When to Mass Customize: The Impact of Environmental Uncertainty*

Previous research on mass customization (MC) has focused on what it is and how it is implemented. In this study we examine when MC is an appropriate strategy for firms to follow by scrutinizing the effects of three environmental uncertainty variables (demand uncertainty, competitive intensity, and supply chain complexity) on the MC–performance relationship. Specifically, we distinguish the direct effect of environmental uncertainty on MC ability and the moderation effect of environmental uncertainty on MC ability's impact on customer satisfaction. We examine six competing hypotheses using data collected from 266 manufacturing plants. Our results show that competitive intensity has a direct positive impact on MC ability. However, demand uncertainty moderates the relationship between MC ability and customer satisfaction, and the direct and positive relationship between MC ability and customer satisfaction holds only when customer demand is highly uncertain. Supply chain complexity neither has a direct relationship with MC, nor moderates the MC–performance relationship. Implications of these research findings are discussed and future research directions are identified.     

Customer Learning Processes,Strategy Selection,and Performance in Business‐to‐Business Service Firms*

Learning about customers takes place through relevant dialogues with those customers, also known as customer relationship management (CRM). As relationships develop, information about the customer is gathered in the firm's customer information systems (CIS): the content, processes, and assets associated with gathering and moving customer information throughout the firm. This research develops a measure of CIS management capabilities based on learning organization theory and measured by the ability to get, store, move, and use information throughout the business unit. This measure is then used to analyze customer learning processes and associated performance in the context of marketing strategic decision making. This study of 209 business services firms finds that generic marketing strategy positioning (low‐cost and differentiation) and the marketing tactics of personalization and customization are related to CIS development. Customer information systems development in turn is associated with higher levels of customer‐based performance, which in turn is associated with increased business growth. Since the strongest association with customer‐based performance is strategy selection, the long‐term benefits of the knowledge gained from the CIS may be in the ability to assist in measuring customer‐based performance, rather than in the ability to immediately contribute to performance. Finally, for these firms, customization and personalization are not directly associated with performance and thus may not be necessary to support every firm's marketing strategy.     

Systems innovation manager

Each year organizations spend a significant amount of money developing new products and processes in an effort to satisfy customer demands and manufacture high-quality products efficiently. Both development processes - product and process, are complex, resource intensive and thrive on innovation. They demand a variety of skills and resources, but in particular, participation among all staff in generating ideas, managing projects and implementing change. There are currently a number of software tools and methods that facilitate change in a systems environment. These range from complex modelling tools to information management tools. The tools have been developed around paradigms, e.g. world class manufacturing, total quality management and business process reengineering. They are often complex, requiring the efforts of skilled designers and managers. Current thinking within a systems environment reflects a more participative and less specialist approach to managing innovation and change. There is a need to create compromise between detailed project engineering and good management practice. This paper introduces a new paradigm centred on good management practice, and identifies the critical issues in systems innovation and change. The paradigm is articulated through a series of change levers and a methodology that guides managers and designers. It is supported by a series of software tools that together bring innovation management to life within the industrial organization.     

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.     

Linking Entrepreneurial Orientation to Environmental Collaboration: A Stakeholder Theory and Evidence from Multinational Companies in an Emerging Market

Revisiting stakeholder theory as a potential theory of the firm giving rise to expectations about organizing, we analyze when and under what circumstances entrepreneurially oriented firms increase their environmental collaboration with suppliers. Specifically, we investigate the association between entrepreneurial orientation and environmental collaboration with suppliers by accounting for the degree of employees’ work engagement and market environment complexity as stakeholder-oriented moderators of this relationship. We test our hypotheses using multi-level analyses on 249 managers nested in 66 multinational companies (MNCs) in Turkey. We find that entrepreneurial orientation positively impacts environmental collaboration with suppliers. A high level of work engagement (as an organizing principle favouring a stakeholder focus) and a low level of market environment complexity (as an organizing principle favouring the customer as an instrumental stakeholder) moderate this linkage. We enrich the debate on entrepreneurial orientation, strategy, and environmental sustainability by providing logic rooted in stakeholder theory of the conditions under which MNCs’ entrepreneurial orientation in emerging markets prioritizes and privileges environmental collaboration with suppliers.     

MANUFACTURING STRATEGY: AT THE INTERSECTION OF TWO PARADIGM SHIFTS

The concept of “manufacturing strategy” is still, in human terms, barely past adolescence. In years, it is younger than most of the MBAs who study it today. So it is not surprising that–like them–it has been undergoing almost continual growth and elaboration throughout its short life, as it tested itself against the real world and as that world evolved. Today it is facing perhaps the greatest challenge in its short history, as it finds itself in the crossfire of debates about core aspects of its two parent disciplines: manufacturing management and competitive strategy. This paper begins by briefly reviewing some of the key steps in the conceptual development of the manufacturing strategy paradigm, then describes the attacks now being directed at both the manufacturing management and the competitive strategy paradigms, and finally discusses the new perspectives that these two paradigm shifts are shedding on some familiar problems.     

AN APPLICATION OF MATERIAL REQUIREMENTS PLANNING TO HIGHER EDUCATION

Material requirements planning (MRP), a comprehensive planning and control technique based upon the dependent demand principle, enables manufacturing organizations to provide better customer service, reduce inventory investment, and increase resource utilization. This paper extends the dependent demand principle to the service sector and thus provides the basis for applying MRP to higher education. In the short run, administrators can schedule the necessary number of required courses and load each course based on student priorities to provide increased customer (i.e., student) service and faculty utilization. In the long run, course enrollment forecasts can be utilized by administrators to plan and control changes in faculty resources across departments and schools.     

Impact of product proliferation on the reverse supply chain

Product variety is one of the most important advantages in highly competitive markets. However, excessive product proliferation's reducing the profit margin has caused increased focus on developing a management method for maximal profit. In a closed-loop supply chain, product proliferation affects the reverse supply chain as well as the forward supply chain. Although increasing the number of product types can better satisfy diverse customer needs, complexity in the product recycling, remanufacturing, and resale processes may erode a firm's overall profits. In this study, we develop a mathematical model for analyzing a capacitated reverse supply chain consisting of a single manufacturer and multiple retailers. We reveal closed-form solutions for the optimal batch size and maximal profit, and discuss managerial insights into how the number of products and other factors can affect both batch size and profit. Finally, we investigate the relationship between product proliferation and the choice of logistics strategy.     

Measuring the Congruence Between Market Requirements and Manufacturing: A Methodology and Illustration*

This paper presents a measurement methodology, based on existing research in the manufacturing strategy and general strategy areas, for evaluating the congruence between market needs and manufacturing plant capabilities. The proposed methodology has several important advantages over current approaches. First, the methodology uses available data and statistical techniques to measure market-manufacturing congruence. As a result, it is not dependent on assumptions about “classic” process choices. Second, the proposed methodology can evaluate the strategic fit between market needs and manufacturing in light of one or more performance criteria. Third, the methodology can be used to derive scalar measures of market-manufacturing congruence, allowing users to evaluate congruence for a large number of products, customers, or market segments. The theoretical basis, research objectives and major steps of the methodology are discussed, followed by an illustrative example from a North American manufacturer. Finally, the applicability of the methodology to a wide range of strategic manufacturing decisions is discussed.     

基于顾客感知价值的服务企业竞争力探析

随着服务业在社会经济发展中的地位日益突出,服务企业竞争力问题开始引起学术界关注。本文将顾客感知价值嵌入传统的企业战略研究范式之中,阐述了顾客感知价值与企业竞争力的关系;在剖析了顾客感知价值概念及其决定因素的基础上,结合服务的基本特性提出了通过改善顾客感知价值提升服务企业竞争力的策略。     

企业内部服务质量、关系质量对内部顾客忠诚的影响机制:基于内部营销视角的实证研究

本文基于内部营销视角,揭示内部服务质量的各个组成因素之间的关系以及内部服务质量对关系质量的影响,进而探索内部服务质量、关系质量对内部顾客忠诚的影响机制。通过对某电信企业内部238份员工样本的采集分析,提出并验证内部服务质量(含实体环境质量、交互质量和结果质量)、关系质量(含内部顾客信任、满意)对内部顾客忠诚的影响机制整合模型。研究发现,内部服务质量的三个维度之间确实存在层级叠加作用,而服务质量则会通过信任这一中介变量影响内部顾客的满意、承诺。内部关系质量的三因素中,内部顾客的承诺水平对内部顾客的忠诚度有直接正向影响,提高对内部顾客的承诺水平是提高内部顾客忠诚度的关键。     

Quality management as a tool for job satisfaction improvement in low-level technology organizations: the case of Ethiopia

Human resources are an important determinant of operational performances as it is crucial for quality improvement. Research suggests that issues related to quality of work life of employees are often overlooked in low technology level organizations in the developing countries. This article aims to investigate the relationship between quality management (QM) practices and job satisfaction (JS) in relation with the Ethiopian manufacturing organizations. Data were collected using a structured survey questionnaire and face-to-face interviews of shop-floor workers. Exploratory and confirmatory factor analysis was used to validate the survey instrument and structural equation modelling was used for the analysis. The findings provide evidence that top management commitment, participation of employees and continuous improvement are significantly and positively associated with JS. However, customer focus has insignificant relationship and surprisingly, teamwork showed unexpected negative relationship with JS. The study provides important insights into the true worth of QM implementation in which it enforces the belief that its practices are the decisive factor in enhancing workplace satisfaction of employees.     

竞争驱动战略转型的人力资本视线研究——以天津中小制造业企业为例

转型升级阵痛中的中国制造业企业,唯有基于人力资本"视线"实施差异化战略、推进激进式创新,才能变革成功,进而在激烈市场竞争中存活下来并形成核心竞争力。以天津市各大工业园区154家中小制造业企业的问卷调查数据为样本,采用结构方程模型对制造业企业创新逆驱战略转型的人力资本"视线"进行统计检验。结果显示,战略层面的"视线"有一个:外部环境竞争性、差异化战略、激进式创新与企业绩效。资源层面"视线"有两个:差异化战略、HRM系统、人力资本、渐进式创新、激进式创新与企业绩效;差异化战略、HRM系统、知识共享与企业绩效。这三条"视线"为中国制造业企业指明了战略转型、创新变革的具体方向。     

An Information‐Processing Approach for Evaluating In‐Store Retail Operational Design Strategies

We develop a model to evaluate retail store operational design strategies using an information‐processing perspective of organizational design. We propose that three model constructs pertaining to in‐store shopper task uncertainty—the product mix complexity, the service production complexity, and the product mix changeover—create shopper encounter information requirements (IR). These requirements can be met using specific retail service operational design choices for managing shopper encounters, namely, designing layouts for self‐service (SS) and providing employees with task empowerment (TE). The model is then operationalized using a two‐stage approach to develop new multi‐item, measurement scales. The psychometric properties and predictive validity of the scales and model are then confirmed by using structural equation modeling with survey data from 175 merchandise retail store managers. We find that our model can be generically applied across the retail industry to understand how shopper encounter IR motivate retailer store design choices and can be used to determine whether to design stores for SS or to provide store employees with TE. We then evaluate the efficacy of the studied store design choices on customer delivery satisfaction, and offer some suggestions for future research.     

Green supply chain performance measurement using the analytic hierarchy process: a comparative analysis of manufacturing organisations

The main purpose of this research is to develop and deploy an analytical framework for measuring the environmental performance of manufacturing supply chains. This work's theoretical bases combine and reconcile three major areas: supply chain management, environmental management and performance measurement. Researchers have suggested many empirical criteria for green supply chain (GSC) performance measurement and proposed both qualitative and quantitative frameworks. However, these are mainly operational in nature and specific to the focal company. This research develops an innovative GSC performance measurement framework by integrating supply chain processes (supplier relationship management, internal supply chain management and customer relationship management) with organisational decision levels (both strategic and operational). Environmental planning, environmental auditing, management commitment, environmental performance, economic performance and operational performance are the key level constructs. The proposed framework is then applied to three selected manufacturing organisations in the UK. Their GSC performance is measured and benchmarked by using the analytic hierarchy process (AHP), a multiple-attribute decision-making technique. The AHP-based framework offers an effective way to measure and benchmark organisations’ GSC performance. This study has both theoretical and practical implications. Theoretically it contributes holistic constructs for designing a GSC and managing it for sustainability; and practically it helps industry practitioners to measure and improve the environmental performance of their supply chain.     

Diagnosing Customer Value: Integrating the Value Process and Relationship Marketing

The concept of value and, more specifically, customer value is of increasing interest to both academics and practitioners. This paper undertakes a substantial review of past and current literature on value and categorizes this considerable body of research into nine streams of literature. Building on the emerging relationship marketing paradigm, it then proposes a framework for relationship value management. Nine core streams of value literature are identified and discussed: consumer values and consumer value; the augmented product concept; customer satisfaction and service quality; the value chain; creating and delivering superior customer value; the customer's value to the firm; customer‐perceived value; customer value and shareholder value; and relationship value. To date, the core focus of most of this literature has been on the nature of value from the perspective of the organization and its customers – the customer–supplier relationship. However, it is argued that the emergence of the relationship marketing paradigm has emphasized the role of other stakeholders in building relationships. An existing multiple stakeholder model of relationship marketing, the six markets model, is introduced and is integrated with key concepts from the value literature to produce a conceptual framework for relationship value management.     

A Framework for Examining the Interface between Operations and Information Systems: Implications for Research in the New Millennium*

Even though much research has been published in operations and information systems, both functional areas find their roots in other disciplines. While operations management evolved from operations research in the 1960s, the field of information systems is of more recent vintage and traces its original roots to computer science. Both disciplines now naturally have come closer together as information and process-technology-based changes force manufacturing firms to become more efficient and customer focused. Market and technology-driven e-commerce initiatives that are likely to dominate business strategies in the future cannot be successfully achieved without a successful integration of operations and information systems. In this paper, we present a unifying framework that can be used to better understand the management of the functional interface between operations and information systems. We also categorize and highlight the contributions of the articles that appear in this special research focus issue. Finally, research directions that emerge from our understanding of this interface are outlined in an effort to stimulate further thinking and research that can advance our knowledge of this interface area.     

LEAN,GREEN, AND THE QUEST FOR SUPERIOR ENVIRONMENTAL PERFORMANCE

We examine the relationship between lean manufacturing practices and environmental performance as measured in terms of air emissions and resource use. We draw on two unique surveys of 31 automobile assembly plants in North America and Japan, which contain information on manufacturing practice and environmental performance, as well as in‐depth interviews with 156 plant level employees at 17 assembly plants. Our survey results and interviews suggest that lean management and reduction of air emissions of volatile organic compounds (vocs) are associated negatively. Lean manufacturing practices contribute to more efficient use of paints and cleaning solvents, but these in‐process changes are not sufficient to meet the most stringent air regulations. We found some evidence to support the link between lean practices and resource efficiency. While our survey results were in hypothesized direction, they were not statistically significant. In‐depth semi‐structured interviews, however, suggest a more robust relationship, and we use them to describe some mechanisms by which all three aspects of lean management (buffer minimization, work systems, and human resource management) may be related to environmental management practices and performance.