Managerial challenges of Industry 4.0: an empirically backed research agenda for a nascent field

The increasing intelligence of products and systems, their intra-company cross-linking and their cross-company integration into value creation networks is referred to as Industry 4.0. Academics and practitioners, largely agreeing on the global importance of this proclaimed industrial revolution, have published many contributions on the topic. Research, however, is rather focused on investigating single technologies in quite specific application domains and largely neglects the profound managerial challenges underlying Industry 4.0. Given the recent plea for a more active contribution from the management science community, we strive to establish Industry 4.0 as a challenging but promising field for management research, and aim to assist scholars in engaging with the topic. Therefore, we first gather and analyze extant contributions by means of a systematic literature review and synthesize the information gained into 18 managerial challenges of Industry 4.0 falling into six interrelated clusters: (1) strategy and analysis, (2) planning and implementation, (3) cooperation and networks, (4) business models, (5) human resources and (6) change and leadership. Considering that Industry 4.0 is still an emerging topic and publications may therefore not always be found in highly ranked journals, we aimed to increase the confidence in our findings and triangulated our data by conducting an online survey of industry experts and academics that allows us to qualify the identified challenges in terms of importance and future research need. On this basis, we present an empirically backed research agenda and suggest fruitful avenues for future research in three basic categories: practice-enhancing research, knowledge-enhancing research, and high-impact research.     

The role of absorptive capacity and innovation strategy in the design of industry 4.0 business Models - A comparison between SMEs and large enterprises

Technological innovations often lead to redesigns in the business models of established companies, requiring them to incorporate new external knowledge into internal activities. Against this background, this study integrates the concepts of business model design, absorptive capacity, and innovation strategy into a novel research model, which analyzes the redesign of established business models in response to the emergence of Industry 4.0. Industry 4.0, also known as the Industrial Internet of Things, constitutes a contemporary research context that is highly relevant for corporate practice but scarcely regarded in management literature until now. The article contains an analysis of data from 221 German industrial enterprises, conducted through structural equation modeling, with separate data for small and medium-sized enterprises (SMEs) and large enterprises. First, the results indicate that the acquisition, assimilation, transformation, and exploitation of knowledge from the environment enable companies to engage in both exploratory and exploitative innovation strategies. Furthermore, the paper includes an evaluation of the role of exploratory and exploitative innovation strategies that reflects in efficiency-centered and novelty-centered business model designs. The distinct characteristics differentiating SMEs from large enterprises are also explained. The implications of absorptive capacity on innovation strategies, which influence the redesign of extant business models, are discussed from a research and managerial perspective.     

International Business and National Culture: A Literature Review and Research Agenda

This literature review analyzes leading international business and management journals from 2000 to 2012 in order to explore the role of national culture in international business research. Through the analysis of the 265 selected articles, the study thematically maps the field and identifies research challenges and opportunities. It reflects on avenues for future research related to both thematic and methodological issues, among them: research focused on the impact of the home/host national culture on internationalization processes (as existing literature mainly focuses on cultural distance); the role to be played by new theoretical frameworks; and the need to consider cultural positions and cultural friction rather than traditional cultural distance when analyzing internationalization decisions.     

International business thought: A 50-year footprint

As international business marks 50 years of its establishment as a distinct domain of academic research, discussions on both the major contributions of the field and its future research directions have drawn great interest in the current literature. The arrival at a clear consensus on these issues, however, has been set back by the lack of resolution in the search for a unifying, integrative framework of international business. Drawing on theories of knowledge organisation and on extant reviews of international business research, this paper proposes an emergent international business research framework anchored around four unifying themes expressed as broad international business research questions. A content analysis of 1689 studies in the Journal of International Business Studies (JIBS) from its maiden issue in 1970 to 2008 and studies classified as international business in nature done prior to 1960 confirms the trajectories of international business research along the four themes. It is suggested that these major research themes serve as the main research pillars that define the international business domain, framing research done so far, and driving future research in the field. Areas of research intensity and opportunity are identified along with implications for international business research and theory-building.     

Business intelligence and analytics value creation in Industry 4.0: a multiple case study in manufacturing medium enterprises

Abstract

Medium enterprises (MEs) form a majority of enterprises in several regions, yet they are underrepresented in the literature. The digital transformation known as Industry 4.0 (I4.0) brings new data streams into enterprises. MEs and large enterprises will both leverage business intelligence and analytics (BI&A) to improve their business performance, so the study of the conditions favouring value creation of BI&A is of interest. However, there are few studies focusing on the impact of business intelligence and analytics (BI&A) on value creation in I4.0 and none focusing on MEs. Using a multiple case-study design, this paper explores factors linked to BI&A business value creation in manufacturing MEs that are undergoing an I4.0 transformation. Findings suggest enterprises resources and capabilities are not sufficient to predict business value: organizational learning and organizational culture have a non-negligible influence for MEs.     

A critical investigation of Industry 4.0 in manufacturing: theoretical operationalisation framework

Increasing global competition on product quality and production costs, and the need for flexibility in production petition for transformed production processes which enable high level of connectivity and integration between business processes and systems. Much of the conventional computer- integrated efforts and advanced manufacturing technologies are limited in scope and restricted to only some organisational areas. Such limited scope, which stems from limited connectivity and integration between manufacturing and enterprise systems, confines the achievement of full potential of these systems within manufacturing. Industry 4.0, characterised by computing developments, can create a platform for addressing integration challenge through enabling comprehensive connectivity. Hence, this paper, through following deductive research paradigm and using systems theory as the theoretical base, aims to investigate recent academic research and industrial reports in the area of Industry 4.0 and smart manufacturing to provide detailed insights on execution of Industry 4.0, and to propose a theoretical framework for operationalisation of Industry 4.0 in manufacturing.     

Foreign market re-entry: A review and future research directions

Foreign market re-entry has increasingly attracted academic interest. However, different streams of research have developed largely independently of each other, which has hindered theory development and practical advancement in the field. By reviewing 45 relevant articles in international business and related disciplines between 1996 and 2020, this study provides a systematic review and analysis of the literature on re-entry. In addition, a framework is developed to direct future research efforts. Following the logic of ‘Antecedents-Phenomenon-Consequences’ and focusing on the time dimension, this study enables better understanding of the re-entry phenomenon and provides recommendations for future research in this area.     

Bridging,bonding and linking global entrepreneurs: the case of Sri Lanka

The purpose of this study is to understand the dynamics and the nature of successful international business relationships between Sri Lankan small business (SB) entrepreneurs and Sri Lankan emigrants in other countries. Using social capital and social network theory framework, this phenomenological study found the nature and underlying values of business relationships that glue Sri Lankan SB entrepreneurs and their emigrant counterparts. ‘Family-like relationships’ and embedded values lead to developing trusting partnerships that became the sources of augmenting knowledge, resources and internationalization of Sri Lankan SBs. The findings will be useful for international human resource development (IHRD) practitioners to develop training interventions to promote SB internationalization. The implications for IHRD practice and research are discussed. It is important for IHRD scholars to conduct in-depth qualitative research to gain a deeper understanding of hidden values and practices of various SB communities whereas practitioners can initiate actions to develop global SBs.     

Role of Cognitive Styles in Business and Management: Reviewing 40 Years of Research

In line with increased attention on the application of cognitive approaches to industrial, work and organizational psychology, the last 40 years have witnessed a growing interest in application of the cognitive style construct to the field of business and management. The purpose of this paper is threefold. First, we wish to advance understanding of cognitive styles research by elucidating trends and perspectives related to business and management. Second, we identify gaps in the literature and promising areas of research that can be further developed. This is accomplished by means of a review of papers published between 1969 and 2009. Eight themes emerged from our analysis: (a) vocational and occupational issues; (b) national culture; (c) teamwork and interpersonal relationships; (d) learning; (e) decision making; (f) creativity, innovation and entrepreneurship; (g) sales and marketing; and (h) management information systems, information management and use. Third, we identify valid and reliable methods of assessment of cognitive style for use in business and management settings. Finally we draw a number of conclusions regarding the current state of cognitive styles research and promising directions for future research.     

Performance Evaluation of Foreign Subsidiaries: A Review of the Literature and a Contingency Framework

During recent years, the literature on the international dimension of business has grown. In particular, the literature on headquarters–subsidiary relationships has expanded. This paper aims to review the literature on performance evaluation and elaborate an integrative contingency framework. This contingency framework helps to clarify the concept of performance evaluation and to classify existing contributions. Furthermore, the framework serves as a tool to identify potential influencing factors on performance evaluation at corporate and at subsidiary level. By reviewing existing studies, the paper analyses the impact of these influencing factors on performance evaluation and reveals mostly contradictory results or no significant impact at all. Based on the findings, more research outside the classical tradition of contingency approaches is suggested.     

Heuristics in international business: A systematic literature review and directions for future research

This paper aims at depicting the status of research on heuristics in the international business domain to understand the main topic areas in which heuristics are addressed and delve into the types of heuristics used by managers and entrepreneurs when dealing with international business activities. These are characterized by a high degree of uncertainty, drawing attention on the adoption of heuristics for decision-making. To this aim, the paper systematically reviews studies published in top-ranked international business journals between 1997 and 2018. The systematic literature review shows that the main research areas in which heuristics are developed concern foreign market entry, post-entry international expansion, foreign market selection, and international entrepreneurship. The paper also discusses the type of heuristics that are utilized by decision-makers when dealing with the uncertainty related to the internationalization process. The results of this study show that the international business literature develops the concept of heuristics in very various ways, tending to develop a plurality of approaches, without recurring or dominant forms. It is, however, possible to identify the types of heuristics and heuristically-based decisions, and a significant subset of the analyzed studies show a positive view on their effectiveness in the uncertainty of internationalization processes.     

International venture capital research: From cross-country comparisons to crossing borders

Venture capital (VC) has become an international phenomenon, and VC firms are a specific kind of service firm whose characteristics have distinctive implications for international behaviour. There is now a disparate body of research on international aspects of VC across a number of disciplines comprising finance, economics, strategy, entrepreneurship, international business and economic geography. A novel aspect of this paper is that we review and synthesize this disparate literature. A number of research gaps and limitations in the theoretical and methodological approaches involved in previous studies are identified and suggestions made for further research. We show that the vast majority of the literature relates to cross-country comparisons; that is, macro-level comparisons of VC industries across different countries and micro-level comparisons of VC behaviour across countries. From our review of the literature, we argue that an under-researched area concerns the influence of institutional contexts, especially the role of social networks and cultures. Furthermore, our review of the literature indicates that there is a major research gap in relation to work dealing with the crossing of country borders by VC firms. We suggest that resource-based, capabilities, institutional and network theories may be offer insights to further our understanding of the behaviour of VC firms in this area.     

A resource-based view on SMEs regarding the transition to more sophisticated stages of industry 4.0

The integration of small and medium-sized enterprises (SMEs) within the concept Industry 4.0 represents one of its main challenges, as they play a vital part in industrial value chains that shall be digitized from suppliers to the end customer. However, what the implementation stages for Industry 4.0 in SMEs should be as well as the respective resources for achieving the next stage are scarcely understood. In response, this paper proposes a framework using a resource-based review for Industry 4.0 implementation according to the stage of development in SMEs, created between researchers, policy makers, and 354 manufacturing SMEs in the province of Gipuzkoa (Basque Country, Spain). The paper applies a mixed-method approach, combining qualitative (interviews) and quantitative elements (survey data). The results are used to develop a model with four stages of SMEs that are characterized by having distinct preconditions and conditions for Industry 4.0. Thereupon, the required measures to achieve the next stage of Industry 4.0 implementation are derived. This highlights Industry 4.0 for SMEs as a process with different stages toward achieving sustainable competitive advantage and offering insight into how the different resources operate. The high importance and advanced position regarding industrial value creation and SMEs in Gipuzkoa allows to generalize and transfer the findings to other European regions.     

Inter-firm co-ordination: international versus domestic buyer–seller relationships

The use of transaction cost analysis (TCA) to study the choice of governance mode in foreign countries has been a source of considerable research. Empirical tests of the TCA predictions within a single governance mode are, however, limited. Building on transaction costs arguments, and related work in international marketing literature, we examine the association between asset specificity and inter-firm co-ordination in domestic and international buyer–seller relationships. The extant literature is extended by also comparing the impact of environmental uncertainty on inter-firm co-ordination across domestic and international relationships. Empirical findings from a survey of 164 industrial buyers demonstrate that there is a positive association between asset specificity and inter-firm co-ordination, and further that this association is stronger in international relationships than in domestic business-to-business trade. Furthermore, the results indicate that environmental uncertainty is stronger related to inter-firm co-ordination in international buyer–seller relationships compared to domestic buyer–seller relationships.     

Janus and the Delphi Oracle: Entering the new world of international business research

Globalization and other dramatic, world-changing developments have all too frequently taken academic researchers by surprise. Within this dynamic, turbulent environment, international business (IB) researchers must comprehend increasingly complex, multicultural, cross-border activities and organizing systems while providing relevant results to the field. To build and sustain relevance, the international research paradigm must expand to incorporate not only the analysis of historical trends and events but also research frameworks and methods geared to investigation of the future. With this expanded research ‘tool kit’, we will be better able to anticipate and address the ‘Big Questions’ confronting global business operations in the twenty-first century.This paper examines the capabilities of the Delphi Method of scientific inquiry as one such tool which is responsive to the challenging demands of our discipline and describes recent innovations that enhance the Delphi's application to international management research. As this paper demonstrates, the Delphi Method is particularly well-suited to emerging research themes that call on IB researchers to interpret intricate sets of entities, activities, and relationships. Based on conclusions drawn from a summary of recent Delphi studies, recommendations are offered for maximizing the benefits of this method for international research.     

The dark side of business model innovation

Existing literature has tended to focus on the positive benefits and outcomes of business model innovation (BMI), despite emerging evidence that BMI can also have a dark side, with negative consequences. We systematically review the existing BMI literature, articulating it around three clusters of negative consequences: those affecting the firm as an entity; those affecting the firm's stakeholders; and those that are specific or context-dependent. In a similar fashion, we identify the driving factors and circumstances leading to these negative consequences and group them into four clusters: (1) managerial choices and processes, and three underpinning circumstances that influence such choices or processes; (2) trade-offs between the new and current business models; (3) managers’ ability to manage BMI; and (4) context within which BMI is situated. The paper provides the first attempt to gather prior research on the phenomenon and thereby develop a conceptual understanding of the dark side of BMI. Furthermore, by proposing a model that explains how the dark side of BMI may occur, we inform ongoing debates on the theorization of the consequences that may derive from BMI and how these can be managed to support firms’ innovative growth, arguing how the disruptive innovation literature can only partially explain the phenomenon. Second, our model provides important foundations to further distil the complex link between BMI and performance. Finally, we suggest a number of future research avenues, accounting for different dimensions of the phenomenon.     

Sustainable Luxury Marketing: A Synthesis and Research Agenda

Sustainability has become a pervasive issue for the luxury sector, gaining traction with brand managers, scholars, policy‐makers, the media, and academia. The purpose of this paper is to examine the state of sustainable luxury research in marketing and consumer behaviour by critically reviewing and synthesizing the growing but fragmented body of scholarly work on sustainable‐luxury marketing. The paper critically assesses where, how and by whom research on sustainable luxury is being conducted, and it identifies gaps for future investigation. The paper reviews research published between 2007 and 2018 within major peer‐reviewed English‐language scholarly publications in business, marketing, ethics, fashion, food and tourism journals. The research is identified using the keywords sustainable luxury, green luxury, eco‐luxury and organic luxury. Three core themes emerge from this review: (1) consumer concerns and practices; (2) organizational concerns and practices; and (3) international and cross‐cultural issues. The review confirms that research on sustainable luxury is significantly underdeveloped. This paper provides the first critical and comprehensive assessment and categorization of the emergent literature streams on sustainable luxury. The authors argue for a broader, deeper and more critical research agenda on the relationship between sustainability and luxury. Potential avenues for future research on sustainable luxury are proposed, with calls for theoretical and cross‐cultural reflections that tackle broader systemic and institutional issues within the field.     

Forty years of European Management Journal: A bibliometric overview

The European Management Journal (EMJ) is a renowned peer-reviewed journal of international reputation in the fields of business and management research since 1982. EMJ publishes original and high-quality conceptual, empirical, and review research papers that contribute to the advancement of the body of knowledge and its application in the field. Until the time of this overview, 2164 papers (including 2004 articles, 96 editorials, 28 conference papers, 27 notes, and 3 short surveys) have been published in the journal between 1982 and 2020. We analyzed all these articles using bibliometric techniques to examine the impact of the journal’s publications, most productive and influential authors, and their contributions in the field of business and management research. Co-authorship among the top authors, co-occurrences of the topics, co-citations of the journals, bibliographic coupling of the authors, affiliating institutes, and countries were analyzed by applying network analysis techniques using VOSviewer software. The advancement of research in the field of management during the last decade is also critically discussed in order to understand recent developments in the field of business and management research.     

THE PLANT LOCATION DECISION IN MULTINATIONAL MANUFACTURING FIRMS: AN EMPIRICAL ANALYSIS OF INTERNATIONAL BUSINESS AND MANUFACTURING STRATEGY PERSPECTIVES

The paper combines perspectives from international business and manufacturing to examine multinational plant location decisions. The location choice in manufacturing is between integrated and independent plants, while the international choice is between a foreign and domestic plant relative to their headquarters' country. The study empirically investigates whether these choices have different plant location determinants using data from a survey of plant managers of large, multinational firms. We find more evidence that the manufacturing choices benefit from consideration of international business issues than vice versa. However, managers rank determinants associated with manufacturing strategy considerably higher than those associated with intemational business.