspective

This study focuses on the four human-resource-management (HRM) practices that characterize high involvement (HI), the most advanced approach to employee involvement. These practices push power, information, rewards, and knowledge down to the lowest level of an organization. The impact of these practices on a manufacturing firm's mass-customization capability (MCC) is examined, along with the way this impact is influenced by the degree of product customization (DPC) that the firm provides to its customers. Based on survey data from 195 manufacturing plants in three industries and eight countries, the study finds empirical evidence that these practices improve MCC when they are adopted jointly and, at the same time, DPC surpasses a certain threshold value. The same practices, when implemented independent of one another, do not have statistically significant effects on MCC. Furthermore, as DPC drops below the threshold, the effect of this configuration of practices becomes non-significant at conventional p levels and gradually decreases until it turns into a negative effect, which comes closer to statistical significance when the DPC reaches its minimum. This study is the first to examine the effects of HRM practices on MCC by taking full advantage of the contingent configurational perspective that is strongly advocated in the strategic HRM literature. The results of this study extend the debate on the organizational enablers of MCC and, at the same time, add to the well-established discussion on the performance outcomes of HRM practices in general and HI practices in particular.

Design for Mass Customisation in Higher Education: a Systems-Thinking Approach

The point of this research is to investigate the impact of systems-thinking principles (Seddon 2003) on operationalising the ‘mass customisation’ capability of student services in higher education institutions. The research empirically contributes to student-service mass customisation in higher education through the findings of a case study conducted at the admission and academic registry service department of one of the UK’s leading universities. A qualitative methodology was employed with the use of semi-structured interviews, focus group, observations, and documentation supplements. It was found that the principles of systems-thinking are positively related to enhancement of mass customisation capability through the realisation of three different levels of service mass customisation determinants. These three levels are: employee level (i.e. micro determinants); operational level (i.e. meso determinants); and functional level (i.e. macro determinants). A conceptual model was developed to explain the relationships among these three organisational levels, supported by empirical evidences. The value of this paper is the introduction of a conceptual model that could operationalise ‘mass customisation’ in universities by integrating human resources, operational and functional dimensions in a systematic design to deliver customised services for students as individuals.

Impacts of intellectual capital on process innovation and mass customisation capability: direct and mediating effects

This paper presents an empirical survey study. We propose a model to examine the individual and joint effects of the three components of intellectual capital (i.e. human, social and structural capital) on process innovation and mass customisation (MC) capability. The hypotheses are empirically tested using structural equation modelling and data collected from 645 manufacturing plants in 10 countries/regions. The results show that human and social capital are positively associated with structural capital. Human capital directly improves both process innovation and MC capability. The direct effect of social capital on MC capability and that of structural capital on process innovation is positive and significant. Moreover, process innovation is positively associated with MC capability. In addition, we find that structural capital mediates human and social capital’s effects on process innovation, and process innovation mediates human and structural capital’s effects on MC capability. This study contributes to the literature by providing insights into how human, social and structural capital jointly improve process innovation and MC capability, as well as how the different types of knowledge residing in a manufacturer affect MC capability development.

Impact of Product Modularity on Mass Customization Capability: An Exploratory Study of Contextual Factors

This study examines how the impact of product modularity (PM) on the mass customization capability (MCC) is moderated by several contextual factors, such as the firms’ information system capacity (ISC), teamwork (TW), multifunctional employees (MFE), and organizational structure (flat or hierarchical) (OSF). Data from 238 firms located in multiple countries across three different industry groups were analyzed to test the moderated regression models and the hypotheses. The results showed that the product modularity strongly impacts the MCC. Compared to ISC, the social contextual variables, such as TW, MFE, and OSF, have stronger moderating effects on the impact of the product modularity on the mass customization capability. In addition, ISC helps MCC solely for firms with flat organizational structures. Overall, our study suggests that manufacturers who desire to become mass customizers should create flat, nimble organizations with employees who are trained in several different tasks and are adept at teamwork.

Automatic Virtual Metrology and Target Value Adjustment for Mass Customization

One of the core values of Industry 4.0 targets to integrate people's demand into manufacturing for enhanced products, systems, and services for a wider variety of increasingly personalized customization of products. Thus, Industry 4.0 advances the traditional manufacturing techniques from mass production toward mass customization (MC). Take wheel machining automation (WMA) as an example. To meet MC expectations, manufacturers should offer customized wheels at a large scale with low cost, short lead-time, and high quality. Thus, WMA cells with MC capability are requested to be designed to have a high degree of quick responsiveness to accurately react on machining-condition changes for manufacturing different wheel types. To meet the requirements of MC production, this work proposes to apply the automatic virtual metrology (AVM) system together with the so-called target-value-adjustment (TVA) scheme. The AVM system was developed by the authors to convert sampling inspections with metrology delay into real-time and on-line total inspection, while the TVA scheme is designed to enhance AVM's adaptive customization capability for automatically and rapidly accomplishing the goals of MC production. To demonstrate the versatility of the AVM-plus-TVA approach, the other example in semiconductor etching process is also illustrated.

Effects of standardization and innovation on mass customization: An empirical investigation

Mass customization (MC) refers to the capability to produce customized goods for a mass market. Innovation can enhance the flexibility and responsiveness of a company, and standardization enables the company to achieve economies of scale and scope, both of which are necessary for developing MC capability. A conceptual model is proposed to explore the relationships among innovation, standardization, MC capability, and delivery speed. Hypotheses are tested using survey data from 204 manufacturing companies in China. The results show that standardization positively influences innovation. Innovation and standardization positively affect MC capability and are complementary in developing MC capability. Innovation significantly enhances delivery speed. However, the direct effect of standardization on delivery speed is nonsignificant. In addition, innovation and standardization indirectly affect delivery speed through MC capability. This study contributes to the literature by providing empirical evidence on the individual and interactive effects of standardization and innovation in developing MC capability and their joint influence on delivery speed. The results will help managers understand the roles of standardization and innovation in improving organizational capability and performance.

A Hierarchical Capability Model of Innovation and Mass Customization

While research has extensively explored the antecedents for a firm’s mass customization capability (MCC), the topic of how companies can develop their MCC is still relatively under-developed. This ...

Absorptive capacity and mass customization capability

Purpose– The purpose of this paper is to investigate the effects of a manufacturer’s absorptive capacity (AC) on its mass customization capability (MCC).Design/methodology/approach– The authors conceptualize AC within the supply chain context as four processes: knowledge acquisition from customers, knowledge acquisition from suppliers, knowledge assimilation, and knowledge application. The authors then propose and empirically test a model on the relationships among AC processes and MCC using structural equation modeling and data collected from 276 manufacturing firms in China.Findings– The results show that AC significantly improves MCC. In particular, knowledge sourced from customers and suppliers enhances MCC in three ways: directly, indirectly through knowledge application, and indirectly through knowledge assimilation and application. The study also finds that knowledge acquisition significantly enhances knowledge assimilation and knowledge application, and that knowledge assimilation leads to knowledge application.Originality/value– This study provides empirical evidence of the effects of AC processes on MCC. It also indicates the relationships among AC processes. Moreover, it reveals the mechanisms through which knowledge sourced from customers and suppliers contributes to MCC development, and demonstrates the importance of internal knowledge management practices in exploiting knowledge from supply chain partners. Furthermore, it provides guidelines for executives to decide how to manage supply chain knowledge and devote their efforts and resources in absorbing new knowledge for MCC development.

Strategic orientations and mass customisation capability: the moderating effect of product life cycle

This study examines the influence of three strategic orientations (customer, competitor and innovation) on mass customisation (MC) capability via the organisational learning process known as customisation knowledge utilisation (CKU). The moderating effect of product life cycle (PLC) is also investigated. Using data collected from 204 manufacturers, we show that all three strategic orientations positively contribute to MC capability, both directly and indirectly through CKU. Further, our empirical findings suggest that the effects of customer, competitor and innovation orientation on MC capability are contingent on PLC. The effects of customer orientation on CKU and the effects of competitor orientation on CKU and MC capability are stronger when a product is in the maturity stage of its life cycle, whereas the effect of innovation orientation on CKU and MC capability are stronger in the growth stage. These findings suggest that to effectively improve MC capability, managers need to leverage external and internal orientations at different stages of the PLC.

The impact of social capital on mass customisation and product innovation capabilities

Social capital with customers has three dimensions: structural, relational and cognitive capital. We propose a research model on the joint effects of the three dimensions of social capital on mass customisation capability (MCC) and product innovation capability (PIC). The hypotheses are empirically tested using structural equation modelling and data collected from 276 manufacturing firms in China. The results show that the three dimensions of social capital contribute to MCC and PIC development through different mechanisms. In particular, cognitive capital has a significant impact on MCC; relational capital significantly influences PIC; and structural capital indirectly associates with both MCC and PIC. We also find that structural capital enhances both relational and cognitive capital. MCC improves PIC and fully mediates cognitive capital’s effect on PIC. The findings extend current understanding about the complex interrelationships among structural, relational and cognitive capital and how to develop MCC and PIC by investing in social capital.

Antecedents of mass customization capability: Direct and interaction effects

Research suggests that flexible manufacturing resources, customer involvement, and product management tools contribute to a high level of mass customization capability. Conceptualizing these antecedents as resource types, we examine hypotheses about their direct and complementary effects on mass customization capability. Analyzing secondary survey data from 238 plants in eight countries and three industries via hierarchical linear regression, we find that each individual resource type has a positive direct effect on mass customization capability, as long as the levels of the other two resources are at their sample mean value. Probing these results via conditional effects and marginal effects plots provides partial support for the complementarity argument, and unveil complex nonlinear interactions among the three resource types. When the level of one resource type is low, the two remaining resource types exhibit a strong bivariate complementary effect on mass customization capability. Conversely, when one resource type is at a high level, the complementary effect on mass customization capability of the two remaining resource types disappears and is replaced by a cancellation effect. The detection of complementary effects and of cancellation effects are two specific theoretical contributions to the literature on how manufacturers can enhance their capability to mass customize.

Modularity in building mass customization capability: The mediating effects of customization knowledge utilization and business process improvement

This study investigates the relationships among product/process modularity, organizational learning practices, and mass customization (MC) capability. Drawing on organizational learning theory, we propose that organizational learning practices help to embed the knowledge gained from modular design practices into organizational processes, enhancing MC capability. We empirically test the mediating effects of two organizational learning practices—customization knowledge utilization and business process improvement—on the relationship between product/process modularity and MC capability, using data collected from Chinese manufacturers. We find strong support for the mediating role of organizational learning practices in the relationship between modularity and MC capability. Our findings have implications for management strategies and point to directions for further research in this area.

Linking strategic flexibility and operational efficiency: The mediating role of ambidextrous operational capabilities

We elucidate the important, though complex, relationship between strategic flexibility and operational efficiency. We incorporate insights from the dynamic resource-based view, ambidexterity literature and managerial practice to explain how two ambidextrous operational capabilities, i.e., mass customization capability and innovative ambidexterity, fully mediate the relationship between strategic flexibility and operational efficiency. Using top-level executive data in India and the United States of America, our structural equation models show that ambidextrous operational capabilities link strategic flexibility and operational efficiency. While informing the debate on developing sustainable competitive advantage, we derive important theoretical and managerial implications for both operations management and strategic management.

Research on enterprise customization diagnosis for mass customization

In order to determine and address the problems which appear when enterprise implement mass customization products, the conception about mass customization diagnosis is confirmed, and basal thought and process on mass customization diagnosis are presented. According to the characteristics of customization system and the intention of diagnostic, a multi-layer corporation customization diagnosis model based on fuzzy mathematics theory and set-covering technology is built. The consistency and coverage of this customization diagnosis model are analyzed, and solving strategies are given. Finally, the customization diagnostic model is applied to two bike companies and occurred cause of the problems is positioned by comparing with standard enterprise, using mass customization capability evaluating index, combined with factors of corporation mass customization ability, from the top to the lower layer, step by step going fault location, finally positioning occurred cause of the problem. According to this, the improvement measures and methods are proposed for the two enterprises.

The effects of organizational flatness, coordination, and product modularity on mass customization capability

This study examines the effects of organizational flatness, coordination (cross-functional coordination, cross-plant coordination and supply chain coordination) and product modularity on mass customization capability (MCC) development. We develop a flatness-coordination-modularity-MCC model. Data from 317 firms located in ten countries across three industries are analyzed to test the research model using partial least squares. Our results show that product modularity, cross-functional coordination and supply chain coordination significantly contribute to MCC, whereas the influences of cross-plant coordination and organizational flatness are insignificant. Organizational flatness enhances coordination practices, and its effect on MCC is fully mediated by cross-functional and supply chain coordination. Moreover, both cross-functional and cross-plant coordination increase product modularity, whereas supply chain coordination does not. We also find that such empirical results are not significantly affected by industry type or plant size. This study contributes to the literature by providing empirical evidence of the links between the practices of flatness, coordination and modularity, and the ways in which they jointly improve MCC. Our findings also provide guidance for managers and executives regarding how to design organizational structures and coordinate with both internal and external stakeholders to improve product modularity and MCC. Limitations of the study related to the nature of the data and the plant level focus are noted.