Operations Management Research Research Articles

Supply Chain Tsunamis: Research on Low Probability High Impact Disruptions

This paper introduces supply chain tsunamis as a major strategic supply chain phenomenon. Like their ecological counterparts, supply chain tsunamis occur at relatively long intervals and are therefore easily mistaken for unique events, rather than recurring phenomena. In contrast to ocean tsunamis, they can in principle be prevented through timely and adequate managerial action. However, their immediate impact is just as sudden and disruptive, and their ability to reshape supply chains of companies and even industries equally long-lasting. They are fundamentally different from phenomena like the “bullwhip effect” (Lee et al., 1997) and “black swan events” (Taleb, 2007). This paper further explores a preliminary typology of supply chain tsunamis suggested in an earlier publication (Akkermans and Van Wassenhove, 2013). Each type of tsunami focuses on a very different part of the supply chain periphery where the first signals of a developing tsunami can be observed. In this paper we use a detailed example from the high-tech electronics industry to describe how a supply chain tsunami unfolds over time. This is done both from an external and an internal perspective. The external perspective shows the sequence of events visible to the outside observer. The internal perspective focuses on the managerial decisionmaking processes that cause and (sometimes) resolve supply chain tsunamis. We link the notion of supply chain tsunamis to the broader need to revive strategic operations management research. Supply chain tsunamis affect corporate strategy and have a profound impact on business and management. They are living proof that operations remain, after almost half a century, the “missing link in corporate strategy” (Skinner, 1969). Therefore, we argue that business tsunamis deserve deeper research and suggest some avenues.

OM Forum—Causal Inference Models in Operations Management

Operations management (OM) researchers have traditionally focused on developing normative mathematical models that prescribe what managers and firms should do. Recently, there has been increased interest in understanding what managers and firms actually do and the factors that drive these decisions. To advance this understanding, empirical investigation using causal inference models is critical. However, in many contexts, the ability to obtain causal inferences is fraught with the challenges of endogeneity and selection bias. This paper describes five empirical tools that have been widely used in economics to address these challenges and how they can be adopted by OM researchers. We also present an example that illustrates how the various attributes of big data—variety, velocity, and volume—can be useful in addressing the endogeneity bias.The online appendix is available at https://doi.org/10.1287/msom.2017.0659 .

Strategy and organization research in operations management

In a September 2015 editorial (Guide and Ketokivi, 2015), the co-editors-in-chief of the Journal of Operations Management restructured the management of submissions into departments by substantive domain. This essay expands upon their brief description of the Strategy and Organization Department. While chiefly seeking to clarify what we see as the department's content domain, we also offer insights on how to maximize the contribution of operations management research to the strategy and organization literature.

Environmental sustainability and production: taking the road less travelled

The research on production and operations management and its linkage to environmental sustainability has seen growth in recent years. The International Journal of Production Research (IJPR) community of scholars has contributed to the advancement of this field. This paper provides an overview of how the research in IJPR has evolved alongside the social-environmental evolution. An overview of the literature of the past 55 years, especially more recent works, is provided. Future predictions of research topics and influences are introduced. Overall, this review found that the call for incorporating environmental sustainability into production research goes back for decades to the early years of IJPR publications. Recent work shows a broader perspective on production research expanding to inter-organisational, supply chain, research. This expanded focus is especially evident in environmental sustainability research. There is still a need and call for expanding the horizon of production and operations management research and environmental sustainability. Travelling the road less travelled is more difficult and complex, but the rewards at the end of this road are a healthy society and environment.

A Review of Choice Modeling in the Marketing-Operations Management Interface

The operations management discipline has made substantial progress developing analytical models to help firms make tactical and strategic decisions (e.g., inventory control, assortment planning). The application of these models to real contexts requires several inputs, such as an estimate of the benefits and costs of various levels of the operational decision under study. It is often the case that the associated benefits depend on how customers react to changes in the operational decisions being modeled. This in turn requires an empirical validation of the consumer model that serves as an input when making operation decisions. Bringing together researchers from economics, marketing and operations management, this paper reviews and discusses recent findings in terms of modeling and empirically validating consumer choices in response to operational decisions. We structure this discussion along four major operational decisions and issues: product variety (including inventory and assortment), service capacity, pricing and supply chain coordination. For each of these areas, we review recent work and identify challenges that we believe are important to address in future research aimed at connecting operations management research to practice.

OM Forum—Three Simple Approaches for Young Scholars to Identify Relevant and Novel Research Topics in Operations Management

The revolution in information technology has provided the research community in operations management (OM) with new areas to explore and many new avenues to develop. In recognition of this, many editors of OM journals strive to publish new ideas. These two forces generate strong motivation, but many young OM scholars find it difficult to find new OM research ideas. To address this challenge, I describe three simple thought processes (or approaches) that I have learned and used to identify new research topics over the last 35 years. These approaches are as follows: (1) observe and learn to develop “problem-based” research, (2) ask “whys” to develop “phenomenon-based” research, and (3) sketch graphs to develop “insight-based” research. Clearly, these simple approaches are neither complete nor optimal; however, I share these personal thought processes with the hope of contributing to discussions as to how the next generation of OM researchers can build upon and expand the remarkable impact that our field has had and will continue to have.

The reference effect in newsvendor model with strategic customers

PurposeThe purpose of this paper is to discuss the role of reference effect on newsvendor’s decision behavior in a market with strategic customers and work out the newsvendor’s optimal pricing policy and ordering quantity.Design/methodology/approachThis study utilizes the prospect theory and strategic customer framework to analyze the decision-making behavior on the newsvendor’s optimal pricing policy and ordering quantity. The paper further presents an extension of newsvendor model and provides the model’s properties. The paper finally analyzes the results with various parameters on the model and reports on the insights generated by the model.FindingsThe paper indicates that the ordering quantity is not altered with the changing proportion of strategic customers and myopic customers, but the ordering quantity and the pricing strategy are influenced in terms of newsvendor’s reference effect, loss aversion, product cost, and salvage price.Practical implicationsThe research findings have important implications for decision makers. Previous researches have studied the incomplete rationality newsvendor’s decision-making behavior mainly by analyzing the vendor’s risk preferences or loss aversion, but the effect of reference point also plays an important role in analyzing the decision-maker’s behavior. The paper provides the optimal pricing policy and ordering quantity with the reference effect considering the strategic customers behavior. This model is also a valid complementarity to behavioral operations management research area.Originality/valueThe paper examines the role of reference effect in newsvendor problem with the strategic customers and analyzes the impact of parameters such as loss aversion on the newsvendor’s decision behavior.

Ddi Tool: A serious game for the development of competences of graduate and postgraduate students in the Operations Management environment

<p class="Abstract">A serious game known as Ddi Tool is presented by the authors to improve the competences on Operations Management of graduate and postgraduate students. The game is applied to the resolution of multistage industrial processes allowing to have a global vision of the manufacturing process and combining the students’ skills on operations management research and learning. The tool allows also to perform an economic evaluation of the whole process by means of the process costs analysis and improving this cost as function of the main process variables and parameters: raw material, workforce, energy consumption, etc. The game has been generated using Java language with a user-friendly interface for a quick comprehension by the student during the practical classroom. In this manner, the tool allows developing competencies to students applying and developing scientific, technological, mathematical, economical and sustainable knowledge.</p>

An innovative algorithm for planning and scheduling healthcare units with the aim of reducing the length of stay for patients (Case study: Cardiac SurgeryWard of Razavi Hospital of Mashhad)

One of the key applications of operational research in health systems management is to improve the mechanism of resource allocation and program planning in order to increase the system efficiency. This study seeks to offer an innovative method for the planning and scheduling of health service units with the aim of reducing the patients' Length of Stay (LOS) in the Cardiac Surgery Ward of Razavi Hospital of Mashhad. Also, to estimate the patients' LOS, two methods have been applied: multiple One of the key applications of operational research in health systems management is to improve the mechanism of resource allocation and program planning in order to increase the system efficiency. This study seeks to offer an innovative method for the planning and scheduling of health service units with the aim of reducing the patients' Length of Stay (LOS) in the Cardiac Surgery Ward of Razavi Hospital of Mashhad. Also, to estimate the patients' LOS, two methods have been applied: multiple linear regression models and Bayesian networks. The introduced method takes into account all treatment processes of patients in an integrated system and by eliminating any undue waiting time, the length of stay can be reduced to a significant extent. Also, the system efficiency is considerably improved by resolving the current conflicts in the workflow of on-call physicians and optimum allocation of resources, gaining satisfaction of health sector officials and patients. linear regression models and Bayesian networks. The introduced method takes into account all treatment processes of patients in an integrated system and by eliminating any undue waiting time, the length of stay can be reduced to a significant extent. Also, the system efficiency is considerably improved by resolving the current conflicts in the workflow of on-call physicians and optimum allocation of resources, gaining satisfaction of health sector officials and patients.

Addressing the endogeneity dilemma in operations management research: Theoretical, empirical, and pragmatic considerations

In this paper, we examine the problem of endogeneity in the context of operations management research. Whereas the extant literature has focused primarily on the statistical aspect of the problem, a comprehensive treatment requires an examination of theoretical and pragmatic considerations as complements. The prevailing problem with the focus on statistical techniques is that the standards tend to be derived from idealizations: the correlation between a regressor and a disturbance term must be exactly zero, or the analysis will be invalid. In actual empirical research settings, such a knife-edge assumption can never be satisfied, indeed it cannot even be directly tested. Idealizations are useful in helping us understand what it would take to eliminate endogeneity, but when applied directly and unconditionally, they lead to unreasonable standards that may unnecessarily stifle substantive inquiry. We believe that it is far more productive and meaningful to ask: “What can we realistically expect empirical scientists to be able to achieve?” To this end, we cover and revisit some of the general technical material on endogeneity, paying special attention to the idiosyncrasies of operations management research and what could constitute reasonable criteria for addressing endogeneity in empirical operations management studies.

Research in global operations management: some highlights and potential future trends

PurposeThe purpose of this paper is to shortly overview the research in international operations management (OM), to provide background to the papers published in this special section.Design/methodology/approachAs a literature review, the paper investigates the past, present, and future of international OM. It is not a systematic review; the paper just highlights the most important international operational management research networks, streams and concepts in the field.FindingsThe paper finds that there is a time lag in the field of international OM compared to other research areas within international business and management. It provides some ideas for the future to be researched.Originality/valueThe paper gives a focused review on international research networks which has not been done before. It also identifies two different streams of researches in international OM: the stream investigating OM differences among geographical areas, and the stream dealing with issues of international manufacturing networks.

Ambidextrous leadership, entrepreneurial orientation, and operational performance

PurposeThe purpose of this paper is to investigate the role of ambidextrous leadership in fostering entrepreneurial orientation (EO) and operational performance. The research also seeks an insight into the moderating role that organizational social capital (OSC) plays on the relationship between ambidextrous leadership and EO.Design/methodology/approachThe responses to the questionnaire survey were collected from 427 managers from software companies in Vietnam business context.FindingsThe data analysis verified the positive effect of ambidextrous leadership on EO, which was positively moderated by OSC. The research results also shed light on the predictive role of EO for the organization’s operational performance.Originality/valueThis research contributes to literature through identifying the convergence of entrepreneurship and operations management research streams, and the moderation role of OSC for the ambidextrous leadership-EO relationship.

Creativity and the Management of Technology: Balancing Creativity and Standardization

This thought piece represents an opportunity to integrate creativity and operations management (OM) research, and in particular the management of technology (MOT), to stimulate thinking and drive research across disciplines. Specifically, we discuss how there is an inherent tension when considering how work is organized and performed given that the majority of today's jobs require a certain degree of following routinized procedures, while some level of creativity is desirable as well. Therefore, there is the need to balance standardization with the desire for creativity, and this represents an inherent paradox. Here, we propose applying a creativity lens to the work categories used in OM, and discuss the implications of considering creativity as a process and an outcome that ranges along a continuum from incremental to radical. Our goal is to start a conversation that integrates the organizational creativity literature with OM and the MOT, and in doing so leads to future research and new developments in each of these literatures.

Review on Using System Dynamics in Designing Work Systems of Project Organizations

System dynamics research has been introduced to some management fields including operations management, organizational behavior, project management, and market uncertainties research. This paper highlights the use of system dynamics in modeling work system design of projects' organizations seeking better projects behavior. This paper provides a review on system dynamics in product development projects exploring managerial and organizational factors influencing projects' behavior and probability of success. The review includes three different yet intermingling fields; organization's work system design, project management in projects' organizations, along with system dynamics. This paper proposes guiding method to explore how to use system dynamics in projects' work system design and development.

Socially and Environmentally Responsible Value Chain Innovations: New Operations Management Research Opportunities

By examining the state of operations management (OM) research from 1980 to 2015 and by considering three new industry trends, we propose new OM research directions in socially and environmentally responsible value chains that fundamentally expand existing OM research in three dimensions: (a) contexts (emerging and developing economies); (b) objectives (economic, environmental, and social responsibility); and (c) stakeholders (producers, consumers, shareholders, for-profit/nonprofit/social enterprises, governments, and nongovernmental organizations). In this paper, we describe some examples of this new research direction that are intended to stimulate more exciting OM research, to contribute to the economic and social well-being of both developing and developed economies. This paper was accepted by Teck-Hua Ho, operations management.

Predictive maintenance: strategic use of IT in manufacturing organizations

A combination of big data and predictive analytics orchestrated through the Internet of Things (IoT) offers many opportunities for researchers in Information Systems, Operations Management and Strategy to look at old problems in new ways, and to identify completely new research areas. While there is much hype, little research has been conducted that informs companies about how to profitably integrate the IoT with strategic or operational processes. This paper views the IoT through the lens of predictive maintenance -- the use of real-time data and predictive analytics algorithms to dynamically manage preventive maintenance policies. These are being used by numerous manufacturing organizations to transition from product-oriented to service-oriented business models. In particular, we analyze optimal preventive maintenance policies in an environment where equipment is subject to a deterioration, which shifts it from its initial, fully-productive state, having a specified, age-dependent failure rate to a less-productive or deteriorated state, having a different, presumably higher, age-dependent failure rate. The deterioration, itself, is a random process.

Cluster analysis in empirical OM research: survey and recommendations

PurposeThe purpose of this paper is twofold. First, the authors provide a survey of operations management (OM) research applications of traditional hierarchical and nonhierarchical clustering methods with respect to key decisions that are central to a valid analysis. Second, the authors offer recommendations for practice with respect to these decisions.Design/methodology/approachA coding study was conducted for 97 cluster analyses reported in six OM journals during the period spanning 1994-2015. Data were collected with respect to: variable selection, variable standardization, method, selection of the number of clusters, consistency/stability of the clustering solution, and profiling of the clusters based on exogenous variables. Recommended practices for validation of clustering solutions are provided within the context of this framework.FindingsThere is considerable variability across clustering applications with respect to the components of validation, as well as a mix of productive and undesirable practices. This justifies the importance of the authors’ provision of a schema for conducting a cluster analysis.Research limitations/implicationsCertain aspects of the coding study required some degree of subjectivity with respect to interpretation or classification. However, in light of the sheer magnitude of the coding study (97 articles), the authors are confident that an accurate picture of empirical OM clustering applications has been presented.Practical implicationsThe paper provides a critique and synthesis of the practice of cluster analysis in OM research. The coding study provides a thorough foundation for how the key decisions of a cluster analysis have been previously handled in the literature. Both researchers and practitioners are provided with guidelines for performing a valid cluster analysis.Originality/valueTo the best of the authors’ knowledge, no study of this type has been reported in the OM literature. The authors’ recommendations for cluster validation draw from recent studies in other disciplines that are apt to be unfamiliar to many OM researchers.

Playing the Indicator Game: Reflections on Strategies to Position an STS Group in a Multi-disciplinary Environment

Roland Bal analyzes the strategies his research group developed to deal with the interlinked dynamics of research evaluation in a multi-disciplinary institutional environment characteristic of much STS research. Scholars in such environments constantly need to navigate and negotiate the standards of evaluation, in complex choreographies of cooperation and competition with other disciplinary groups. Bal describes strategies his group has successfully used, and how these strategies have both shifted the way research quality is assessed within the department as well as changed the way his group works and publishes. In conclusion, he describes performance management systems and research practices as co-constituted and calls for a debate on which forms of evaluation infrastructures allow for better ways of doing research in STS.

Linking QFD and the manufacturing network strategy

PurposeThe purpose of this paper is to integrate the manufacturing site and network perspectives for the purposes of strategy fulfilment, which has rarely been jointly discussed. By doing this, the site and network perspectives are broken into their constituents and linked to one another.Design/methodology/approachThe paper provides qualitative research; it conducts a comprehensive literature review and merges the results with the concept of the quality function deployment to link the relevant dimensions. The developed framework is discussed based on a single case study.FindingsThe proposed framework relates the network and site perspectives in different dimensions, which range from the strategic dimension to the network and site dimensions. The paper, furthermore, offers the groundwork of developing relationship maps of the site and network capabilities, network configuration and coordination, and the structural and infrastructural dimensions.Research limitations/implicationsThe paper contains a single case study and lacks foundation with a broader data set.Practical implicationsThe results support the decision-making process of the manufacturing network managers who assess, design, and develop their manufacturing networks and attempt to gain transparency by using different levels of analysis.Originality/valueThe paper is the first attempt to show how the different network and site capabilities contribute to strategy fulfilment, to link the configuration and coordination dimensions of the manufacturing network level, and to link the structural and infrastructural dimensions on the site level. Thus, the authors add to multilevel research in operations management because the authors provide a combined framework for the network- and site-level analysis.

Collaborative networks as incubators of dynamic virtual organisations: a case study of the emerging MAP sector

This research explores development requirements and policy arguments in the emerging medicinal and aromatic plants (MAP) sector. Supported by a reference model adapted from the European Collaborative networked Organisations LEADership (ECOLEAD) project, the creation of a virtual organisation (VO) breeding environment (VBE) is also assessed using a qualitative exploratory case study involving an EPAM (Entrepreneurship-in-MAP project) IT-platform, where data was collected from the EPAM website and from multiple secondary sources. Contributions to practice include the setting of critical success factors, the assessment of management roles and the discussion of the MAP-VBE positioned within the scope of EPAM. While the introduction of a 'neutral mediator' role constitutes a contribution to theory, innovative insights into MAP structuring promotes operations management research on VO incubation/formation in nascent and emerging industry contexts.