Operations Management Literature Research Articles

Sustainability Practices and Performance in the Manufacturing Sector: The Role of Paradoxical Mindset

Sustainability has recently become a key to long-term business success. Firms are applying sustainability practices to improve their sustainable performance. However, the application of these practices has led plant managers to face the competing demands of sustainability objectives. A paradoxical mindset may help these manager to respond to such competing demands. However, the existing literature lacks empirical research on the role of a paradoxical mindset in sustainability practices and related performance paths. To fill this research gap, our paper aims to test the direct relationship between sustainability practices and connected performance. Furthermore, the study also aims to explore how a paradoxical mindset affects this direct relationship. The data was collected from 224 manufacturing plants and analyzed using Structural Equation Modeling (SEM-Smart-Pls). The findings revealed that Sustainability practices positively influence economic, environmental performance, and social performance. Furthermore, this study discovered that a paradoxical mindset moderates the relationships between sustainability practices and environmental performance. however, the study did not find any empirical evidence to support the effect of the interaction of paradoxical mindsets and sustainability practices on social performance. This study attempts to fill certain gaps in operations management literature and provides researchers and manufacturing managers with a deeper understanding of the roles of sustainability practices and the paradoxical mindset of the plant' managers in the manufacturing sector.

Pride or Guilt? Impacts of Consumers’ Socially Influenced Recycling Behaviors on Closed-Loop Supply Chains

Problem definition: Social influenced emotions of pride and guilt have been identified by the environmental psychology (EP) literature as crucial drivers impacting recycling behavior, but they have mostly been overlooked in operations management (OM) research. In contrast, EP studies often ignore firms’ operational decisions. We analyze the impacts of both social influence and firms’ operational decisions to provide a comprehensive understanding of consumers’ recycling behaviors, which is essential for realizing remanufacturing’s full potential. Methodology/results: We consider a closed-loop supply chain consisting of a manufacturer selling a single product to a consumer community. Consumers’ recycling behavior depends on both the recycling reward offered by the manufacturer, as well as intrinsic and socially influenced pride (guilt) from recycling (not recycling). We develop an evolutionary game to model consumers’ recycling behavior and characterize the resulting equilibrium recycling rate, which is then integrated into the manufacturer’s decision problem. We characterize the manufacturer’s optimal strategy and the equilibrium recycling rate in four distinct regions defined by both the product’s overall difficulty of remanufacturing and the underlying strengths of consumers’ socially influenced pride and guilt. We show that in settings where the product has a moderately high difficulty of remanufacturing and consumers have stronger socially influenced pride than guilt, the manufacturer optimally induces an interior recycling rate. In such scenarios, there exist win-win pathways in using social influence–based interventions to increase both the manufacturer’s profit and the recycling rate. However, misalignment may occur when consumers substantially care for the product’s recyclability. Managerial implications: This study bridges sustainable OM and EP literature by analyzing how consumers’ socially influenced emotions of pride and guilt affect a manufacturer’s optimal decisions, profits, and the resulting recycling rate. We provide important insights for designing effective and efficient social influence–based interventions to improve recycling rates. Funding: W. Chen was supported by the National Natural Science Foundation of China [Grant 71902017], and C.-L. Tseng was supported by the University of New South Wales UNOVA Knowledge Hub. Supplemental Material: The online appendices are available at https://doi.org/10.1287/msom.2023.0721 .

The Relevance of Rewards in Performance- Based Management Control

This study aims to increase the understanding of how employees in different or-ganizational contexts and hierarchical levels explain and appreciate, i.e. under-stand, their organisation's reward systems. Two different schools of thought have dominated the debate of how to conceptualize the role of rewards in performance management and organisation psychology literature: agency theory and self-determination theory. This study combines these schools and take both monetary aspects into account in line with what is prescribed in agency theory and more non-financial aspects that self-determination consider. The study applies a case study approach based on interviews and publicly available information from five Finnish organisations. The organisations analysed operate in different sectors, have different organisational structures, and use different reward systems. From a careful investigation of the five different organisations, a cross-sectional picture emerges showing the role of reward systems in companies, and their perceived importance as management control tools. The findings show that reward transpar-ency and fair communication are the most significant factors affecting the experi-ence of employees towards performance-based management control system that is used to allocate rewards. Monetary rewards should also be complemented and linked with social non-financial rewards to reach the decent management control acceptance and understanding in the organisation.

Self-reliance or dependence? patterns of information technology use on innovation performance

The association between information technology (IT) and firms’ innovation performance remains underexplored within the current Operations Management literature. We attempt to address this void by exploring how patterns of IT use (exploration and exploitation) influence innovation performance. We also introduce distinct types of supply chain (SC) innovation strategies, and explore how internal, external, and ambidextrous (balanced and combined) innovation strategies moderate the relationship. Drawing upon the dynamic capability view, we consider patterns of IT use as firms’ dynamic capabilities that can foster innovation performance, and regard SC innovation strategy as organisational paths that may influence the effectiveness of IT use. We empirically examine the relationship using data from 995 manufacturing firms featured in the World Bank China Enterprise Survey. We find IT exploitation and exploration positively influence innovation performance. Additionally, the internal innovation strategy can amplify the positive effect of IT exploitation, while exerting a non-significant moderating effect on IT exploration. Interestingly, the positive impacts of both IT use patterns on innovation are weakened when firms adopt external and ambidextrous innovation strategies. Our study contributes to a deeper comprehension of the relationship among IT use, SC innovation strategies, and firms’ innovation performance based on a dynamic capability view.

A newsvendor model with multiple reference points: Target-setting for aspirational newsvendors

Prospect theory posits that the determination of an outcome as a gain or loss hinges upon the reference points, thereby exerting a substantial influence on the decision-making processes of individuals. These reference points can encompass both external targets and internal aspirations (self-goals), forming two potential candidates. Despite a growing body of evidence showcasing the concurrent impact of multiple reference points on decision-makers’ choices, scant attention has been accorded to this phenomenon within the realm of operations management literature. In light of this, the present study delves into the influence wielded by an external target, functioning as a reference point, on the decisions and profitability of newsvendors who also harbor a well-defined aspiration (self-goal) reference point. The study introduces two distinct archetypes of newsvendors: the balanced newsvendors, adept at harmonizing personal needs with target attainment and thus navigating decisions influenced by dual reference points; and the focused newsvendors, singularly fixated on target realization and thereby governed by a sole target reference point. Our findings reveal that the effects of target-setting in boosting expected profits on both categories of newsvendors are contingent upon the specific value attributed to their self-goal. The implications of target-setting can either yield advantages or drawbacks, contingent upon the self-goal. This asymmetry in outcomes holds true for both balanced and focused newsvendors, with the former exhibiting a higher likelihood of deriving benefits from target-setting. Moreover, an exploration of scenarios wherein a newsvendor’s self-goal may undergo updates underscores the potential for further enhancement in the performance of balanced newsvendors.

How do social enterprises respond operationally to conflicting demands? A resource-based view

PurposeSocial enterprises live in the limbo between social and market objectives, posing many operations management challenges. This study extends the discussion of operational priorities, which has focused on purely for-profit organisations, to the context of social enterprises by exploring, from a resource-based perspective, which resources and operational priorities are most important to them and how they are used to respond to conflicting demands.Design/methodology/approachMultiple case study research was carried out involving five Portuguese social enterprises, representative of the main sectors in which social enterprises operate in Europe. Ten semi-structured interviews with directors and other high-ranking respondents were conducted, and content was analysed to gather evidence on the key resources and operational priorities pursued by social enterprises. Cross-case conclusions were drawn, resulting in theoretical propositions and a conceptual framework.FindingsFindings suggest that social enterprises rely on intangible resources and combine different operational priorities, which may vary throughout their lifecycle. Community engagement has emerged as a specific operational priority, in addition to those already reported in the manufacturing and services literature. To balance conflicting demands, most social enterprises studied combine innovation with community engagement or customer focus.Originality/valueThe study contributes to the development of knowledge about the operations strategy in the specific context of social enterprises, an organisational model that has not been systematically addressed in the operations management literature, and brings the discussion of operational priorities into the social enterprise field, thus strengthening the link between these two fields.

Meta-analysis of association between Just-in-Time system and firm performance: moderating effects of National Culture differences

PurposeThe effectiveness of the Just-in-Time (JIT) production system in non-Japanese contexts is a topic of diverse findings. This study conducts a meta-analysis of empirical research on JIT and its relationship with performance, focusing on studies published since 1995. Additionally, it examines the moderating influence of National Culture (NC) values on JIT outcomes.Design/methodology/approachA total of 59 empirical studies with 211 effects and 17,008 observations from 18 countries are meta-analyzed. A meta-regression using hierarchical linear modeling (HLM) is performed to explore how four dimensions of National Culture (NC) moderate the impact. (viz. institutional collectivism, uncertainty avoidance future orientation, and power distance,) based on the Global Leadership and Organizational Behavior Effectiveness (GLOBE) culture model.FindingsThe meta-analysis results show that improved production efficiency, product quality and reduced wastes achieved through JIT deployments translate into the overall performance of organizations. The meta-regression results shed light on how local cultures influence the effectiveness of JIT across different countries.Originality/valueThe findings of meta-analysis have implications for multinational manufacturers in realizing efficacy of JIT. The research adds to the international operations management literature by examining how NC values influence strategies and decisions in operations management.

Design principles for patient flow improvement in care pathways: a paradox theory perspective

PurposeThe patient flow performance achievable by care pathways is constrained by competing flow and resource efficiency, which can negatively impact improvements. This paper probes the divergence between resource and flow efficiency and how care pathways can lead to improved patient flow. By framing the problem through the lens of paradox theory, a set of design principles is proposed to assist decision-makers in care pathway implementation. Implications are derived for research and practice.Design/methodology/approachThe authors used conceptual research to develop design principles for care pathways based on a systematic review of relevant care pathway research. The initial search contained 515 unique articles, resulting in a final sample of 56 studies.FindingsWhen applying care pathways, patient flow may be negatively affected in relation to the dimensions of bottlenecks, non-value-adding activities, and variability. However, the findings also indicate methods that can be applied to manage organizational paradoxes, which can contribute to more efficient patient flow along each of the three dimensions.Research limitations/implicationsThe study is limited to care pathways and therefore could have missed relevant studies in similar fields, such as care coordination.Practical implicationsHealth care managers, politicians, and IT developers can apply the proposed design principles when developing, implementing, and improving care pathways and supporting technologies.Originality/valueWhile existing research has studied care pathways from a medical perspective, this is the first paper to the author’s knowledge that addresses care pathways directly by considering paradox theory and in light of the operations management literature.

The modern meaning of “quality”: analysis, evolution and strategies

PurposeBuilding upon the foundational eight dimensions of quality proposed by Garvin (1987), this research formulates a modern meaning of “quality.” This new meaning aligns with and encapsulates the evolving sophistication of consumers, the strategic quality investments made by firms, and the current dynamics of sales.Design/methodology/approachDue to the complexity of the concept of quality, a triangulation approach is used, which is composed of the following: a review of the literature, an analysis of consumers’ quality dimensions using both qualitative (interviews) and quantitative (survey) methods, as well as a quantitative investigation (survey) of firms’ investments in quality dimensions and the links to sales.FindingsOur findings reveal the existence of 21 new and emerging dimensions through which consumers measure product quality, all of which complement Garvin’s dimensions. These dimensions contribute to a fresh and modern interpretation of quality. Although there are 29 dimensions of quality in total, firms should shape their strategies by focusing on usability, customization, efficiency, innovation, performance, perceived quality, serviceability, pricing, conformance quality, ethics, and sustainability. These dimensions align with consumer wants and positively correlate with firms’ sales.Originality/valueThis research identifies novel and contemporary dimensions of quality, serving to complement the eight dimensions previously delineated by Garvin (1987). Consequently, it contributes to updating the operations management literature on Total Quality Management, 36 years subsequent to the introduction of Garvin’s foundational dimensions.

A hybrid model for shop floor simulation and work-in-process feedback control

In this paper, a smart hybrid model for shop floor simulation and control is proposed based on dynamic modelling and control theory’s analytical tools. The model is smart because the production levels are automatically adjusted based on feedback loops, considering shop floor current states (i.e., it is a closed-loop model). It is hybrid because it deals with discrete and continuous transitions, and integrates two approaches: switched arrival systems (SAS) and bond graphs (BG). This novel integrated SAS + BG model is applied to a production system in the food industry and four production control rules (well-known from the operations management literature) are tested: pure push and pull rules and extended push and pull rules. The results showed that the SAS is effective to dynamically represent intermittent production systems, and its use, coupled with bond graphs, allows the definition of capacity adjustment and production control rules that are effective to control the work in process (WIP). The extended pull rule outperformed the remaining ones, corroborating prior literature. This paper contributes with a novel approach that is modular and can be extended to represent the closed-loop dynamics of different configurations of multi-product multi-station production systems, with a disaggregated level of detail.

Do mid‐level providers enhance hospital cost per discharge or triple aim performance efficiency? An exploratory analysis

AbstractHospital administrators are shifting care delivery models toward an approach that uses more caregivers in the form of mid‐level providers (MLPs), such as nurse practitioners, physician assistants, and clinical nurse specialists. To date, however, healthcare operations management (OM) literature remains ambiguous about longitudinal empirical associations between mid‐level providers and hospital costs, quality, and other performance measures. We analyze how the extent of MLP employment used by a hospital is associated with hospital operational outcomes, as reflected by hospital cost per discharge and Triple Aim Performance (TAP) efficiency metrics. Our findings indicate percent MLP usage is positively associated with efficiency metrics for hospital clinical quality, technical efficiency, and patient experience, but not associated with hospital costs. We also find percent MLP usage is associated with the likelihood that hospitals excel on all TAP metrics simultaneously. Post‐hoc exploratory analyses suggest the associations exhibit differential outcomes across hospital efficiency quantiles, while sub‐sample analyses motivate boundary conditions for some hypothesized MLP associations. We contribute to healthcare OM research by providing one of the first panel data analyses of MLPs, improving insights relative to extant work. By giving key stakeholders useful findings about outcomes associated with hospital staffing trends, our managerial contribution helps hospital administrators understand empirical consequences of the increasing use of MLPs.

Blending logics with performance management systems in an NGO setting

PurposeThis study aims to examine the role of performance management systems (PMSs) in enabling logic blending to manage institutional complexity and tensions arising from coexisting institutional logics.Design/methodology/approachThis research uses a case study of an Australian non-government organisation (NGO) operating in an institutional field dominated by the state government, in which policy reform jolted the balance between institutional logics. Data was collected through semi-structured interviews, archival documents and observations.FindingsWe find the policy reform required the NGO to transform from a wholly care focus to accommodate a more balanced approach with a focus on care coupled with efficiency, outcome delivery and performance measurement. The NGO responded by revising its purpose, strategy and operational model and by seeking to address the imperatives of two dominant and often competing care and managerial logics. We find this was achieved through logic blending, in which PMSs played a pivotal role, with the formalisation and collaboration processes mobilising different elements of PMSs, mobilising some elements differently or not mobilising some elements at all.Originality/valueThis study highlights the central role of PMSs in managing tensions between and the complexity arising from coexisting institutional logics through logic blending, a form of enduring compromise. This study extends the accounting logics and performance management literature by developing the understanding of what constitutes logic blending and how it is distinct from other forms of compromise.

How Do Curbside Feedback Tactics Impact Households’ Recycling Performance? Evidence From Community Programs

Much of the responsibility for advancing the circular economy has been directed towards firms, yet many reuse opportunities can only be achieved through environmentally compliant, household-level recycling behaviors. In response, policymakers and recycling organizations are using a range of feedback mechanisms to promote household recycling that meets local quality standards. However, the effectiveness of these tactics remains unclear, and stakeholders are divided on the appropriateness of their use. In this research, we examine the role of two popular feedback mechanisms—information-only and information-plus-penalty—in correcting households’ curbside recycling behaviors. With information-only feedback, households are provided with best practices for recycling and are not penalized for their errors. With information-plus-penalty feedback, households also receive information, but temporarily forfeit their recycling services. While previous studies have explored the use of information and penalties as feedback mechanisms to guide behavioral changes, there is mixed evidence of their effectiveness, particularly in the recycling context. We address this research gap by analyzing unique data collected from a 2019 curbside auditing effort that occurred in a large, Mid-Western city. Our analysis leverages econometric methods, and recycling feedback and performance data from 25,359 audits across 11,899 households and 15 recycling routes. We find that information-only feedback mechanisms, while preferred by some stakeholders, are not associated with improvements in recycling quality (measured using household contamination rates). By contrast, our results indicate that punitive mechanisms (i.e., information-plus-penalty) involving cart refusals are associated with significant reductions in contamination rates: that is, households that receive punitive feedback reduce their contamination rate severity by 59%, and are 75% less likely to commit a violation in the future. More importantly, we do not find evidence that punitive feedback mechanisms generally discourage households’ participation in recycling programs (measured using future set out rates). Our study informs sustainable operations management literature by investigating how curbside feedback mechanisms, with differing levels of severity, influence critical dimensions of households’ recycling performance (i.e., recycling quality and participation). We also inform policymakers on how curbside feedback mechanisms can be more effectively leveraged to enhance opportunities for material reuse.

The impacts of automation and augmentation AI use on physicians’ performance: an ambidextrous perspective

PurposeDue to the rapid development of artificial intelligence (AI) technology, increasing the use of AI in healthcare is critical, but few studies have explored the extent to which physicians cooperate with AI in their work to achieve productive and innovative performance, which is a key issue in operations management (OM). We conducted empirical research to answer this question.Design/methodology/approachWe developed a conceptual model based on the ambidextrous perspective. To test our model, we collected data from 200 Chinese hospitals. One senior and one junior physician from each hospital participated in this research so that we could get a more comprehensive view. Based on the sample of 400 participants and the conceptual model, we examined whether different types of AI use have distinct impacts on physicians’ productivity and innovation by conducting hierarchical regression and post hoc tests. We also introduced team psychological safety climate (TPSC) and AI technology uncertainty (AITU) as moderators to investigate this topic in further detail.FindingsWe found that augmentation AI use is positively related to overall productivity and innovative job performance, while automation AI use is negatively related to these two outcomes. Furthermore, we focused on the impacts of the ambidextrous use of AI on these two outcomes. The results highlight the positive impacts of complementary use on both outcomes and the negative impact of balance on innovative job performance. TPSC enhances the positive impacts of complementary use on productivity, whereas AITU inhibits the negative impacts of automation and balanced use on innovative job performance.Originality/valueIn the age of AI, organizations face greater trade-offs between performance and technology management. This study contributes to the OM literature from the perspectives of operational performance and technology management in three ways. First, it distinguishes among different AI implementations and their diverse impacts on productivity and innovative performance. Second, it identifies the different conditions under which automation AI use and augmentation are superior. Third, it extends the ambidextrous perspective by becoming an early adopter of this approach to explore the implications of different types of AI use in light of contingency factors.

The contradictory effect of lean and industry 4.0 synergy on firm performance: a meta-analysis

PurposeWhile previous operations management literature acknowledges the positive influence of Lean and Industry (I4.0) on performance, recent studies examining the synergy between these two factors have produced inconsistent and contradictory results. Therefore, this study aims to provide a comprehensive understanding of the effect of Lean and I4.0 synergy on firm performance.Design/methodology/approachThis study utilised a meta-analysis approach, examining 23 empirical studies exploring multiple effects of the Lean and I4.0 synergy on firm performance. Multiple subgroup analyses were conducted to assess the contradictory outcomes and identify in what conditions such synergy may achieve performance.FindingsThe results affirm the prevailing positivist perspective among most scholars regarding the positive influence of the Lean and I4.0 synergy on firm performance. However, the overall effect size derived from the studies indicates a weak relationship, suggesting that this synergy alone is not the sole determinant factor of firm performance. In addition, the subgroup analyses reveal the presence of contingent conditions that may affect the performance outcomes when integrating Lean and I4.0, as most effects exhibit a weak relationship.Originality/valueThis study represents the first meta-analysis investigating the relationship between the Lean and I4.0 synergy on firm performance. By shedding light on the contradictory effects often depicted in the operations management literature, this study provides a critical reflection for researchers who tend to adopt an overly optimistic view of such synergy.

A structured process for the fuzzy front-end of complex projects

The front-end stage of projects, which covers the period from inception through to project approval, is not well understood in the literature and is considered ‘fuzzy’. Therefore, the objective of this paper is to develop a structured process for the project front-end stage of complex projects. In this study, the rigorous and protracted front-end process followed by Australian Defence acquisition and development projects is analysed. Findings propose a front-end process that consists of the following four steps: (1) project trigger identification, (2) project idea generation, (3) business case development, and (4) business case appraisal. We further detail the activities included in each step and propose practical implications for operations managers and the organisation. By structuring the front-end process, our research contributes to the operations management literature by clarifying roles, responsibilities, and activities in the management of the front-end of complex projects and their alignment with the operations’ environment.

Metaverse: Value creation and performance measurement across physical and digital world

This study provides a first conceptualization of the Metaverse from a strategic management perspective and advances performance measurement approaches for the Metaverse value creation. Specifically, the study aims to provide an in-depth analysis of Metaverse and the related implications on the value creation processes of the companies. In order to achieve this goal, we performed a detailed literature review on digital transformation, Metaverse and performance measure-ment topics. Thus, we have developed a theoretical framework useful to facilitate the implementation of successful strategies in the Metaverse and subsequent mon-itoring and evaluation of achieved results. The paper provides relevant contributions in theory and practice. From a theoreti-cal perspective, the results contribute to the strategic management and perfor-mance management literature streams, extending them to the dimension of the "digital world". From a practical perspective, the results identify new performance measurement and new indicators useful for companies and practitioners to under-stand the link between Metaverse and value creation paths. Future studies should integrate the theoretical analysis with explorative empirical investigations.

Made Better by Others? When Having More Diverse Colleagues Improves Individual Outcomes

Research suggests that workgroup diversity influences various group and organizational-level outcomes. However, few studies consider its impact at the individual level, particularly in knowledge-related work, where workers have considerable discretion in making decisions. Our study aims to fill this gap by examining two significant types of workgroup diversity—gender diversity, a kind of bio-demographic diversity, and specialization diversity, a kind of job-related diversity—in a healthcare setting. Using detailed data on the entire patient population of Florida hospitals (10.14 million patients), including 25,187 physicians across 240 hospitals over a period of 4 years, we find that physicians who work in departments with more diverse colleagues (in terms of gender and specialization) have better patient outcomes, for example, a shorter stay, lower cost of treatment and increased likelihood of discharge to home. We find that the impacts of colleague diversity are contingent on departmental focus. Our research shows that specialization diversity, a type of job-related and deep-level difference, especially helps physicians who work in more specialization-diverse departments perform better when their departments are less focused. In contrast, we find that physicians in more gender-diverse departments perform even better when in more focused departments. Our results are robust to alternate explanations and biases arising from patient selection, population demographics, and endogeneity in diversity measures. Our study adds to a relatively small literature in operations management that considers how workgroup diversity (beyond diversity in on-the-job experience) might influence individual performance. Our research also contributes to the emerging conversation on why hiring managers should actively work toward improving workplace diversity.

Research in Diversity: Lessons for Operations Management From the Women's Studies Field

We postulate that the study of diversity, equity, and inclusion can deepen and add relevance to research in operations management (OM). Specifically, the role of gender is little studied in the existing OM literature—to the detriment of the field. This article considers OM issues by employing the theories, data, and topics from the field of Women's Studies. Our findings indicate that incorporating viewpoints from Women's Studies can change what is considered research, improve the accuracy of OM research, extend existing studies in the field through new parameters, and open new areas of inquiry.

Seeking and Exploiting Synergies Among the UN Sustainability Development Goals: Research Opportunities for Operations Management

In 2015, the United Nations (UN) countries signed up to achieve 17 sustainable development goals (SDGs) for people, planet, prosperity, peace, and partnership by 2030. However, the trend of progress toward achieving these goals indicates that none of the 17 goals may be achieved by 2030 globally. We first provide La foundation for operations management (OM) researchers to help shape the interventions for countries and companies to help achieve the SDGs by (1) identifying the synergies among the SDGs so that interventions can impact multiple SDGs positively and (2) linking some of the extant OM research with the synergies among the various SDGs. This way, researchers can understand the complexity of the challenges ahead and build on the OM literature to influence the interventions of governments and organizations to maximize the attainment of the SDGs. We also list some research opportunities to help OM researchers develop research agendas.