Bringing Business into Sociotechnical Theory and Practice

Current developments in the sociotechnical framework address a number of vital issues that failed to occupy the high ground in its formative years. These include: (i) the purpose of the systems, to create customer value under social and resource constraints, (ii) the context or external business environment, and (iii) the dynamics of the sociotechnical system. Due attention to the dominant issues of purpose, context, and their dynamics make it more meaningful to speak of sociotechnical business systems (STBS) and organizational learning instead of sociotechnical systems (STS) and individual learning. In STBS each unit in an organization has business responsibilities and goal-based couplings with its environment and focuses on the creation of customer value. The implications of this shift from STS to STBS are discussed and illustrated with current research and two summary case studies.     

REENGINEERING CHANNEL REORDERING PROCESSES TO IMPROVE TOTAL SUPPLY-CHAIN PERFORMANCE

This paper discusses the relationship between business process reengineering and channel performance for firms implementing electronic data interchange (EDI) linkages within the U.S. grocery industry. Both quantitative and qualitative data sources are combined to test the hypothesis that channel transformation involving adoption of EDI and redesign of replenishment processes enables performance improvements more than an order of magnitude greater than implementation of EDI alone. This new process, enabled by EDI, provides retailers with 50- 100% higher inventory turns for products on continuous replenishment processes (CRP) relative to retailer performance using traditional ordering processes. Firms adopting EDI without using CRP to reengineer the ordering processes have failed to realize any statistically significant improvements in either inventory levels or warehouse stockouts. This research provides evidence to support the claims of process reengineering that are common in the popular business press, but for which statistically significant empirical evidence is minimal. The findings of the research also demonstrate the potential improvements that firms can realize through extending the business process reengineering concept to include the firms' entire supply chain.     

Multi‐sited accumulation of capital: Cape Verdean returnees and small‐scale business

In recent years, policymakers have portrayed return migration as positive for development. In both migrant sending and migrant receiving countries, policymakers expect the transfer of economic, cultural and social capital by returnees to stimulate economic growth. Inherent in these assumptions is the idea of a unidirectional flow of capital from northern countries of immigration to the countries of return. The objective of this article is to contest this idea of a one‐way transfer of capital through a case study of Cape Verdean returnee business owners. To what extent have they accumulated their various forms of capital before emigration, during their sojourn abroad or after return? In this article, I examine the returnees' multi‐sited accumulation of capital and how it corresponds to the resources they need to run a sustainable business. In addition, I analyse how they adapt capital accumulated abroad to the conditions in Cape Verde.     

Decision-making practices in commercial enterprises: A cybernetic intervention into a business model

Abstract

This article presents a decision-making framework and a technology that senior managers can use to steer the enterprise within a volatile and competitive commercial environment. The main aim of introducing such a technology would be to maximize the enterprise's value vector by ensuring that business objectives are consistently unfolded throughout the enterprise and used by all managers to make decisions that are consistent with the purpose and objective of the organization. The article illustrates how a cybernetic intervention into the business model of a large organization can be used to achieve this.     

Employee Work Attitudes: The Subtle Influence of Gender

Using the construct of job satisfaction, this study examined work attitudes of 286 females and 416 males employed in 27 female-owned and 29 male-owned small businesses in three industries: construction, manufacturing, and distribution. Job satisfaction scores (dependent variables) were analyzed with regard to the interaction of owner employee gender. Demographic and job-related variables were also considered. The gender-moderated results are discussed in terms of methodological implications for conducting research regarding work attitudes.     

EXPLORING LINKAGES BETWEEN MANUFACTURING STRATEGY,BUSINESS STRATEGY,AND ORGANIZATIONAL STRATEGY

In recent years there has been an increased emphasis on the development of manufacturing and business strategies. In spite of that high level of emphasis, limited empirical research has been published on the linkage between manufacturing strategy, business strategy, and organizational performance. Our study examines that linkage. Our main contribution lies in (i) building constructs for some important elements of manufacturing strategy and business strategy and (ii) testing the impact of linkage between manufacturing strategy and business strategy on organizational performance. The study is based on 175 responses from senior executives in manufacturing organizations.     

Contextualizing Business Ethics: Anomie and Social Life

The objective of this paper is to explore howthe current interest in Business Ethics can be locatedwithin an analysis of contemporary society which takesinto account the prevalence of moral uncertainty along with the concomitant desire to(re)establish some form of normative order. As such,Business Ethics may be seen as a socially constructedfield of study which reflects broaderchanges and controversies within society. Yet as a body of knowledge,Business Ethics articulates epistemological doubts. Twodistinctive themes in Business Ethics discourse areconsidered — the modernist/rationalist and thepostmodernist/relativist. It is argued that in different ways, each canbe seen as both an expression of, and a reaction to, theincreasing incidence of anomie in society. Theimplications for organizational practices are thenconsidered through the example of Corporate Codes ofEthics and the problem of establishing consensus wherethe grounds for any claim to moral authority areproblematic.     

UPSTREAM VOLATILITY IN THE SUPPLY CHAIN: THE MACHINE TOOL INDUSTRY AS A CASE STUDY

Cyclicality is a well‐known and accepted fact of life in market‐driven economies. Less well known or understood, however, is the phenomenon of amplification as one looks “upstream” in the industrial supply chain. We examine the amplification phenomenon and its implications through the lens of one upstream industry that is notorious for the intensity of the business cycles it faces: the machine tool industry. Amplification of demand volatility in capital equipment supply chains, e. g., machine tools, is particularly large relative to that seen in distribution and component parts supply chains. We present a system dynamics simulation model to capture demand volatility amplification in capital supply chains. We explore the lead‐time, inventory, production, productivity, and staffing implications of these dynamic forces. Several results stand out. First, volatility hurts productivity and lowers average worker experience. Second, even though machine tool builders can do little to reduce the volatility in their order streams through choice of forecast rule, a smoother forecasting policy will lead companies to retain more of their skilled work force. This retention of skilled employees is often cited as one of the advantages that European and Japanese companies have had relative to their U. S. competitors. Our results suggest some insights for supply chain design and management: downstream customers can do a great deal to reduce the volatility for upstream suppliers through their choice of order forecast rule. In particular, companies that use smoother forecasting policies tend to impose less of their own volatility upon their supply base and may consequently enjoy system‐wide cost reduction.     

IMPROVING POM LEARNING: SYSTEMS THINKING AND TRANSPARENT-BOX BUSINESS SIMULATORS

It is well known by systems thinkers that the behavior of complex systems (for example, the company as a whole or the operations subsystem) depends upon their structure (the set of system variables and their interrelationships). In our opinion, the methods and tools presently used for production and operations management (pom) teaching are insufficient to cope with an ever more complex reality. Over the last few years, the research group GIdEao, following an original idea (Machuca 1992a, 1992b) has been developing transparent-box business simulators (TBBSS) based on systems thinking and system dynamics models; the aim was to maintain the advantages of the existing didactic tools while mitigating their drawbacks. The most distinctive feature of TBBSS (as opposed to the traditional black-box business games) is that the structure of the system to be simulated is always accessible to the users, who can thus reflect on the causes underlying the results obtained and thereby improve decision-making and the learning process. We will show how to work with TBBSS, and we will comment on the results obtained in an empirical experiment which aims to measure the influence of TBBSS on the learning process.     

BUSINESS STRATEGY,MANUFACTURING FLEXIBILITY,AND ORGANIZATIONAL PERFORMANCE RELATIONSHIPS: A PATH ANALYSIS APPROACH

It has been argued in the literature that business strategy and manufacturing flexibility independently affect the performance of an organization. However, no empirical examination of the interrelationship among these three constructs has been performed. In this paper, based on a field study of 269 firms in the manufacturing industry, the identified constructs have been used to test a theoretical model using path analysis techniques. Our results indicate that business strategy contributes both directly and indirectly to organizational performance. The findings provide evidence of direct effects of (i) business strategy on manufacturing flexibility and (ii) manufacturing flexibility on organizational performance.