Strategic choices and strategic management accounting in large manufacturing firms

Journal of Management and Governance - This study examines the relationship between strategic choices and the use of strategic management accounting (SMA) techniques in large manufacturing...     

How large and small firms can grow together

Recent research into the trading relationship between small and large firms reveals the extent and nature of the dependence of small firms on their large customers. The consequences of dependence for the birth and growth of small firms, and hence for public policy, are described within the context of the small firm as an ‘independent’ economic unit. One such consequence is that the procurement policies and practices of large firms can act as a barrier to entry and a constraint on the growth of new small firms. Although dependence imposes costs on the small firm, collaboration between large buyers and small sellers confers substantial benefits on the latter, particularly at entry and in the early stages at growth.     

Management development in small firms

This paper is a review of the literature concerning management development in small firms. It looks at the benefits in terms of growing a small firm and whether the lack of management skills contributes to their failure. In addition, this paper looks at some of the barriers to management development, including the attitudes and characteristics of the entrepreneur, and also looks at learning models that may be appropriate for small firms. The paper also looks at the authors’ views on the effectiveness of management development for small firms, the barriers to learning as well as the skills required. Management development programmes are now widely accepted as a means of improving the competitiveness of firms and the economy as a whole. Although management education and training has, in the past, been designed mainly for larger firms, there is a growing awareness of the requirements of small businesses. Government initiatives designed to encourage start‐ups and to boost the growth of small firms have emphasized the importance of management development. This review of the literature shows that, on balance, management development programmes are effective for small firms. The main benefits appear to be survival and growth, reduction in failure and improvement in performance. The skills required include leadership and management, developing management systems and techniques and team building. Other skills include planning, delegation and financial management. The paper concludes that there is a need for further research into the effectiveness of management development programmes, the skills required and the barriers to learning in small firms and, also, whether they have an impact on the survival, growth and profitability of small firms.     

A study of expediting practices in manufacturing firms

Abstract

This paper presents the results of an empirical investigation of one of the most common yet least optimized production management practices—expediting. The intention of this study was to generate quantitative insight into issues that underlie expediting decision making, such as the relative frequency of various causes of expediting, commonly used expediting strategies and tactics, and the interaction of expediting and the production scheduling environment in use. The study centered around a survey sent to 1768 manufacturing staff personnel, with 182 usable questionnaires returned. It is hoped that the data and conclusions presented in this paper will be of use to production management researchers who are interested in expediting as a managerial decision.     

Business planning in successful small firms

Strategic planning has been widely publicized during the last decade, but what has been accomplished by this management activity in smaller, high-growth firms? Business plans have been widely recommended for start-up funding, but we have noted additional uses for business plans in pratice. This article reports methods and results of strategic planning and written business plans in high-growth ‘INC. 500’ firms. In spite of a variety of obstacles, over half of the firms conduct strategic planning on a regular basis. Results of this study show that fast-growth firms develop written business plans as a product of strategic planning, mainly by five key management personnel. Written business plans are used more for internal management purposes than for start-up funding. Finally, the completion of strategic planning is positively associated with a firm's profitability. Based on survey and interview data, this article describes a four-phase model to help ensure effective integration of strategic planning processes and the resulting written business plans.     

Finance and innovation in British small independent firms

This paper is concerned with the effects of internal and external capital investment funding patterns on the innovativeness of British small independent firms. By using a combined sample of firms from the relatively prosperous South East and the more problematic Scottish development region, an additional diverse regional economic perspective is given to data initially presented in a national context. Beyond a presentation of the extent of external borrowing, the paper seeks to establish the characteristics of firms obtaining external funds and to assess whether this external capital borrowing sub-sample is mainly comprised of low technology firms in decline, or of high technology firms fueling innovation-led expansion. Data is included on the role of both public and private loan agencies in the external funding process. Conclusions are based on the pattern of results and focus on ways in which the delivery of financial aid might be improved to assist expansion, particularly in fast growing high technology small firms.     

A comparison of quality and utilization problems in large and small group practices

Physicians practicing in large, multispecialty medical groups share an organizational culture that differs from that of physicians in small or independent practices. Since 1980, there has been a sharp increase in the size of multispecialty group practice organizations, in part because of increased efficiencies of large group practices. The greater number of physicians and support personnel in a large group practice also requires a relatively more sophisticated management structure. The efficiencies, conveniences, and management structure of a large group practice provide an optimal environment to practice medicine. However, a search of the literature found no data linking a large group practice environment to practice outcomes. The purpose of the study reported in this article was to determine if physicians in large practices have fewer quality and utilization problems than physicians in small or independent practices.     

Clustering of small agro-processing firms in Indonesia

Small-scale industries in Indonesia provide more than 65% of total manufacturing employment. Sixty-three percent of small-scale firm employment is in firms that are clustered. A cluster is defined statistically in Indonesia as at least 20 firms in a village. For some agro-processing industries, such as bamboo plaiting, clustering does not involve interaction among firms; for others, notably the furniture industry, clustering firms make joint marketing efforts, subcontract each other, and share large orders. This article uses two recent case studies in the agro-processing sector—the furniture and the palm sugar industries—in Central Java. We argue that the target market of the industry (local or international) influences the nature of the contracts and other forms of interaction in the clusters. Targeting an international market requires formal contracts, more focus on marketing, and separate roles for finishing firms and subcontracting firms. Policy should be directed at enabling clusters to shift to the international market by improving contract enforcement regulations, vocational training, and providing opportunities for group lending.     

生产性企业组织学习最优控制模型及其理论分析

运用最优控制理论研究生产性企业组织学习活动的动态最优决策问题.以企业的概念性学习投资率和操作性学习投资率为决策变量,累积知识量、生产率、单位成本和废品率等为状态变量,计划期内的总利润为指标函数,建立了一个最优控制模型,其特点在于规范地描绘概念性学习和操作性学习对企业累积知识量、生产率、单位成本、质量以及企业利润的动态影响.根据生产性企业组织学习和生产经营的实际情况,提出了一些定量化表达的假设和定义.在假设和定义的基础上利用最大值原理分析了所建立的模型,获得了关于动态最优概念性学习投资策略和操作性学习投资策略性质的一些结论,将这些结论与实际问题相结合,指出了在生产性企业组织学习实践上的含义.     

Information systems,inter-functional collaboration and innovation in Taiwanese high-tech manufacturing firms

This article investigates whether (1) cross-functional integration within a firm and the use of information systems (IS) that support information sharing with external parties can enhance integration across the supply chain and wider networks and (2) whether collaboration with customers, suppliers and other external parties leads to increased supply chain performance in terms of new product development and introduction of new processes. Data from a high-quality survey carried out in Taiwan in 2009 were used, and appropriate econometric models were applied. Results show that the adoption of IS that enhance information sharing is vital not only for the effective communication with suppliers and with wider network members, but their adoption also has a direct effect across a firm's innovative effort. Cross-functional integration appears to matter only for the introduction of an innovative process. Collaboration with customers and suppliers affected a product's design and its overall features and functionality, respectively.     

Strategic planning in large firms—some guidelines

Some argue that a foundation for planning has been achieved when a firm can state its strategic plan in terms of products and markets. (This is referred to as the ‘business form’ in this article). If this statement is true, what factors will aid a firm in achieving the business form in its strategic plans? In this article, details of strategic planning in over 50 large firms taken from an empirical research sample are examined to illustrate which factors seem to lead to the business form of strategic plan in these firms.     

Survival and strategy of small/micro firms

 There is no doubt that small firms have shown a great tenacity to survive despite many adverse influences. This is especially surprising in view of the apparently low profits and frequent failures. This paper aims to provide an empirical insight into the diverse problems and means of survival of small/micro firms. The research focused on the konnyaku industry, which predominantly is neither fast-growing nor prone to failure but, instead, has average performance and survival. The purpose of this article is to shed some light on the business alliances and competition in this industry in which members of a sanchi do not cooperate but compete against each other.     

Collective voice mechanisms,HRM practices and organizational performance in Italian manufacturing firms

The literature on employee voice has grown enormously over the past decades. However, the relationships between different employee voice mechanisms and organizational performance are far from being fully understood, and the existing research shows mixed evidence. Moreover, the HRM literature tends to concentrate on individual voice mechanisms (e.g. employee involvement) and to underestimate the role that collective voice may have in the HRM performance relationship. This paper aims to analyze how collective employee voice mechanisms (i.e. union voice and team voice) affect organizational productivity and how these relationships vary when voice mechanisms are adopted in combination with other HRM practices (i.e. variable pay, training, performance appraisals and multitasking). The analysis of a sample of 223 Italian manufacturing firms matched with an external database (AIDA) containing balance sheet information found that union voice is positively related to labor productivity, while team voice does not show any significant relationship with labor productivity. Moreover, both union and team voice have important moderation effects in the HRM-performance relationship. Union voice moderates positively the relationship between variable pay and performance and negatively the relationship between training and performance. Team voice positively moderates the relationship between training and performance. The implications of these findings are discussed.     

Corporate communications managers in large firms: new challenges

The new organisational form of large corporations (horizontal organisation), is affecting the communications job. This corporate transformation leads to new challenges for the corporate communications manager and his team. On the one hand, he has to develop a fully integrated strategy which enables the different forms of communication to contribute to the success of the firm's mission (a common goal). On the other hand, he has to provide small business units, led by strong front-line managers, with professional services. The analysis of several companies will show that the position of the corporate communications department is subject to various pressures and that the development of the `communications function' is calling into question the corporate communications manager's `profession'.     

The causes of gender diversity in Malaysian large firms

The issue of women’s representation at the decision-making level in Malaysia has received special attention from the Government since 2004, the year in which it adopted a policy requiring that 30 % of the posts at the decision-making level in the public sector be filled by women. In 2011, the policy was extended to the private sector where 30 % of listed firms’ board seats are to be allocated to women with 2016 being the deadline for compliance. To this end, this paper aims at examining the factors that determine the appointment of women to the boards of Malaysian large firms. Large firms were chosen in this study because they have the resources and the capacity to adopt the policy more readily than smaller firms. The results reveal that gender diversity is positively associated with board size and the presence of family on the board. That is, the larger the board, the more likely it is that women sit on it. The fact that the presence of women on the board is associated with the presence of one or more family members on the board means that the appointment of women to the board is very much influenced by family ties rather than commercial reasons. The results also reveal a positive association between board independence and the proportion of women directors. Further, it is found that board independence is associated positively with the presence of independent women directors. Finally, the results show that firm performance is negatively associated with gender diversity. That is, firms with low financial performance are more likely to have women on their boards. Hence, taken altogether, the evidence suggests that the appointment of women to the board is very much driven by tokenism and family connection rather than by the business case.     

HRM practices of Canadian and US manufacturing firms: An empirical investigation

This research investigates human resource management HRM practices of manufacturing firms in Ontario, Canada n = 141 , and midwestern United States n = 100 . Differences in sources of recruitment and selection instruments used by firms in the two countries are examined. The study also compares various training, compensation, and other HRM issues. We found major differences in HRM practices of manufacturing firms in the US and Canada.     

Employees' perceptions of skill and some implications for training in three UK manufacturing firms

The concept of skill has been the subject of much debate in academic literature, particularly in relation to the proposed shift between the Fordist and post-Fordist production paradigms. In the context of this debate, this article explores the perceptions of skill held by employees in three UK manufacturing organizations. It shows that, in some firms, the nature of work remains Taylorist, and that this can have implications for employees' perceptions of skill and firms training practices.     

Quality and flexibility performance trade-offs between lean and agile manufacturing firms in the automotive industry

Abstract

Firms operating in the automotive industry have traditionally been ascribed with efficiency and high levels of quality, as lean production has been extensively applied within this context, but given the recent dynamics in the automotive sector, there is also a need for high levels of flexibility, widening our attention to agile production. However, when lean and agile production have been explored simultaneously, the quality and flexibility trade-offs have been mixed and unclear. In order to dispel the lean-agile ambiguity, and given that both high levels of flexibility and quality are required within the automotive industry, the purpose of this study was to: (a) Identify the relationship between flexibility and quality; and (b) Explore the quality and flexibility differences between lean and agile production. Primary quantitative data was obtained via a survey and a total of 140 automotive manufacturing firms within the UK returned the survey. Logistic regressions were utilised as the main mode of analysis. Not only was an inverse relationship found between quality and flexibility, but our findings depict two distinctive Business Models (BMs) existing in the automotive industry, one lean and one agile. We advance the lean-agile debate by asserting that lean and agile firms acquire quality (efficiency) and flexibility strengths respectively, and not vice-versa. Given this, we theoretically side with the notion of performance ‘trade-offs’ and contend the idea that capabilities are cumulatively gained. By incorporating an argument built on the strategy literature on BMs and Dynamic Capabilities, we assert that lean and agile firms have evolved to underpin different kinds of competitive advantage within the same industry, but these advantages are placed at different tiers in the automotive supply chain.