Data-driven operations management: organisational implications of the digital transformation in industrial practice

Abstract

The ongoing digital transformation on industry has so far mostly been studied from the perspective of cyber-physical systems solutions as drivers of change. In this paper, we turn the focus to the changes in data management resulting from the introduction of new digital technologies in industry. So far, data processing activities in operations management have usually been organised according to the existing business structures inside and in-between companies. With increasing importance of Big Data in the context of the digital transformation, the opposite will be the case: business structures will evolve based on the potential to develop value streams offered on the basis of new data processing solutions. Based on a review of the extant literature, we identify the general different fields of action for operations management related to data processing. In particular, we explore the impact of Big Data on industrial operations and its organisational implications.     

Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal

In this qualitative study, we explore how incumbent firms in traditional industries build dynamic capabilities for digital transformation. Digital transformation has been defined as the use of new digital technologies, such as mobile, artificial intelligence, cloud, blockchain, and the Internet of things (IoT) technologies, to enable major business improvements to augment customer experience, streamline operations, or create new business models. In making sense of digital transformation, we discovered that leaders in various industry circles use the term inconsistently to describe various strategizing and organizing activities; in addition, the term has gained limited scholarly attention as a context for study of strategic change. Drawing on senior executives' experiences with leading digitalization projects at incumbent firms, we propose a process model comprising of nine microfoundations to reveal the generic contingency factors that trigger, enable, and hinder the building of dynamic capabilities for digital transformation. Our findings reveal that digital transformation is an ongoing process of using new digital technologies in everyday organizational life, which recognizes agility as the core mechanism for the strategic renewal of an organization's (1) business model, (2) collaborative approach, and eventually the (3) culture.     

Managing stakeholder pressures: Toward a typology of corporate social performance profiles

Why do some firms ignore some stakeholders while courting others? We propose two key drivers of firms' social postures and derive from this analysis a novel typology of corporate social performance (CSP) profiles. Although we expect that other drivers exist, we argue that a useful starting point for understanding any given CSP profile is to consider the pressure exerted on an organization by its stakeholders in conjunction with its level of resource endowment. Our preliminary typology identifies six distinct CSP profiles that reflect different opportunities and risks for stakeholder management: the CSP Vanguard, Opportunist, Generalist, Minimalist, Specialist, and Laggard. All else equal, the first two CSP profiles imply more nonmarket opportunities than risk, whereas we expect Laggards and Specialists to face greater risk in their responses to social and environmental issues. According to our framework, Generalists and Minimalists probably operate between these two extremes of business risk. Our conceptual analysis seeks to advance research and practice for more strategic stakeholder management.     

Cinderella purchasing transformation: linking purchasing status to purchasing practices and business performance

This paper contributes to the on-going debate about the relevance of the purchasing function for the firm value creation. We empirically examine the role of the purchasing function in improving business performance through an international survey based on 653 responses. Results suggest that purchasing practices related to spend rationalisation have a positive impact on the overall business performance, whereas supplier development & integration and sustainable purchasing have not. Moreover, the purchasing recognition by top managers and other organisational units emerge as a powerful antecedent of all purchasing practices. Instead, pure formal authority provided by the position in the organisation chart (i.e. the report level) does not have any influence on purchasing practices adoption.     

The Big Five personality factors and team performance: implications for selecting successful product design teams

In the pursuit of faster product development, product design teams are a growing phenomenon in many organizations. In order to be successful, these teams must be composed of people who work well together. However, despite the benefit of selecting the optimal combination of team members, this topic has received little attention. Personality has been identified as a potentially helpful selection variable in the determination of optimal team composition. This study examines the relationships between the ‘Big Five’ personality factors (Conscientiousness, Extraversion, Neuroticism, Agreeableness, and Openness to Experience) and objective team performance for three-member product design teams. In addition to this, the potential incremental contribution of personality to the variance in team performance over that accounted for by established selection measures such as general cognitive ability was investigated. In the short duration of the study, it became apparent that some teams were capable of success, and some were not. Successful teams were characterized by higher levels of general cognitive ability, higher extraversion, higher agreeableness, and lower neuroticism than their unsuccessful counterparts. In successful teams, the heterogeneity of conscientiousness was negatively related to increments in product performance. Implications for the selection of product design teams and future directions for research are discussed.     

Negative implications for the inclusion of citizenship performance in ratings

Although citizenship performance has been deemed important to organizational effectiveness, potential negative consequences related to including these behaviours in assessments of performance have received far less attention. Furthermore, although numerous researchers have demonstrated that performance ratings include task and citizenship performance, none have specifically examined the potential negative implications this has for performance ratings, employees, and organizations. This article conceptually explores the implications of including citizenship performance in formal ratings of performance. Specifically, the negative implications of including citizenship performance in the formal performance appraisal process are explored in terms of the consequences for the performance rating, including inaccurate appraisals; effects on employees, including reactions to the procedure; potential organizational outcomes, including performance and competitive advantage concerns; potential international and legal considerations.     

Mechanisms for Managing Ambidexterity: A Review and Research Agenda

Ambidexterity is of central importance to the competitive advantage of the firm, yet to date there is limited understanding of how it is managed. The theorization of ambidexterity is inadequate for complex, practical realities and, in turn, this hinders the way in which it can aid the management of ambidexterity in practice. This paper asks: What are the mechanisms for achieving ambidexterity? The authors use a systematic review to develop a research framework which integrates intellectual capital resources (organizational, social and human capital) across various levels of analysis (organization, group and individual). This review extends understanding of the generic mechanisms (i.e. temporal, structural and contextual ambidexterity) that dominate the literature. This allows for a more fine‐grained understanding of how ambidexterity is achieved and enables avenues for further research to be identified.     

Contemporary performance measurement and management (PMM) in digital economies

The rate of change in the world is increasing both in scope and magnitude by rapidly developing digital technologies. The challenging problem for performance measurement and management (PMM) in the digital era is twofold: firstly, the constant change in the external environment is compelling PMM to be more dynamic. Secondly, organisations have to deal with different varieties and volumes of data to create competitive advantage. The aim of this paper is to explore how PMM models and practices should be renovated to be resilient and reflect advances in the digital economies. Literature review on the state of the art was conducted covering the issues faced by organisations in the digital economies and their relevance to PMM. A case study was conducted to explore the practitioner perceptions of dealing with the issues faced in digital economies as well as to understand how they are making changes to their PMM. The key findings from the study include: (1) Organisations should refocus their measurement efforts to incorporate evaluation of their performance over a wider network involving various stakeholders. (2) Organisations need to understand how technological developments could create competitive advantage through their strategy and deploy it to relevant positivistic and behavioural measures.     

Managing competence acquisition and financial performance: An empirical study of how small firms use competence acquisition strategies

Past research has neglected how small firms manage competence acquisition. Based on transaction cost literature, this article identifies competence acquisition management strategies and their implications for performance. We explore this issue using survey data from 842 small, knowledge-intensive firms. The results outline four aspects of competence acquisition management: (1) competence absorbers, (2) social acquirers, (3) market acquirers, and (4) nonacquirers. Furthermore, we hypothesized and found that market acquirers score higher in terms of financial performance than firms following the other strategies. The market acquirer strategy proved particularly effective under conditions of high dynamism.     

Managing Through Networks: Some Issues and Implications for the NHS

Hierarchies, markets and networks have been described as three alternative styles of organizing, each of which may call for distinctive managerial orientations and styles. The question arises as to whether there is now a deep-seated shift underway from organizational forms based on markets and hierarchies and towards more network-based forms of organization.
This paper assesses the significance of these broader developments with reference to changing managerial practice within a major UK organization (the NHS). It seeks to access the developing theory of network-based organizations; to assess empirically the significance of these developments for managerial practice within public-sector organizations such as the NHS; and to consider the organizational and managerial implications, for example, Human Resource Management (HRM) strategy. There have so far been few studies which have taken public-sector settings for study or which have sought to connect network theory to practice, and this paper can make a useful contribution in these regards.     

Managing big data in the retail industry of Singapore: Examining the impact on customer satisfaction and organizational performance

Much of the research on big data analytics has been centered on technical or system development. Research has been carried out on the usage of big data analytics to understand customer relationships and experience, amongst others. Still, there is a lack of research in the retail industry considering big data management, examining the impact on customer satisfaction and organizational performance in the retail sector. Retailers explore analytics to gain a unified picture of their customers and operations across the store or online channels and make strategic decisions contributing to the growth of the retail industry. Thereof, this study has been conducted by majorly focusing on the Singapore retail industry to clarify the feasibility of big data management analytics. Quantitative research method was employed involving 500 participants from the retail industry of Singapore. The results of the study stated that amongst the different big data analytics utilized within the retail industry of Singapore, social media analytics had been majorly answered by the participants. Future researchers can study about the upcoming retail trends in Singapore and how the effects of big data analysis changed in the past few years and deal with the unexpected future recessions in the retail industry within Singapore.     

基于政府角色转换的企业政治资源、策略与绩效之间的相互影响

认为政府在企业政治活动中主要扮演3种角色--消费者、投资者和裁判员,而这种角色转换反映了企业政治资源、企业政治策略、政府合同、竞争性战略与企业政治绩效之间的关系.因此,基于企业政治资源、企业政治策略与企业政治绩效相互影响的理论模型以及10个研究假设,以我国企业作为研究对象,利用问卷调查获得的数据,运用因子分析法验证并解释我国企业政治资源、企业政治策略以及企业政治绩效的类型与层次,采用结构方程方法对我国企业的这种关系进行分析,并验证了其中的大部分假设以及主要观点,对前人有关的部分结论提供了数据支持.     

Managing design and designers for strategic renewal

For producers of traditional or high-tech consumer durables seeking to differentiate themselves from their competitors, the role of the product designer is increasingly taking a key role. In fact design and designers can contribute to corporate strategic renewal, and this paper proposes a framework for understanding how this can be achieved. Building on a study of outstanding innovators in product design – names such as Apple, Alessi and Bang & Olufsen – the authors describe design-driven renewal as a four-phase process stimulated and supported by design, combining continuous product innovation with the periodic revision of the strategic course of the company. For each phase, it discusses the specific role of managers and the most common pitfalls that arise from poor management of the process.     

Managing in uncertain economic times: The case for planning

The traditional organization format in most firms has been to separate production, marketing and distribution and accept a certain amount of friction at the interface of these functions. The price of this friction and the risks inherent in its acceptance make this an increasingly unattractive organizational alternative. New organizational structures that forecast, monitor and control materials flow between raw materials and customers in a systems context are required for intrafirm response and implementation to the challenges of a rapidly changing business environment. The article emphasizes these conclusions against the backcloth of a shortage aconomy.     

Managing Risk of Supply Disruptions: Incentives for Capacity Restoration

A supplier facing the prospect of disruption has to decide whether or not to invest in restoration capability. With restoration capability, if disruption occurs, additional costly effort can be exerted to rebuild capacity, although its outcome is uncertain. We study how a firm (buyer) can use incentive mechanisms to motivate a supplier's investment in capacity restoration, and compare this approach with the traditional approach of diversifying part of the order to an expensive but reliable supplier. Under a Restoration Enhancement (RE) strategy, the buyer uses price and/or order quantity incentives to encourage the supplier's restoration investment decision. Two different cases are considered—when the incentive is committed to ex ante (prior to disruption) and when it is committed to ex post (after disruption). In contrast, under a Supplier Diversification (SD) strategy, the buyer splits orders between a reliable supplier and an unreliable supplier to hedge against the disruption risk. Here, the buyer does not provide any separate incentive to the unreliable supplier. Our analysis indicates that under the RE strategy, where the buyer offers incentives, both the buyer and the supplier (weakly) prefer the ex ante commitment over the ex post one. Furthermore, the RE strategy is preferred over the SD strategy when the unreliable supplier's restoration outcome is more predictable or when a high restoration outcome is more likely. However, the buyer's preference for the SD strategy increases as market demand increases.     

End-to-end process management: implications for theory and practice

The term ‘end-to-end’ process management is now commonplace in the language and practice of operations. Managers are encouraged to migrate from functional process management to end-to-end process management to realise a range of performance improvements. However, these improvements are often elusive; the specific challenges associated with such a migration are under-researched. This paper uses a cross-sector study to identify the challenges of end-to-end process management and to generate practical managerial guidance. Three areas are identified that demand particular managerial attention: the need to move beyond process mapping, the role of IT in process management and maintaining the process infrastructure as a strategic asset. More significantly, the findings highlight the need for greater conceptual clarity regarding the end-to-end concept itself. The existing literature suggests that scope is the primary differentiator of the end-to-end process – the requirement to manage an extended boundary from customer order through to customer fulfilment. However, this research suggests that the end-to-end concept is more complex, comprising of three core constructs with seven dimensions: scope (boundary conditions, sequence/flow and controls); scale (resources and input/output transformation) and complexity (interrelationships and orientation). End-to-end process management involves much more than an extended boundary. It requires a systemic perspective and clarity regarding controls and transforming resources.