Flexibility configurations: Empirical analysis of volume and product mix flexibility

In this paper we address flexibility and investigate the relationship between volume and product mix flexibility. One view of flexibility is that of being a capability in itself; another view is that of flexibility as an enabler, providing the manufacturing system with properties on which other competitive capabilities are built. In this research, the latter view of flexibility is used, where flexibility acts as a second order competitive criterion. The aim is to differentiate between two dimensions of flexibility important to the manufacturing value chain, i.e., volume and product mix flexibility, and to investigate how different flexibility configurations are related to various manufacturing practices. A clustering research approach is used to identify groups of companies based on flexibility configurations. The groups are then analyzed with respect to characteristics and impact on operational performance. For the empirical investigation, we use empirical data from the high performance manufacturing (HPM) study, including three industries and seven countries—a total of 211 plants. We find that flexibility configurations based on high or low levels of volume and mix flexibility combinations show significant differences both in terms of operational performance, and in terms of emphasis put into different flexibility source factors.     

An integrative approach to assess environmental and economic sustainability in multi-tier supply chains

Abstract

Multi-tier supply chain sustainability is paramount to achieve corporate sustainability, due to the significant impacts from organisations beyond the focal firm boundaries and its direct suppliers. However, including environmental considerations within the dominant profit-centric logic of supply chain related decisions is prone to generate sustainability tensions. This work aims to support organisations address tensions between sustainability dimensions by adopting an integrative approach for sustainable supply chain management performance assessment thanks to an innovative eco-intensity based performance assessment method, which achieves a balanced consideration of environmental and economic performance in a weak sustainability perspective. The method, using primary data sourced from actual practice and featuring an indirect multi-tier approach with decentralised responsibilities across organisations, is applied to a case study of a machinery supply chain. The proposed integrative approach can support addressing sustainability tensions in the area of sustainable supply chain management, facilitate sustainable supplier evaluation and identify supply chain hotspots for operational improvement.     

Sickness presenteeism and sickness absence over time: A UK employee perspective

This paper examined the influence of sickness presenteeism (SP), defined here as going to work despite illness, and sickness absenteeism (SA) behaviour on employee psychological well-being, work performance and perceived organisational commitment in a sample of 552 UK workers. Self-report measures were administered on 2 occasions, separated by 1 year, to employees from 4 public sector and 2 private sector organisations. Structural equation modelling was used to evaluate simultaneous influences of SP and SA on outcomes over time. Results suggested that employees reporting SP reported lower work performance in comparison to those reporting no SP, when measured concurrently but not over time. Employees reporting any SP in the previous 3 months showed relatively reduced psychological well-being but there was no significant association over time. Six or more days SP was associated with a reduction in employee perceptions that their organisation was committed to them, concurrently and over time. There were no significant influences of SA on any outcome measure. Our results strengthen previous research and suggest that SP, but not SA, has implications for individual outcomes. The findings have implications for the way organisations manage their sickness absence systems.     

Using Malmquist Indexes to measure changes in the productivity and efficiency of US accounting firms before and after the Sarbanes–Oxley Act

There have been many criticisms of the Sarbanes–Oxley (SOX) Act passed in July of 2002 to correct business accountability and performance practices. The act has a major emphasis on accounting and its practices. This paper attempts a response to these criticisms by investigating changes in productive efficiency for 62 of the largest US public accounting firms between the periods (2000–2001) and (2003–2004)—the periods before and after enactment of SOX in July of 2002. DEA is used to calculate Malmquist indexes of productivity and efficiency changes. This index is used because it can distinguish between changes in technical efficiency, which limit the possibilities, and changes in the performance efficiencies for each firm. Contrary to many of the criticisms, results indicate that accounting firms have exhibited significant post SOX growth in productive efficiency which is better than pre-SOX performances.     

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.     

Value creation through collaborative supply chain: holistic performance enhancement road map

This paper proposes an integrated novel framework between B2B-SCM using data mining techniques such as K-Means based on particle swarm intelligence (particle swarm optimisation) and association rule. It constructs relationship rules of holistic performance enhancement road map. The data-set of relationships between enterprise and its direct customers of the case study organisations in France was used for demonstration. The experiment results show how domain managers powerfully utilise the graphical analysis results to provide the holistic performance improvement and weakness resolution relationship rules. In the long run, organisations are able to use this framework to design and adjust their units to conform the exact customer needs. This paper introduces and explains a new idea of measuring value added along the supply chain from a collaborative perspective. The extended model is adapted from our previous model and from balanced scorecard model. It provides a tool to measure tangible and intangible value between partners.     

A study of the use of business improvement initiatives: the association with company size and level of national development

This paper investigates the awareness, use and effectiveness of improvement initiatives in organisations of different sizes and in different countries. In particular, comparisons are made between large firms and small and medium enterprises (SMEs), between organisations in the developing and developed worlds and between organisations in China and India and the rest of the developing world. A questionnaire survey of 453 organisations across 44 countries was conducted with the findings indicating that there are significant differences in comparability of tools. For some tools there are no significant differences between developed and developing countries as well as between large organisations and small organisations. For other tools, there are significant differences with organisations in developing countries, in general, more aware and more likely to use business improvement initiatives when compared to organisations in developed countries. Similarly, organisations in China and India have a higher awareness of and are more likely to adopt improvement initiatives when compared to the rest of the developing world. Finally, larger firms are more aware and more likely to use improvement initiatives when compared to SMEs.     

The price-setting newsvendor with service and loss constraints

Current performance measurement systems consider not only financial measures, like costs and profits, but also non-financial indicators with respect to customer service, quality and flexibility. Using the newsvendor model, we analyse the respective influence of these possibly conflicting performance measures on important operations and marketing decisions, for instance the order quantity and the selling price of a product. As in the classical newsvendor model for price-independent as well as price-dependent demand distribution, the objective of the firm is to maximise expected profit. In this paper, we also consider a service constraint—a lower bound for the level of product availability—and a loss constraint—an upper bound for the probability of a loss occurring. For both models, we provide conditions for the existence of solutions. We then analyse the influence of demand variability using a set of conditions specifying the quantiles of the predetermined performance measures: a higher variability of demand implies a smaller admissible region of the decision variables. In the price-independent case, the optimal solution has a control-limit structure: the optimal order quantity is thus given either by the classical newsvendor solution or by the control-limits corresponding to the constraints. In the price-setting model with multiplicative demand, this structure is used to check whether small admissible prices are determined by the service constraint or by the loss constraint. Using these structural results, a procedure is developed to more easily enable the computation of the optimal values of the order quantity, selling price and expected profit.     

Eco-efficient supply chain networks: development of a design framework and application to a real case study

This paper presents a supply chain network design framework that is based on multi-objective mathematical programming and that can identify ‘eco-efficient’ configuration alternatives that are both efficient and ecologically sound. This work is original in that it encompasses the environmental impact of both transportation and warehousing activities. We apply the proposed framework to a real-life case study (i.e. Lindt & Sprüngli) for the distribution of chocolate products. The results show that cost-driven network optimisation may lead to beneficial effects for the environment and that a minor increase in distribution costs can be offset by a major improvement in environmental performance. This paper contributes to the body of knowledge on eco-efficient supply chain design and closes the missing link between model-based methods and empirical applied research. It also generates insights into the growing debate on the trade-off between the economic and environmental performance of supply chains, supporting organisations in the eco-efficient configuration of their supply chains.     

Developing management capability within a horizontal supply chain in performance measurement deployment and evolution: a Dynamic Capabilities and Goal Theory perspective

Abstract

Complex collaboration in rapidly changing business environments create challenges for management capability in Utility Horizontal Supply Chains (UHSCs) involving the deploying and evolving of performance measures. The aim of the study is twofold. First, there is a need to explore how management capability can be developed and used to deploy and evolve Performance Measurement (PM), both across a UHSC and within its constituent organisations, drawing upon a theoretical nexus of Dynamic Capability (DC) theory and complementary Goal Theory. Second, to make a contribution to knowledge by empirically building theory using these constructs to show the management motivations and behaviours within PM-based DCs. The methodology uses an interpretive theory building, multiple case-based approach (n = 3) as part of a USHC. The data collection methods include, interviews (n = 54), focus groups (n = 10), document analysis and participant observation (reflective learning logs) over a five-year period giving longitudinal data. The empirical findings lead to the development of a conceptual framework showing that management capabilities in driving PM deployment and evolution can be represented as multilevel renewal and incremental Dynamic Capabilities, which can be further understood in terms of motivation and behaviour by Goal-Theoretic constructs. In addition, three interrelated cross-cutting themes of management capabilities in consensus building, goal setting and resource change were identified. These management capabilities require carefully planned development and nurturing within the UHSC.     

A hole in the ladder: How to reconcile the benefits of equality with the merits of hierarchy

During recent decades, many researchers have advocated the benefits of equality over hierarchy. These scholars, for example, have argued that income should be uniform across the organization, layers of management should be dismantled, and that employees should be granted opportunities to participate in decisions that affect their lives. Yet, many complications of equality have also been unearthed. For instance, variability in income is sometimes positively associated with performance, employees tend to prefer organizations that are characterized by many tiers of management, and employee participation in all key decisions can undermine efficiency. Managers, therefore, must introduce measures that temper these complications. To identify suitable measures, managers need to understand how different dimensions of equality impinge on the determinants of wellbeing and performance. To fulfill this need, this paper first distinguishes three dimensions of equality: participation, authority, and income. Next, this paper invokes a variety of theories—from compensatory control to dominance complementarity—to understand how each dimension of equality affects the core needs of individuals, as defined by self-determination theory. Equality of authority tends to impede all three needs: relatedness, autonomy, and competence. Equality of participation and equality of income, however, foster all three needs. One exception is that equality of income may diminish competence on tasks that demand the application of established principles rather than intuition. This framework clarifies the designs and practices of organizations that may optimize wellbeing and enhance performance.     

基于自由处置性的网络系统效率评价模型研究

网络系统生产可能集是构建网络DEA模型的基础,而相邻生产子过程的投入产出连接条件则是构造生产可能集的关键。现有的网络DEA模型在本质上都假设所有子过程的投入产出都满足强自由处置性,然而在实际生产管理活动中,这一假设未必成立。本文从各类自由处置公理出发,系统地研究了各种类型的子过程投入产出连接条件,构建了一般网络系统的生产可能集,给出了相应的等价形式,并构建了相应的网络DEA模型用于评价决策单元的效率。最后利用本文提出的方法和模型对我国上市银行的效率进行了评价。本文的研究对于一般网络系统的绩效评价和改进具有重要的意义。     

Motor vehicle recalls: Trends,patterns and emerging issues

This paper examines patterns and trends in motor vehicle safety recalls using a dataset based on 23.1 million vehicles registered in the UK between 1992 and 2002. A safety recall occurs when vehicle manufacturers call vehicles that have been sold and are in use back to their dealerships for safety-related remedial work. Safety recalls can be a strategic concern for car makers, having the potential to damage brand value, reduce stock price as well as resulting in significant direct costs. The data from this study show that the incidence of vehicle recalls is increasing—between 1998 and 2002 there was an average of over 120 recall incidents per annum in the UK, compared to less than 50 per annum between 1992 and 1994. Total numbers of vehicles recalled show no clear trend over time, but the absolute level of recalls year on year is very high: in the UK, 10.8 million vehicles were recalled during 1992–2002, representing 47% of all vehicle UK registrations in the period. Moreover, there are substantial differences in recall rates between different car manufacturers, suggesting that recall rates may be a useful indicator of process performance in the automotive design-and-production value chain. European and American producers have recall rates that are nearly three times greater than their East Asian counterparts. This paper concludes with some ideas that may explain these patterns and suggests an agenda for further research.     

A model of information activity in organisations

This article describes a computer model of the information activity in an organisation and its evolution over time. The model can be tuned to particular organisations and used to explore the impacts of strategies for the introduction of new information technology. The model structure is described and its applications are outlined. Some conclusions are drawn on the usefulness of computer models in this context.     

Capturing Relatedness: Comprehensive Measures based on Secondary Data

This paper presents new measures of technological and customer‐side relatedness constructed from widely available secondary data. Relatedness is a concept central to predicting the existence and nature of a relationship between corporate diversification and firm performance. Yet, finding appropriate measures has been an ongoing struggle. The widely used SIC‐based entropy measure has low construct validity, and survey‐based measures are hard to replicate across firms and industries and over time. The measures we develop significantly outperform established measures in explaining variation in firm performance across firms and over time, and both sources of relatedness are found to be independent and significant explanations of firm performance.     

Can a team have too much cohesion? The dark side to network density

The goal of most work teams is high performance. Prior studies suggest that performance within work groups is influenced by that group’s social network topology. Research has generally revealed to date that group cohesion (i.e., network density) is positively related to team performance under certain conditions. However, more recent research has indicated that this is not the full story. Recent research suggests that an inverse curvilinear relationship exists between social network measures (of which group cohesion is one) and team performance. In response to the need for understanding this relationship more fully, and leveraging the promising new insights that can be garnered with the use of social network analysis (SNA), this study employs SNA as a tool to explore the structural cohesiveness of teams of travel agents. This research extends our understanding of the relationship between intragroup social network relations and team performance by confirming an inverse curvilinear relationship exists between group cohesion and team performance. This paper leverages email communication to determine the social networks of each team, and then examines such in light of team performance. In total, an analysis of more than 7 million emails was undertaken. This study was conducted with work teams within a service organization. Each team in the study carries out the same tasks, i.e., identical task contingency, yet represents a distinct unit of analysis. The study confirms that social network topology is a valuable predictor of team performance and confirms that, like so many other social network measures, group cohesion and team performance share an inverse ‘U’ shaped relationship, not strictly a positive one as previously posited.     

Whose company is it? The concept of the corporation in Japan and the west

This article examines the differences in the concept of the corporation and their possible implications for corporate performance, between Japan on the one hand and the United States and Europe (Germany, UK and France) on the other. The Japanese concept is used as the standard against which the other models are compared. The concept of the corporation is defined here as the answer to the question: ‘In whose interest should the firm be managed?’¹ This is the foundation on which corporate governance and the monitoring system for the CEO is built. The analysis is focused on large publicly-held corporations with widely diffused ownership.     

Strategic performance measurement in a healthcare organisation: A multiple criteria approach based on balanced scorecard

The Balanced Scorecard (BSC) methodology focuses on major critical issues of modern business organisations: the effective measurement of corporate performance and the evaluation of the successful implementation of corporate strategy. Despite the increased adoption of the BSC methodology by numerous business organisations during the last decade, limited case studies concern non-profit organisations (e.g. public sector, educational institutions, healthcare organisations, etc.). The main aim of this study is to present the development of a performance measurement system for public health care organisations, in the context of BSC methodology. The proposed approach considers the distinguished characteristics of the aforementioned sector (e.g. lack of competition, social character of organisations, etc.). The proposed measurement system contains the most important financial performance indicators, as well as non-financial performance indicators that are able to examine the quality of the provided services, the satisfaction of internal and external customers, the self-improvement system of the organisation and the ability of the organisation to adapt and change. These indicators play the role of Key Performance Indicators (KPIs), in the context of BSC methodology. The presented analysis is based on a MCDA approach, where the UTASTAR method is used in order to aggregate the marginal performance of KPIs. This approach is able to take into account the preferences of the management of the organisation regarding the achievement of the defined strategic objectives. The main results of the proposed approach refer to the evaluation of the overall scores for each one of the main dimensions of the BSC methodology (i.e. financial, customer, internal business process, and innovation-learning). These results are able to help the organisation to evaluate and revise its strategy, and generally to adopt modern management approaches in every day practise.     

Assessing the effects of ‘big brother’ in a workplace: The case of WAST

The extensive and growing use of electronic performance monitoring in organisations has resulted in considerable debate over the years. This paper focuses on workplace monitoring at the Welsh Ambulance Services Trust (WAST), a provider of emergency services for the people of Wales, in the UK. The key objectives include examining the nature of performance monitoring at its call centres and determining whether employees are micromanaged through the use of workplace surveillance. The findings cover staff (both management and non-management) perceptions, gathered through a questionnaire and interviews as well as observations made in the study areas. The findings revealed that workplace electronic monitoring is not intrinsically all good or all bad. It is value neutral and offers a win–win situation.     

Modelling the impact of performance management practices on firm performance: interaction with human resource management practices

The paper draws on resource orchestration theory to investigate whether and how performance management (PM) practices interact with human resource management (HRM) practices in organisations as well as how this interaction affects firm performance. The proposed theoretical model was tested through a survey of 192 UK firms using Partial Least Squares approach for structural equations modelling. The findings show that the effect of PM practices on firm performance is better explained when the interaction between these practices and other organisational practices is considered. In particular, we examine the extent to which the interaction between PM practices and commitment-based HRM practices affects performance. We find that when HRM practices and PM practices are misaligned, their effect on performance can be negative. This is the first paper in the PM literature that establishes the relationship between PM and HRM practices in organisations and demonstrates the effect of this relationship on firm performance.