Strategic Cognition of Operations Executives

The nature of operations executives’ strategic cognition, as the antecedent to their choices about operations strategy, remains underexplored in the literature. This mixed‐methods study examines executives’ thinking about supply chain strategy through the lens of managerial cognition. Our qualitative study at a pharmaceutical distributor, which examined 25 executives’ outlook on the future of the turbulent U.S. healthcare sector and their suggestions for adapting the company's supply chain strategy to that future, suggests that an executive's strategic cognition can be defined by its regulatory focus—whether the executive envisions the future environment in terms of opportunities or threats—and the level of optimism in regards to the envisioned future. We propose a typology that predicts the strategic choices of operations executives based on four types of cognition: pioneering, pushing, protective, and provocative. It describes whether an executive's strategic choices target traditional or novel sources of revenue, and if they seek to influence either the firm's structure and practices or its environment. Our empirical test of the typology using quantitative data collected in a survey of senior operations executives supports the study's propositions associating three of the four types of cognition with their respective preferred strategic choices.     

Exploring Strategic Positioning in the UK Charitable Sector: Emerging Evidence from Charitable Organizations that Provide Public Services

The UK voluntary sector operates in an arguably enabling policy context. Yet, other external environmental influences have posed major challenges for charitable organizations within the wider voluntary sector. This paper aims to rectify the current lack of empirical research on how charitable organizations have responded in terms of their strategic positioning to the changing external operating environment and policy context. It both explores the positioning strategies adopted by two contrasting British charities that deliver public services in different ways, and investigates the factors that have influenced their choice of positioning strategies. The cases studied extend our knowledge of strategic positioning in organizations other than commercial (for-profit) ones. The findings provide new evidence that charities have begun to strategically position themselves in response to both internal organizational factors and external environmental influences. Emerging lessons from the experiences of the case study organizations provide guidance to charity managers in planning and implementing strategic positioning in their organizations. The findings also underscore the need to develop theoretical and conceptual management models specific to non-profit organizations, such as charities.     

Adaptive Tactical Pricing in Multi‐Agent Supply Chain Markets Using Economic Regimes

In today's complex and dynamic supply chain markets, information systems are essential for effective supply chain management. Complex decision making processes on strategic, tactical, and operational levels require substantial timely support in order to contribute to organizations' agility. Consequently, there is a need for sophisticated dynamic product pricing mechanisms that can adapt quickly to changing market conditions and competitors' strategies. We propose a two‐layered machine learning approach to compute tactical pricing decisions in real time. The first layer estimates prevailing economic conditions—economic regimes—identifying and predicting current and future market conditions. In the second layer, we train a neural network for each regime to estimate price distributions in real time using available information. The neural networks compute offer acceptance probabilities from a tactical perspective to meet desired sales quotas. We validate our approach in the trading agent competition for supply chain management. When competing against the world's leading agents, the performance of our system significantly improves compared to using only economic regimes to predict prices. Profits increase significantly even though the prices and sales volume do not change significantly. Instead, tactical pricing results in a more efficient sales strategy by reducing both finished goods and components inventory costs.     

An Exploratory Study of Procurement Strategies for Multi‐Item RFQs in B2B Markets: Antecedents and Impact on Performance

This research explores procurement strategies for multi‐item requests for quotation (RFQs) in business‐to‐business (B2B) markets using responses from 825 purchasing professionals. The study first establishes procurement strategies that differ based on their level of strategic emphasis, i.e., the importance that is placed on the pursuit of four strategic objectives. Underlying objectives, which are obtained via factor analysis, include the focus on price, security of supply, internal procurement efficiencies, and bundle building. Next, cluster analysis is used to derive prototypical strategic approaches. The three cluster groups that emerge possess the same relative ranking of the four objectives, but differ based on the intensity with which these objectives are pursued. The clusters are labelled as the three strategic groups of strategists, opportunists, and responders. The research then explores, using an industrial buyer behavior lens, the impact of environmental antecedents in determining a particular strategy. Environmental variables include purchase importance, market uncertainty, supply base availability, buyer bargaining power, item experience, and supply base experience. Finally, the study tests the impact of procurement strategy on the buyer's perceived performance, suggesting that strategists, placing more emphasis on the pursuit of strategic sourcing objectives, achieve better performance than opportunists and responders.     

A simulation testing and analysis of aggregate production planning strategies

In this study, a hybrid discrete event simulation (DES) and system dynamics (SD) methodology is applied to model and simulate aggregate production planning (APP) problem for the first time. DES is used to simulate operational-level and shop-floor activities incorporated into APP and estimate critical time-based control parameters used in SD model of APP and SD is used to simulate APP as a collection of aggregate-level strategic decisions. The main objective of this study is to determine and analyse the effectiveness of APP strategies regarding the Total Profit criterion by developing a hybrid DES–SD simulation model for APP in a real-world manufacturing company. The simulation results demonstrated that the priority of APP strategies with regards to Total Profit criterion is: (1) the pure chase strategy, (2) the modified chase strategy, (3) the pure level strategy, (4) the modified level strategy, (5) the mixed strategy and (6) the demand management strategy, respectively. The APP system is first simulated under mixed strategy (basic scenario) conditions to include all APP capacity and demand options in constructed SD simulation model to show a comprehensive view of APP components and their interdependent interactions. Then, the obtained results will be used as Total Profit measure to compare with system's performance under some experimental scenarios applying different APP strategies.     

The Case for Managerial Ruthlessness1

This paper summarizes relevant literature and reports on a study which has examined the behaviour and attributes of managers in British mid-sized companies in which growth is a strategic objective. The study used a grounded, interpretive methodology, which allowed the development of theoretical propositions which have not been subject to previous empirical examination. This paper deals with one aspect of the findings, namely ruthlessness on the part of managers in dismissing or otherwise dealing with poorly performing members of staff. This aspect of management was an important factor in the subject organizations' ability to achieve their chosen strategy, and is a phenomenon which does not appear to have been developed in any previous models of effective managerial behaviour. Managerial ruthlessness influences strategic implementation in a number of ways – it affects control of the organization, team building and the ability to respond to changes in the environment or undo mistakes in appointments. This paper also outlines attributes and characteristics of both the individual manager and the organization which allows ruthlessness to be developed and used effectively, for example self-confidence; the ability to ensure that criticism or dismissal is not seen as personal; the separation of work and social life; and the ability to focus on objectives rather than the person. Organizational support and training in such behaviour also appeared to be helpful contributors to the development of such behaviour.     

Content Validity of Measures of Abstract Constructs in Management and Organizational Research

It is argued that construct validity is content validity and that prior content validity is necessary for predictive validity. Too many measures of abstract (multicomponential) constructs in management and organizational research exhibit poor content validity or else lose much of their content validity following unnecessary statistical ‘purification’ to select items. The measures produce misleading empirical results and can lead to erroneous acceptance or rejection of hypotheses or entire theories. Both problems – inadequate content validation and unnecessary statistical purification – are illustrated here for two new measures of the construct of ‘export coordination’ ( Diamantopoulos and Siguaw , British Journal of Management, 2006, 17 (4), pp. 263–282). Corrections according to Rossiter's C‐OAR‐SE procedure for scale development are specified.     

Experience,Service Operations Strategy,and Services as Destinations: Foundations and Exploratory Investigation

This paper explores the customer experience paradigm as it pertains to service operations strategy and design. First, we operationally define and discuss the concept of customer experience. In this context, we propose a reframing of the strategic role of operations strategy as one of choreographing experience‐centric services. We then introduce the concept of services as destinations as an emerging business model for classifying experiential service strategies. Our conceptual typology of experience‐based strategies uses two dimensions: (1) the depth of use of experience as a source of value creation, ranging from brand experience to the services as a destinations business model, and (2) the degree of integration of experience internally within the firm. Using this conceptual typology, we develop five propositions and use multiple cases to illustrate firms' use of these experience strategies. Laying the groundwork for future research, we highlight insights from the qualitative, multiple‐case data as they pertain to service operations strategy and the business model that employs services as destinations. A number of questions for further research are suggested.     

R&D (Re)location and Offshore Outsourcing: A Management Perspective

The paper reviews and systematizes the management literature directly and indirectly related to (re)location of research and development (R&D), in the form of both insourcing and outsourcing. The focus in particular is on R&D offshore outsourcing and its main drivers, including locational constraints and opportunities, motives, strategic decisions and managerial challenges. The analysis synthesizes and links the main propositions and findings of the theoretical and empirical work to build an original management and strategy centred framework which looks at R&D (re)location from a client–vendor perspective. In this case, the client is the offshoring company, and the vendors are the firms located in the host country. The characteristics of the firms and locations considered vis‐à‐vis the offshoring firm's goals are examined, the strategies implemented, the management and organizational challenges that R&D offshore outsourcing entails, and the ways in which offshoring impacts on both home and host locations are investigated.     

Penrose's The Theory of the Growth of the Firm: An Exemplar of Engaged Scholarship

Edith Penrose's (1959) classic book, The Theory of the Growth of the Firm, made a substantial impact on strategic management research, especially in the context of the resource‐based view of the firm, and the ripple effects of her impact continue to unfold today in various disciplines. The book serves as a remarkably rich source of inspiration for scholarly research and a generative source of ideas, which are poised to be further developed. In this study, we examine Penrose's (1959) classic and provide: (1) the process by which this book came about; (2) a summary of its key ideas; (3) some implications for operations management research; (4) the subsequent impact of the book, in which we focus on mathematical models; and (5) a discussion of some of the research lessons learned from this exemplar of engaged scholarship. We invite management science and operations scholars to discover the rich scientific world of Edith Penrose and experience the product and process of her research creativity.     

Strategic intent in the management of the green environment within SMEs: An analysis of the UK screen-printing sector

What drives the environmental behaviour of companies is an under-researched and under-developed area of study, particularly in the context of small and medium enterprises (SMEs). This article investigates to what extent the responses by UK screen-printing companies to pressures to improve their environmental performance represented a deliberate attempt by senior managers to provide their organisations with a strategic competitive advantage.Using both a quantitative and qualitative approach, the research shows that the environmental responses of this sector tended to be reactive, defensive and driven by – and frequently limited to – legislative compliance. Even though companies accepted that there were potential commercial benefits to be gained from environmental action, there was very little evidence to indicate that managerial decisions were motivated by strategic intent or that managerial mindsets were tuned to the notion that a proactive environmental response could offer a competitive edge. The article discusses the management implications of this lack of strategic orientation and highlights how a more innovative response by companies could provide both demand and supply side benefits.     

Reviewing performance: an analysis of the structure and functions of performance management reviews

This article proposes an analytical framework for conceptualising performance management reviews (PMRs). Drawing on multiple literatures, the article applies Pettigrew et al.'s (Pettigrew, A., Whipp R., and Rosenfield R., 1989. Competitiveness and the management of strategic change processes. In: A. Francis, and P.K.M. Tharakan, eds. The competitiveness of European industry: country policies and company strategies. London: Routledge) framework to develop our understanding of the context, process and content of PMR. The process elements of PMRs are the levers for managerial intervention as they determine the immediate outcome of PMR. They accomplish this task by acting on the content elements, transforming the subject of PMR into specific outcomes. The scope of the intervention, however, is constrained by factors in the organisation's context. This framework sheds light on various functions of PMRs, most notably strategy implementation.     

Generic Strategies and Business Performance: an Empirical Study of the Screw Machine Products Industry

Select businesses in industry may attempt to compete through distinct strategies. But some may be successful in adopting distinct strategic profiles while others may not prove successful. In this study it was expected that six different groups of businesses might be present in the empirical exploration – those competing successfully with the low cost strategy and those competing unsuccessfully with this strategy; those competing successfully with the differentiation strategy and those competing unsuccessfully with this strategy; and those competing successfully with low cost and differentiation strategies and those competing unsuccessfully with these strategies. The results of the investigation portray the presence of three strategic profiles. They are unsuccessful low cost businesses with the lowest performance, unsuccessful differentiated businesses with the second lowest performance, and successful businesses with combination strategies with the highest performance.     

Changing Strategy Processes and Strategy Content in Public Sector Organizations? A Longitudinal Case Study of NPM Reforms’ Influence on Strategic Management

New Public Management reforms have been argued to intensify the use of strategic management in public organizations, but there is a need to understand how reforms influence specific aspects such as strategy processes and strategy content. The NPM reforms are expected to formalize and professionalize strategy processes and strategy content towards greater competitiveness, but this may counter cooperation between organizations, which is essential in many areas for overall service provision. Research has provided little empirical knowledge about the simultaneous competition and cooperation in the public sector. This study offers such knowledge via a panel case study of five Danish upper secondary schools over a ten‐year period during a large NPM reform. The study includes three rounds of interviews with school principals before, during and after the reform, combined with secondary data. The study shows that, during reform implementation, strategy processes become more formalized and professionalized, and that teachers, in particular, lose influence. Regarding strategy content, the authors find an increase in external focus and competition, though schools maintain a focus on cooperation. The results suggest that NPM reforms can significantly change strategic management in public organizations, and that this is not necessarily at the expense of cooperation, at least in the short run.     

Efficiency in Repeated Games Revisited: The Role of Private Strategies

Most theoretical or applied research on repeated games with imperfect monitoring has focused on public strategies: strategies that depend solely on the history of publicly observable signals. This paper sheds light on the role of private strategies: strategies that depend not only on public signals, but also on players' own actions in the past. Our main finding is that players can sometimes make better use of information by using private strategies and that efficiency in repeated games can be improved. Our equilibrium private strategy for repeated prisoners' dilemma games consists of two states and has the property that each player's optimal strategy is independent of the other player's state.     

Fit in strategic information technology management research: an empirical comparison of perspectives

The impacts of information technology on business performance has been a focus of research in recent years. In this regard, contingency models based on the notion of “fit” between the organization's management of IT, its environment, strategy, and structure seem to show promise. Six perspectives are examined as they pertain to the relationships between the firm's environmental uncertainty, its strategic orientation, its structure, its strategic management of IT, and its performance, namely moderation, mediation and matching as bivariate approaches to fit, and covariation, profile deviation and gestalts as systems approaches. These relationships are analyzed by means of an empirical study of 110 small enterprises. Results obtained from applying and comparing the six perspectives illustrate their significant differences and confirm the need for conceptual and methodological rigor when applying contingency theory in strategic information technology management research.     

Middle Managers Moulding International Strategy: An Irish Start-up in Jamaican Telecoms

This is a story of how a group of middle managers moved beyond just implementing their firm’s tightly prescribed strategy for developing an international venture to the point where it could be argued that they failed to accomplish the four clear strategic objectives set by the firm’s executive management. Instead, the authors suggest, their success was in collectively orchestrating an emergent strategy¹ which provided the executive with a better, more profitable and durable embodiment of their strategic vision.Operating between the parent firm’s original strategic intent and the political and economic realities of the host country environment, their strategic influence is worthy of close examination. They can be divided into two distinctive groups—parent country nationals and host-country nationals—and the extent to which they co-operate with or obstruct each other will have a significant effect on the success of the enterprise.² The middle management in this case example, an Irish company launching a mobile telecommunications network in Jamaica, is drawn from both groups. This article investigates the apparent autonomy from executive control afforded these particular middle managers to identify the contingent factors that appear to allow, or constrain, their positive transmutation of the original strategic objectives. The key questions addressed are first, how the two groups, both individually and collectively, played out their roles in shifting strategy, and second, once these contextual dynamics have been identified, how other executive management groups can learn from this Irish/Jamaican experience considering similar international ventures. The authors’ response highlights those elements of strategy design, organisational structure and human resource management that they believe are critical in maximising the strategic contribution of middle managers to international ventures, and hence providing a better chance of success.     

A Study of the Role Played by Manufacturing Strategic Objectives and Capabilities in Understanding the Relationship between Porter's Generic Strategies and Business Performance

An appropriate alignment between business strategy, manufacturing strategic objectives and manufacturing capabilities reportedly influences business performance positively. However, few papers empirically analyse this proposition for the case of Porter's generic strategies of cost leadership and differentiation, and none jointly considers all four elements. This paper integrates strategies, capabilities and performance in a single model and proposes that both manufacturing competitive priorities and capabilities, articulated in terms of cost and flexibility, are essential for explaining the link between generic business strategies and business commercial and financial performance. Within this analytic framework, we test whether companies that emphasize one business strategy rather than another achieve a better alignment and superior performance. The analyses conducted with a sample of 148 Spanish manufacturers provide general support for these propositions and contribute to a deeper understanding of the role played by functional strategies in understanding the outcomes of business strategy.