An Empirical Investigation of the Contribution of Strategic Sourcing to Manufacturing Flexibilities and Performance*

Empirical studies for achieving manufacturing flexibility goals have centered around the uses and advantages of advanced technology. Few studies have examined alternative ways of attaining flexibility objectives. Strategic sourcing finds mention in the literature as a potential route to manufacturing flexibility. However, little empirical evidence exists to validate this view. Literature also describes manufacturing flexibility as a multidimensional concept but fails to adequately examine the synergies among the different dimensions. This research investigates the influence of strategic sourcing and advanced manufacturing technologies on specific manufacturing flexibilities, and examines relationships among different flexibilities. The results are tied to manufacturing cost reduction. The findings suggest that strategic sourcing can assist in the achievement of modification flexibilities. Volume and modification flexibility are found to influence new product flexibility. Modification flexibility is found to influence manufacturing cost reduction. The results show that strategic sourcing can be used to target specific manufacturing flexibilities and that interflexibility synergies need to be considered while formulating flexibility-based manufacturing strategies.     

The Effects of Information Overload on Software Project Risk Assessment*

Managers are responsible for providing effective information technology governance of the software development process. Ineffective governance leads to serious resource misallocations and negative consequences concerning Sarbanes‐Oxley compliance. In order for managers to make informed decisions about software development projects, they often need more information than is available through normal information channels, that is, they need an in‐depth review of the at‐risk project. Such in‐depth reviews, however, are costly. Hence, accurate identification of at‐risk projects for in‐depth review is critical to management's ability to govern. This research considers how two factors, information load and time pressure, affect the quality of the project‐selection process. We examine quality by observing the decision strategies involved and then relating these strategies to subsequent decision making. An experiment was conducted with experienced information systems auditors using a combination of policy‐capturing and computerized process‐tracing techniques. The participants in our study cope with information overload by accelerating their decision‐making process and adopting noncompensatory decision processes. Contrary to prior research, our process‐tracing analysis suggests that participants rarely filter information, thus implying that decision makers are unable to process all the information. Coping by resorting to noncompensatory strategies did not decrease decision quality unless combined with accelerated information processing. Participants also increase their weight on the software project risk factors that they repeatedly access and that they view for longer periods of time. The theoretical contributions and practical implications regarding what actions managers can take to reduce the negative impact of information overload are discussed.     

An Empirical Investigation of the Malcolm Baldrige National Quality Award Causal Model

The objective of this research is to test the theory and causal performance linkages implied by the Malcolm Baldrige National Quality Award (MBNQA). The survey instrument used a comprehensive set of 101 questions that were directly tied to specific criteria in the 1995 MBNQA Criteria. Results reported here represent the first published article that tests the MBNQA performance relationships and causal model using comprehensive measurement and structural models. In general, our research concludes that (1) The underlying theory of the MBNQA is supported that “leadership drives the system that causes results”; (2) Leadership is the most important driver of system performance; (3) Leadership has no direct effect on Financial Results but must influence overall performance “through the system”; (4) Information and Analysis is statistically the second most important Baldrige category; (5) the Baldrige category, Process Management, is twice as important when predicting customer satisfaction as when predicting financial results; and (6) a modified “within system” set of five Baldrige causal relationships is a good predictor of organizational performance.     

Risk Attitude,Ambiguity Intolerance and Decision Making: An Exploratory Investigation*

Although recent research has identified attitudes towards ambiguity and risk to be important determinants of choice behavior [8] [18], no prior work jointly assessed the roles of both attitudes. We conducted a laboratory experiment using a real decision scenario and conducted exploratory analyses of the relationship between attitudes towards risk and ambiguity and the decision taken by the subjects. The results support the prediction that attitudes towards both risk and ambiguity affect choice behavior. Our exploratory analyses indicate interesting avenues for future research, including an examination of the decision process itself.     

Strategic Information Systems Planning: Planning System Dimensions,Internal Coalignment,and Implications for Planning Effectiveness

Improving strategic information systems planning (SISP) remains a critical concern of both practitioners and academics. To date, a rather large number of studies have examined or proposed analytical techniques, frameworks, and tools for developing strategic plans. As a direct consequence of this emphasis, methodologies have often become the basis for characterizing the entire process of SISP within the information systems literature. Recent theoretical work suggests that such characterizations are unnecessarily narrow and that planning activities within organizations can be more accurately conceptualized as systems of behaviors, agendas, or process dimensions. Working within this contemporary theoretical perspective, the findings of this study suggest that SISP can be operationalized along distinct dimensions of comprehensiveness (extent of solution search), formalization (rules and procedures to guide activities), focus (creativity or control), flow (top down, bottom up), participation (number and variety of planners), and consistency (frequency of planning cycles). Similar to previous theoretical work and case studies, higher order factor modeling of these dimensions suggests that planning systems that exhibit aspects of rationality (high comprehensiveness, high formalization, control focus, top-down flow), and adaptation (high participation, high consistency) are positively associated with planning effectiveness.     

An Empirical Study of the Effect of Knowledge Management Processes at Individual,Group, and Organizational Levels*

To enhance our understanding of knowledge management, this paper focuses on a specific question: How do knowledge management processes influence perceived knowledge management effectiveness? Prior literature is used to develop the research model, including hypotheses about the effects of four knowledge management processes (internalization, externalization, socialization, and combination) on perceived individual‐level, group‐level, and organizational‐level knowledge management effectiveness. The study was conducted at the John F. Kennedy Space Center of the National Aeronautics and Space Administration using a survey of 159 individuals and two rounds of personal interviews. Structural equation modeling was performed to test measurement and structural models using the survey data. The emergent model suggests that internalization and externalization impact perceived effectiveness of individual‐level knowledge management. Socialization and combination influence perceived effectiveness of knowledge management at group and organizational levels, respectively. The results also support the expected upward impact in perceived effectiveness of knowledge management, from individual to group level, as well as from group level to organizational level. The study's limitations and implications for practice and future research are described.     

The Relationship Between Information System Planning Sophistication and Information System Success: An Empirical Assessment*

Literature on information systems (IS) planning implicitly assumes that a sophisticated IS planning process leads to greater IS success. This paper questions the exclusive reliance on this traditional belief. Instead, because IS planning requires significant organizational resources, prior IS success is essential to convince top management of the importance of IS planning sophistication. Therefore, IS success may influence IS planning sophistication. Several theoretical arguments are advanced in support of this explanation. Data from a survey of 236 academic institutions are used to empirically assess the two alternative directions of the relationship between IS planning sophistication and IS success. Four structural models including the alternative causal directions are evaluated. Two of these models are supported. Together, they imply that for a high level of IS planning sophistication, either the previous ISs should have been successful or the organization should possess advanced information technology capabilities. Thus, empirical results suggest that the explanation presented here (i.e., IS success facilitates IS planning sophistication) provides an equally good alternative to the more traditional explanation (i.e., IS planning sophistication facilitates IS success).     

Causal Linkages in Supply Chain Management: An Exploratory Study of North American Manufacturing Firms

In this paper we investigate the key causal linkages in supply chain management. We propose a conceptual framework and test this framework on data from 215 North American manufacturing firms using structural equation modeling techniques. Three major research issues are addressed in this study: Do sourcing decisions affect the degree to which firms achieve manufacturing goals of cost, flexibility, dependability, and quality? Does the degree of manufacturing goal achievement lead to higher customer responsiveness? Does the degree of manufacturing goal achievement lead to higher internal manufacturing performance? The study examines the relationship among sourcing decisions, manufacturing goals, customer responsiveness, and manufacturing performance. The results support the notion that an integrated supply chain involves aligning sourcing decisions to achieve manufacturing goals that are set to respond favorably to the needs of customers.     

The Impact of Competitive Strategy and Supply Chain Strategy on Business Performance: The Role of Environmental Uncertainty*

This article investigates the relationships among competitive strategy, supply chain strategy, and business performance while examining the moderating effect of environmental uncertainty. A total of 604 questionnaires were collected from three cities in China, and the statistical results show significant moderating effects of external environment on the relationships among competitive strategy, supply chain strategy, and business performance. Firms that primarily focus on a differentiation strategy emphasize an agile supply chain strategy. Cost leaders are inclined to implement both lean and agile supply chain strategies, but their emphasis on agile strategy is significantly greater in a volatile environment than in a stable environment. The choice of supply chain strategy does not appear to be an “either‐or” decision and firms could adopt either a lean or an agile strategy, or both, depending on the environment. This article provides significant managerial implications for supply chain practitioners to co‐align supply chain strategy and competitive strategy with the environment to improve performance.     

Maneuvering through Hostile Environments: How Firms Leverage Product and Process Innovativeness

Is focusing on innovativeness the appropriate organizational response in hostile environments? This study addresses four distinct forms of hostile environments: market decline, restrictiveness, competition, and resource scarcity. The research draws on contingency theory to explain how these forms of hostility affect product innovativeness, process innovativeness, and firm performance. While the extant literature has investigated the effects of hostile environments on performance, little has been done to distinguish between different forms of hostility and, in turn, their potential effect on product and process innovativeness. We argue that investments in product and process innovativeness are either fostered or hindered, contingent on the form of hostile pressures from the external operating environment. These firm responses should in turn suppress the negative effects of hostility on performance. A survey using newly developed measurement scales for hostile environments was used to collect data from 148 small and medium‐sized manufacturing plants. The results provide evidence that generally supports our hypotheses. More specifically, the direct effects of the four forms of hostile environments impact product and process innovativeness differently. Likewise, the suppression and consistent mediation effects of product and process innovativeness differ depending upon the type of hostile environment, suggesting that manufacturers consider applying these capabilities contingent upon the type of hostile climate they face. Therefore, to understand how firms leverage product and process innovativeness, hostile environments are best differentiated into categories rather than being aggregated.     

Examining the Antecedents and Consequences of CIO Strategic Decision‐Making Authority: An Empirical Study*

Despite the strategic importance of information technology (IT) to contemporary firms, chief information officers (CIO) often still have varying degrees of strategic decision‐making authority. In this study, we apply the theory of managerial discretion to define CIO strategic decision‐making authority and argue that the CIO's level of strategic decision‐making authority directly influences IT's contribution to organization performance. We also draw on the power and politics perspective in the strategic decision‐making literature to identify the direct antecedents to the CIO's strategic decision‐making authority. A theoretical model is presented and empirically tested using survey data collected from a cross‐industry sample of 174 matched pairs of CIOs and top business executives through structural equation modeling. The results suggest that organizational climate, organizational support for IT, the CIO's structural power, the CIO's level of strategic effectiveness, and a strong partnership between the CIO and top management team directly influence the CIO's level of strategic decision‐making authority within the organization. The results also suggest that the CIO's strategic decision‐making authority in the organization directly influences the contribution of IT to firm performance and that effective CIOs have a greater influence on IT's contribution when provided with strategic decision‐making authority.     

Internal and External Integration for Product Development: The Contingency Effects of Uncertainty,Equivocality, and Platform Strategy

Effective product development requires firms to unify internal and external participants. As companies attempt to create this integrated environment, two important questions emerge. Does a high level of internal integration lead to a higher level of external integration? In the context of product development, this study considers whether internal integration in the form of concurrent engineering practices affects the level of external integration as manifested by customer integration, supplier product integration, and supplier process integration. External integration, in turn, may influence competitive capabilities, namely product innovation performance and quality performance. Second, using contingency theory, do certain contextual variables moderate the linkages between integration strategy (external and internal) and performance? Specifically, this study considers whether uncertainty, equivocality, and platform development strategy change the relationships among internal integration, external integration, and competitive capabilities. Data collected from 244 manufacturing firms across several industries were used to test these research questions. The results indicate that both internal and external integration positively influence product innovation and quality and ultimately, profitability. With respect to contingency effects, the results indicate that equivocality moderates the relationships between integration and performance.     

Integrating Knowledge through Information Trading: Examining the Relationship between Boundary Spanning Communication and Individual Performance*

With the global penetration of Internet technologies, individuals may now cross organizational boundaries to communicate efficiently with others regardless of time and space. Thus, when looking for help in solving work tasks, knowledge workers may just as easily contact individuals in rival firms across the globe as a coworker sitting at the next desk. As a result, management faces questions such as (1) How should firms manage employees' knowledge‐sourcing activities when they span both intra‐organizational and extra‐organizational boundaries, and (2) What is the relationship between different knowledge‐sourcing activities and individual performance? Grounded in the knowledge‐based view of the firm, we investigate these questions using data from Europe's largest information technology (IT) services and management consulting company. Our results provide evidence that organizations should support boundary spanning and knowledge sourcing from both internal and external sources. Results suggest (1) a positive relationship between boundary spanning communication and creativity and general performance, and (2) a negative relationship between a reliance on colocated coworkers as knowledge sources and creativity.     

An Exploratory Analysis of the Value of the Skills of IT Personnel: Their Relationship to IS Infrastructure and Competitive Advantage

Determining and assessing the requisite skills of information technology (IT) personnel have become critical as the value of IT has risen in modern organizations. In addition to technical skills traditionally expected of IT personnel, softer skills like managerial, business, and interpersonal skills have been increasingly cited in previous studies as mandatory for these employees. This paper uses a typology of IT personnel skills—technology management skills, business functional skills, interpersonal skills, and technical skills—and investigates their relationships to two information systems (IS) success variables, IS infrastructure flexibility and the competitive advantage provided by IS. The study investigates these relationships using the perceptions of chief information officers (CIOs) from mostly Fortune 2000 companies. The contributions of this study are: IT personnel skills do affect IS success, technical skills are viewed as the most important skill set in affecting IS infrastructure flexibility and competitive advantage, and modularity is viewed as more valuable to competitive advantage than integration. Several explanations are offered for the lack of positive relationships between the softer IT personnel skills and the dimensions of IS success used in this study.     

Sustaining the Benefits of a Quality Initiative through Cooperative Values: A Longitudinal Study

Although research has shown that organizational cultural values influence the success of quality initiatives, how and when cultural values are influential is unclear. This longitudinal study asserts that quality management should be viewed from a dynamic perspective to better understand the role of cooperative cultural values in a quality initiative. We use a multilevel model of quality management, and develop time‐oriented hypotheses using a sociotechnical systems perspective to examine the role of cooperative values. Our analysis uses longitudinal data from over 30 U.S. federal government agencies, collected during an enterprise‐wide quality initiative. We find that, over time, the influence of organization‐level quality practices diminishes, but the influence of cooperative values increases; workgroup‐level quality practices remain consistently important. Our findings reveal the unexplored influences of cooperative values to sustain the benefits of quality management.     

Risk,Process Maturity,and Project Performance: An Empirical Analysis of US Federal Government Technology Projects

In recent years, there has been increasing pressure on the US federal government to reduce spending and improve the management of its technology projects. Mitigating the adverse impact of risks on the performance of these projects presents a significant challenge for its stakeholders. Our research examines this challenge in two steps. First, we identify and define a set of salient risks in federal technology projects—specifically, complexity risk and contracting risk in the planning process, and execution risk in the execution process. Next, we investigate whether higher levels of process maturity, assessed by the Capability Maturity Model Integration (CMMI) framework, mitigate the negative effect of project risks on project performance. The analysis of time‐series data collected from 82 federal technology projects across 519 quarterly time periods indicates that each of the three types of risks has a significant negative effect on project performance. This finding highlights the practical significance of managing these risks in the federal technology project context. Further, we find that increasing levels of process maturity attenuate the negative effect of project risks on the performance of federal technology projects. However, the attenuation effects are consequential only at high levels of project risks; at low levels of project risk, increasing levels of process maturity can adversely affect project performance. To demonstrate the financial implications of increasing process maturity levels in federal technology projects, we examine the magnitude of project cost savings (and overruns) across different levels of CMMI and project risks. In summary, our study contributes to the sparse literature on public sector operations by addressing the understudied context of federal technology projects, and provides a nuanced examination of the implications of process maturity in managing the risk to performance relationship in such projects.     

The Role of Culture as Driver of Quality Management and Performance: Infrastructure Versus Core Quality Practices*

Increasingly, scholars and practitioners recognize the importance of understanding organizational culture when implementing operations management practices. This study investigates the relationships among organizational culture, infrastructure and core quality management practices, and manufacturing performance using two alternative models. Understanding these relationships is important because culture can provide insight into the context dependence of quality management practices and shed light on the mixed results of past studies concerning the link between quality management and performance. Analysis of manufacturing plants from six countries indicates that organizational culture has a stronger influence on infrastructure quality management practices than on core quality management practices, regardless of whether the plants are located in Eastern or Western countries. In addition, infrastructure quality management practices have a significant effect on manufacturing performance. These results contribute to the quality management literature by emphasizing the importance of accounting for culture when making decisions to implement quality management practices to achieve a performance advantage. Finally, we also contribute to the literature on the culture–performance linkage by finding support for a direct link between culture and manufacturing performance.     

A Resource‐Based View of Strategic IT Alignment: How Knowledge Sharing Creates Competitive Advantage

A critical decision problem for top management, and the focus of this study, is whether the CEO (chief executive officer) and CIO (chief information officer) should commit their time to formal planning with the expectation of producing an information technology (IT)‐based competitive advantage. Using the perspective of the resource‐based view, a model is presented that examines how strategic IT alignment can produce enhanced organizational strategies that yield competitive advantage. One hundred sixty‐one CIOs provided data using a postal survey. Results supported seven of the eight hypotheses. They showed that information intensity is an important antecedent to strategic IT alignment, that strategic IT alignment is best explained by multiple constructs which operationalize both process and content measures, and that alignment between the IT plan and the business plan is significantly related to the use of IT for competitive advantage. Study results raise questions about the effect of CEO participation, which appears to be the weak link in the process, and also about the perception of the CIO on the importance of CEO involvement. The paper contributes to our understanding of how knowledge sharing in the alignment process contributes to the creation of superior organizational strategies, provides a framework of the alignment‐performance relationship, and furnishes several new constructs.     

Employee Misuse of Information Technology Resources: Testing a Contemporary Deterrence Model

Recent research in information systems and operations management has considered the positive impacts of information technology (IT). However, an undesirable side effect of firms’ increasing reliance on IT to support the distribution and delivery of goods and services to customers is a greater exposure to a diverse set of IT security risks. One such risk is intentional employee misuse of technology resources. In this article, we draw upon modern deterrence frameworks to develop a predictive model of technology misuse intention that incorporates formal and informal sanctions as well as employment context factors. The model specifies previously untested relationships between formal and informal sanctions, thereby providing fresh insight into the role of sanctions in deterring technology misuse in organizations. Our results suggest that a predisposition toward the need for social approval and moral beliefs regarding the behavior are key determinants of technology misuse. Contrary to criminological research that has questioned the relative importance of formal sanctions in the deterrence process, we also found that the threat of formal sanctions has both direct and indirect influences on technology misuse intention. Further, from an employment context standpoint, employees who spend more working days away from the office (i.e., “virtual” mode) appear more inclined to misuse their organization's technology resources. The findings have implications for the research and practice of technology management.     

经济制度变迁对我国国有企业融资动机的影响——基于调查问卷的分析

本文以405家国有企业为研究对象,采用结构方程模型研究了我国经济制度变迁对国有企业融资动机的影响.结果表明:第一,就总体趋势而言,我国经济政策变革与经济环境变化均强化了国有企业的融资动机,只是前者对国有企业融资动机的影响要明显强于后者所产生的影响;第二,各项经济政策的变更对国有企业融资动机的影响较为均衡;第三,"加入wTo"成为推动国有企业开展融资活动的最重要的环境因素;第四,我国经济制度变迁对国有企业融资动机的影响,主要体现在"调整资本成本"等目的上,而"补充营运资金"所受影响不显著.