Measuring Dynamic Capabilities: Practices and Performance in Semiconductor Manufacturing

Research on dynamic capabilities emphasizes the importance and role of organizational routines in explaining interfirm differences in performance. While performance differences are well documented, few empirical analyses explore the processes inside organizations that lead to dynamic capabilities or attempt to define and measure their performance effects. This paper examines one type of dynamic capability – the development and introduction of new process technologies in semiconductor manufacturing. This dynamic capability is an important source of competitiveness in the semiconductor industry, given the short product lifecycles, rapid price declines, and rapid technological advances that define the industry. Because much of the knowledge that underpins semiconductor manufacturing is idiosyncratic, firm-level R&D organization and information technology practices that facilitate problem solving and learning-based improvement provide important and enduring advantages. We derive models of the rate of improvement in manufacturing yield (i.e. the quality of production) and cycle time (i.e. the speed of production) following the development and introduction of new process technologies in manufacturing facilities, and test the empirical specifications of these models. The ways in which semiconductor manufacturers accumulate experience and articulate and codify knowledge within the manufacturing environment build new process development and introduction dynamic capabilities that improve performance.     

投资型人力资源管理系统与企业绩效的关系研究

本文根据对中国116家企业的人力资源实践状况的调查结果,分析了人力资源管理实践与企业绩效之间的关系.本文通过因素分析.揭示了投资型人力资源管理系统的内容结构,同时基于人力资源实践的组合,划分了高低水平人力资源实践组别并对其进行了比较.接着本文进行了相关分析和回归分析,分析投资型人力资源管理系统、人力资源战略整合与企业绩效之间的关系.研究发现,企业绩效不仅与部分人力资本投资活动存在积极的联系.而且与人力资源管理系统和企业战略的整合程度有关.论文的研究结果增加了我们在高绩效工作系统方面的知识.为当前我国企业的人力资源管理实践提供了重要的启发.     

Refinement and validation of a comprehensive scale for measuring HR practices aimed at performance-enhancement and employee-support

The purpose of this paper is to refine and validate a Human Resource practices (HRP) scale to measure employees' perceptions and test a two-tier model structured in eight practices and two bundles. In a sample of 554 employees, an EFA (Exploratory Factor Analysis) offered six factors that explained about 70% of the variance. Then, with 1647 employees (from 41 Spanish organizations), first- and second-order models were tested with Confirmatory Factor Analysis (CFA). The former encompasses eight practices. The latter grouped the practices in two bundles, one on enhancing performance and the other on supporting employees. The Cronbach's alpha, Rho coefficient (Composite Reliability Coefficient), Omega coefficient, and Spearman-Brown split half coefficient showed good reliability. Validity evidence was found for construct, criterion, convergent, content, discriminant, and predictive validity. Moreover, the paper integrates different ways of approaching the study of HR management based on employees' perceptions, using a two-tier approach. The two-bundle model showed better fit, pointing out the importance of paying attention to multiple outcomes for employees and organizations. The study makes a relevant theoretical contribution about the role and aims of HRM practices for organizational success and employees' performance and well-being.     

Effect of best management practices on the performance and productivity of small firms

Abstract

Recent research on productivity finds that best management practices are a crucial but neglected element in explaining firm productivity. This stream of research also focuses on why a large number of firms may not implement best management practices despite their apparent benefits. In this paper, we examine the adoption of best management practices in small leveraged buyout (LBO) firms. Our choice of small LBO is motivated by the fact that these firms undergo extensive restructuring and, therefore, there is an opportunity to study the adoption process of best management practices. The findings show that buyout companies introduce best management practices (operations, monitoring, targets and incentive-related practices) at different stages of their development, and more importantly, these practices evolve in response to changes in various firm-level characteristics. For example, companies emphasizing cost leadership tend to follow targets and monitoring related practices while firms following a differentiation strategy are more likely to implement incentives and operations related management practices. Buyout sponsors’ board representatives and new CEO also play a critical role in the adoption of these best management practices which are linked to superior firm performance, measured as growth in revenues, productivity and return on assets.     

A Contrast of HRM and TQM Approaches to Performance Management: Some Evidence*

Using a survey, this paper provides information about the current state of performance management (appraisal) from a sample of UK‐based EFQM‐affiliated organizations. It particularly focuses on several critical issues of performance management in the context of TQM including: the effectiveness of TQM programmes; the rationale for performance management; degree of internal consistency between TQM assumptions and performance management systems; and the relationship among performance management, effectiveness of TQM programmes, employee satisfaction and overall organization performance. Although the fundamental precepts advocated by founders of TQM appear to be in conflict with performance management practices, however, the article argues that, rather than being contradictory, both can add value to the operations of the other in the interest of the organization as a whole. More precisely, the paper explains how a successful TQM strategy requires a rethinking and changing the organization's performance management system, otherwise it is highly likely to result in a disaster. To conclude, the survey evidence is used, combined with previous literature, to discuss the implications of these results for designing a contextually appropriate performance management for TQM and in the interest of the future research on TQM and HRM.     

Human Resource Management: Meeting the Ethical Obligations of the Function

Effective human resources management (HRM) is focused on the only dynamic asset of the organization, its people; and, behind every business issue ultimately lies a human issue. Thus, the ethical adequacy of responses to all business issues rests on judgments made by individuals. HRM has a role to play as organizations address ethical challenges and as many strive to become ethical organizations. This article outlines three key responsibilities of HRM with regard to supporting an organization's efforts to become an ethical organization: (1) to establish ethical HR practices; (2) to facilitate the change process as all functions move to ethical business practices; and (3) to create cultures that build individual ethical capability and commitment to the goal of becoming an ethical organization.     

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.     

Knowledge modelling for contract disputes and change control

The construction industry involves many participants with different perspectives and requirements. Contracts can provide significant value, and yet ineffective contract management frequently leads to disputes. In practice, contracts are hardly reviewed, and contract management is limited. This study aims to investigate how firms can improve their internal processes relating to knowledge management (KM) through effective contract management to aid construction practitioners in managing contract disputes and changes. Using a questionnaire survey and a workshop involving experienced industry practitioners and researchers, the findings reveal that project- and individual-level implementation of KM processes is stronger than at the organizational level, and also there are substantial human resources (HR) practices that support contractual KM. Workshop participants believe efficient and effective KM can minimise losses from contract changes and disputes. A construction contract management process framework, a 19-step benchmarking model for contract management and a construction planning checklist for contractors are proposed.     

A Systemic View of Enterprise

Abstract

Uniqueness of person, organization, and environmental situation is a fact of life. Imitating practices that occurred in a different unique environment does not work well. Improving organizational performance requires managing within the constraints of two sets of variables that are specific to each organization: variables that connect the organization to the environment and variables that support individual human performances. Organizational variables include those relevant to two specific categories of value-adding outputs (the financial marketplace and the consumer service marketplace), and four specific categories of costly but necessary inputs (money, technology, materials and labor). The paper specifies ten guidelines for understanding and managing the interplay between the organizational variables and psychological variables. The guidelines permit systemic organizational and performance management which enables organizational improvement.     

How high-commitment HRM relates to PC violation and outcomes: The mediating role of supervisor support and PC fulfilment at individual and organizational levels

Psychological contract (PC) constitutes a theoretical framework for; explaining labor relationships, and it has been considered as a; mediation step between structural variables and processes and work and; organizational outcomes. Whereas PC (un)fulfillment; showed consistent relationships with variables such as job satisfaction, organizational commitment, performance, or absenteeism, the effects of PC; violation (emotional answers that develop after perceptions of PC; breach) have been less investigated. In addition, structural antecedents; of PC constructs had included Human Resources (HR) practices. This paper aims to extend; research on PC and its role as a mediator between HR practices and work; outcomes, both at individual and organizational levels. Specifically, we; examined the impact of human resource practices on employee performance; and sickness absences through a sequence of supervisor support, PC; fulfillment and PC violation. In a sample of 4648 employees from 214; companies of seven different countries, our results indicate that high-commitment; human resource practices were significantly and negatively; related to PC violation through supervisor support and positively to PC; fulfillment; in turn, PC violation was negatively related to employee; performance and positively to sick leave. These relationships at the; individual level were partially replicated at the organizational level, developing partial homologous models and showing that shared perceptions; about HR practices lead to shared perceptions on PC affecting collective; outcomes. Therefore, the findings shed new light on PC theory, regarding; the mediating role of PC constructs and negative emotions in the; relationships between HR practices and support from supervisors and performance at individual and organizational levels.     

Labour Market Flexibility,Human Resource Management and Corporate Performance

Labour market flexibility is often portrayed as a key to the competitive success of the UK and US economies. We surveyed several hundred firms in the UK, and using the resulting data (on over 200 manufacturing firms) this paper investigates the relationships between firms’ use of flexible work practices, human resource systems and industrial relations on the one hand, and corporate performance on the other hand. The results suggest that ‘low‐road’ practices – short‐term contracts, a lack of employer commitment to job security, low levels of training and low levels of human resource sophistication – are negatively correlated with corporate performance. In contrast, it is found that ‘high‐road’ work practices –‘high commitment’ organizations or ‘transformed’ workplaces – are positively correlated with good corporate performance. It is also found that human resource management practices are more likely to contribute to competitive success where they are introduced as a comprehensive package, or ‘bundle’ of practices. Significant interaction effects between human resource systems, trade unions and flexible work practices add further support to the bundling hypothesis.     

Human resource strategy to improve organizational performance: a route for firms in Britain?

Performance, in the context of organization, is not only a broad concept which has been used synonymously with productivity, efficiency, effectiveness and, more recently competitiveness, it has also been a subject of study for social scientists from a wide range of disciplinary perspectives. More recently, efforts have been made by human resource management (HRM) theorists to try to establish a causal link between HRM and performance. This has led to a growing number of studies which examine the potential contribution that good human resource policy can make to improving organizational performance. This paper is not concerned with the conceptual debate of HRM and performance. Rather, it explores whether adopting good HR practices to improve performance is a practicable approach to organizations in the UK. Drawing on existing empirical evidence from other studies, the paper reviews the strategies British firms deploy to improve labour productivity. In particular, the issue of whether they use the 'high-road' HRM or 'low-road' HRM strategy to enhance performance is investigated. This paper concludes by suggesting that high-road HRM may lead to better organizational performance, but it may not be a strategy that firms opt for, given the historical, social and institutional context of employment relationships in Britain.     

United we stand: HR and line managers’ shared views on HR strategic integration

Based on strategic consensus literature and the strategic integration of HRM, this study hypothesizes that HR and line managers’ shared views on HR strategic integration (i.e., strategic congruence) lead to beneficial organizational outcomes. Drawing on a dyadic sample of 102 organizations, we examine the strategic congruence of line management (LM) and HRM, its joint impact on HRM value, and, in turn, the influence on internal efficiency. In this context, HRM value refers to the perceived importance of the HR function to the organization. Structural equation modeling, polynomial regressions, and response surface methodology show that there is, in fact, a non-linear relationship between strategic congruence and HRM value. Thus, only when the views of the line managers and HR managers are congruent (i.e., in agreement) does the HRM value increase, which, in turn, mediates the effect on internal efficiency. Thereby, we offer new insights into the mechanisms of strategic congruence, the mediating role of HRM value, and firm-level outcomes. Implications for theory and practice are discussed.     

Strategies for Knowledge Creation in Firms *

We extend the knowledge‐based view by providing an explanation of how firms develop the capability to create knowledge. We take the view that firms are distributed knowledge systems composed of individuals who embody knowledge, and theoretically identify and empirically test the existence and effectiveness of two strategies – organization and project team – that promote their interactions to develop this capability. On the one hand, building on what we call the organization‐level innovation literature, we identify the organization strategy, which suggests investment in organization‐level integrative management practices to facilitate interactions to create knowledge among individuals situated in different parts of the system, independently of when a knowledge‐creation task is established and individuals are organized to create knowledge. On the other hand, building on what we call the team‐level innovation literature, we identify the project team strategy, which suggests investment in project team‐level integrative management practices to facilitate interactions to create knowledge among individuals once a knowledge‐creation task is defined and individuals are placed into teams to create knowledge. The two strategies are substitute approaches for the development of the capability, although the organization strategy appears to better predict outcomes of the capability. However, this approach might be more costly, so not all managers will choose to follow it.     

An integrated framework of mimetic pressures,quality and environmental management,and firm performances

Abstract

Manufacturers have extensively recognised the strategic importance of quality and environmental management. However, there is little guidance on how they adopt and exercise both management practices in a way that enhances firms’ performance outcomes. To fill the research gap, this paper empirically investigates the relationships among mimetic pressures, a firm’s quality management practices (QMPs), environmental management system (EMS), and environmental and financial performances. By using a data set collected from 212?U.S. manufacturing firms, this study examines the proposed hypotheses. Our major findings are: first, mimetic pressures are a driving factor for EMS but do not motivate the adoption of QMPs; second, QMPs are an important enabler not only for enhancing firms’ financial performance but also for promoting EMS and environmental performance; and finally, EMS does not influence firms’ financial performance directly, but indirectly does so through enhancing environmental performance. This study contributes to the literature of quality and environmental management and provides practical implications by addressing motivating factors of both QMPs and EMS, and identifying factors for successful environmental management practices.     

The Impact of Performance Audit on Public Sector Organizations: The Case of Estonia

The results of a survey of 118 Estonian public officials show that auditees can perceive performance audit to be useful even if it does not lead to specific changes in policies or organizational practices. No trade-off between the accountability and improvement functions of performance audit could be observed, though a surprisingly low percentage of the respondents considered performance audit to have been used to hold the audited organization accountable for their actions. While the factors internal to the audit process – including the perceived expertise of the auditors, their openness to dialogue with the auditees and the quality of audit report – influenced the perceived usefulness of the audit, they had less bearing on the adoption of changes by the audited organizations. The study indicates that when parliamentarians pay attention to performance audit and when media attention leads to political debate, the adoption of changes recommended by the performance audit report is more likely.     

A review of the Chinese cultural influences on Chinese enterprise management

In order to create and sustain competitive advantage, a company should not only develop technologies to create products and processes that meet customer needs, but also stimulate a corporate culture that commits to continuous performance improvement. Managing corporate culture is one of a number of important factors that make for organizational change and business success. This paper reviews the cultural roots and identifies the characteristics of Chinese cultural values and management. A comparative analysis of the differences between Anglo-American and Chinese cultures is made. The cultural influences on Chinese management systems are then elaborated with reference to enterprise management in Mainland China and Hong Kong. With unique cultural heritage, collective orientation has a pervasive influence on the mode of Chinese management and organization. The prevailing Chinese culture values stress largely the paternalistic approach to management, acceptance of hierarchy and the importance of relationships. Today's Chinese enterprises need to determine changes in practice or value or both aspects of corporate culture in order to facilitate organizational change and maintain a competitive edge over their rivals. The paper also discusses the links of cultural values to employee involvement (EI) and total quality management (TQM), and initiates a need to manage cultural influences on EI/TQM practices to improve organizational performance in Chinese enterprises.     

Labor Market Intermediaries and the New Paradigm for Human Resources

Labor market intermediaries (LMIs) are entities that stand between the individual worker and the organization that needs work done. They include well-known operations such as executive search firms that act as brokers to fill jobs and temp agencies that lease labor to clients but also less familiar entities such as professional employer organizations (PEOs) that take on the legal obligations of employment for clients. LMI's mediate between individual workers and the organizations that need work done, shaping how workers are matched to organizations, how tasks are performed, and how conflicts are resolved [Autor, D.H. (2009). Studies of labor market intermediation: Introduction. In D. Autor (Ed.), Studies of labor market intermediation (pp. 1–26). Chicago, IL: University of Chicago Press]. They essentially disintermediate aspects of management that had been performed by employers. The growth and increasing prominence of LMI's is important for all research associated with the workplace because we can no longer do a study of “workers” in an organization and assume that they are all employees: Some may be temps under contract to an agency, some may be “employed” by a PEO, some may work for vendors. The reason that matters is because LMI's appear to alter attitudes and behaviors on all sides. For example, they change the bilateral, employee–employer relationship into a three-way “triangular” relationship. They may well create “dual allegiance” issues, where individuals feel ties to the search firm that placed them in their current job and their employer or the agency that employs them and the client on whose behalf they are currently working. Most fundamentally, they challenge the existing paradigms we have used to understand the workplace: Does “attraction–selection–attrition” have any relevance, for example, when employers hire temps placed by agencies into permanent jobs? What does career development mean when the person with the most influence over your next job is a search consultant? There is already an extensive literature on LMIs, but it is spread across disciplines and fields and mainly examines the labor market outcomes associated with the use of LMIs. The literature lacks a management voice. We know relatively little about the effects of LMIs on workplace attitudes and behaviors, the central focus of organizational behavior; about how LMIs and the associated rise of outside hiring change how we should think about topics such as recruiting and selection, a central concern of personnel psychology; we know even less about how LMIs change the way firms think about competencies and boundaries of the firm, central topics in strategy, when the firm's workforce is actually employed by another organization or when it can be reshuffled very quickly. We develop a taxonomy of LMIs and use it to classify the burgeoning but disjointed literature on LMIs across the social sciences. We classify LMIs in terms of three main attributes of human resource (HR) practices that they perform: Information Providers, Matchmakers, and Administrators. We describe first how LMI activities differ from HR management practices performed by employers in the traditional relationship. Second, we outline the existing research about how LMIs affect employment outcomes, such as access to employment, wages, work-related attitudes and behaviors, working conditions, and skill development. Finally, we highlight the implications of LMIs for management research, especially new, understudied research questions that need to be addressed.     

6 Structure,Affect and Identity as Bases of Organizational Competition and Cooperation

Abstract

Competing organizations are often defined by their niche overlap or structural equivalence in resource dependence, but the very structure that defines competitors can also identify cooperators. There is a fine line between competition and cooperation, but current theories give insufficient guidance as to which will take place and also contribute to the belief that cooperation between competitors is illegitimate. We show that the legitimacy of these practices, as well the evaluation of their welfare implications, are context bound. Individuals and societies that have been influenced by different theories of competition could reasonably (and have) reach different conclusions as to the legitimacy of competitor cooperation. We then critique extant ideas as to when competitors will cooperate, which rely on industry structure, and suggest instead that perception and social identity are more important in tipping the cooperate–compete balance. We conclude by showing how our arguments inform an important current stream of management research, on the process of institutional change.