International Journal of Operations & Production Management

Csiki, Ottó; Demeter, Krisztina; Losonci, Dávid

2023 International Journal of Operations & Production Management

doi: 10.1108/ijopm-03-2022-0221

In the multilayered capability framework the authors integrate two layers, namely functional level production capabilities and shop floor-level production routines (PRs). The authors examine how these two layers are interlinked, and additionally, they explore how these layers contribute to firm performance.Design/methodology/approachThe authors tested the hypotheses using structural equation modeling (SEM) on a sample of manufacturing firms.FindingsRegarding the capability layers, the authors found that at the functional level, production dynamic capabilities (PDCs) drive the renewal of production ordinary capabilities (POCs), and that at the shop floor level, deployment of Industry 4.0 (I4.0) is influenced by lean production. Regarding the direct links between capability layers, the authors showed that PDCs and POCs have different roles in shaping shop floor PRs: PDCs is linked to I4.0, and lean methods is impacted by POCs. Concerning performance implications, only PDC and POC have significant impact on firm performance (the latter is negative), while PRs do not.Research limitations/implicationsAlthough, contextual factors (e.g. technology intensity, size) do not influence our findings, the potential country-effect and the dominance of medium-sized firms offer future research directions.Practical implicationsIf production managers want to contribute to business performance, they should be more susceptible to resource renewal (PDCs) than to their general (POCs) or specific (PRs) exploitation efforts. As they exploit current resource stocks, they face a trade-off: they must consider that beyond their positive impacts on operational performance, their implications on business performance will be controversial.Originality/valueScholars usually examine one layer of capabilities, either capabilities or routines, and associate that with one dimension of performance, either financial and market measures or operational indicators. The authors propose a multilayered capability framework with a complex view on performance implications.

Laari, Sini; Lorentz, Harri; Jonsson, Patrik; Lindau, Roger

2023 International Journal of Operations & Production Management

doi: 10.1108/ijopm-06-2022-0382

Drawing on information processing theory, the linkage between buffering and bridging and the ability on the part of procurement to resolve demand–supply imbalances is investigated, as well as contexts in which these strategies may be particularly useful or detrimental. Buffering may be achieved through demand change or redundancy, while bridging may be achieved by the means of collaboration or monitoring.Design/methodology/approachThis study employs a hierarchical regression analysis of a survey of 150 Finnish and Swedish procurement and sales and operations planning professionals, each responding from the perspective of their own area of supply responsibility.FindingsBoth the demand change and redundancy varieties of buffering are associated with procurement's ability to resolve demand–supply imbalances without delivery disruptions, but not with cost-efficient resolution. Bridging is associated with the cost-efficient resolution of imbalances: while collaboration offers benefits, monitoring seems to make things worse. Dynamism diminishes, while the co-management of procurement in S&OP improves procurement's ability to resolve demand–supply imbalances. The most potent strategy for tackling problematic contexts appears to be buffering via demand change.Practical implicationsThe results highlight the importance of procurement in the S&OP process and suggest tactical measures that can be taken to resolve and reduce the effects of supply and demand imbalances.Originality/valueThe results contribute to the procurement and S&OP literature by increasing knowledge regarding the role and integration of procurement to the crucial process of balancing demand and supply operations.

Momeni, Khadijeh; Raddats, Chris; Martinsuo, Miia

2023 International Journal of Operations & Production Management

doi: 10.1108/ijopm-04-2022-0259

Digital servitization concerns how manufacturers utilize digital technologies to enhance their provision of services. Although digital servitization requires that manufacturers possess new capabilities, in contrast to strategic (or dynamic) capabilities, little is known about how they develop the required operational capabilities. The paper investigates the mechanisms for developing operational capabilities in digital servitization.Design/methodology/approachThis paper presents an exploratory study based on 15 large manufacturers operating in Europe engaged in digital servitization.FindingsThree operational capability development mechanisms are set out that manufacturers use to facilitate digital servitization: learning (developing capabilities in-house), building (bringing the requisite capabilities into the manufacturer), and acquiring (utilizing the capabilities of other actors). These mechanisms emphasize exploitation and exploration efforts within manufacturers and in collaborations with upstream and downstream partners. The findings demonstrate the need to combine these mechanisms for digital servitization according to combinations that match each manufacturer’s traditional servitization phase: (1) initial phase - building and acquiring, (2) middle phase - learning, building and acquiring, and (3) advanced phase - learning and building.Originality/valueThis study reveals three operational capability development mechanisms, highlighting the parallel use of these mechanisms for digital servitization. It provides a holistic understanding of operational capability development mechanisms used by manufacturers by combining three theoretical perspectives (organizational learning, absorptive capacity, and network perspectives). The paper demonstrates that digital servitization requires the significant application of building and acquiring mechanisms to develop the requisite operational capabilities.

Saabye, Henrik; Powell, Daryl John; Coughlan, Paul

2023 International Journal of Operations & Production Management

doi: 10.1108/ijopm-06-2022-0371

Being acquainted with both lean and action learning in theory and in practice, this study finds that the theoretical complementarity of these two research streams has traditionally been underexploited. In this conceptual paper, this study aims to advance the theoretical understanding of lean by exploring the complementarity of lean thinking and action learning leading to a proposed integrated theory of these two research streams. Target audience is the operations management research community.Design/methodology/approachBy deliberately adopting a process of theorising, this paper explores, reflects upon and combines individual experiences of researching, teaching and engaging in lean and action learning as operations management scholars.FindingsHaving taken a gemba walk through the literature and practices of lean and action learning, this study views and notices a systematic and complementary relationship between the two domains. The overlapping theoretical and practical complementarities of lean and action learning suggest that these two research streams are ripe for synthesis into an integrated theory. This finding provides an opportunity to (1) progress towards an integrative design of interventions leading to more sustainable lean system adoptions and (2) add new depth to our theoretical explanation of the success and failures of lean system adoptions.Originality/valueThis paper contributes an original integrated theory perspective on lean and action learning.

van Dun, Desirée H.; Kumar, Maneesh

2023 International Journal of Operations & Production Management

doi: 10.1108/ijopm-06-2022-0370

Many manufacturers are exploring adopting smart technologies in their operations, also referred to as the shift towards “Industry 4.0”. Employees' contribution to high-tech initiatives is key to successful Industry 4.0 technology adoption, but few studies have examined the determinants of employee acceptance. This study, therefore, aims to explore how managers affect employees' acceptance of Industry 4.0 technology, and, in turn, Industry 4.0 technology adoption.Design/methodology/approachRooted in the unified theory of acceptance and use of technology model and social exchange theory, this inductive research follows an in-depth comparative case study approach. The two studied Dutch manufacturing firms engaged in the adoption of Industry 4.0 technologies in their primary processes, including cyber-physical systems and augmented reality. A mix of qualitative methods was used, consisting of field visits and 14 semi-structured interviews with managers and frontline employees engaged in Industry 4.0 technology adoption.FindingsThe cross-case comparison introduces the manager's need to adopt a transformational leadership style for employees to accept Industry 4.0 technology adoption as an organisational-level factor that extends existing Industry 4.0 technology user acceptance theorising. Secondly, manager's and employee's recognition and serving of their own and others' emotions through emotional intelligence are proposed as an additional individual-level factor impacting employees' acceptance and use of Industry 4.0 technologies.Originality/valueSynthesising these insights with those from the domain of Organisational Behaviour, propositions were derived from theorising the social aspects of effective Industry 4.0 technology adoption.

Miocevic, Dario; Srhoj, Stjepan

2023 International Journal of Operations & Production Management

doi: 10.1108/ijopm-09-2022-0592

Coronavirus disease 2019 (COVID-19) has had a tremendous negative effect on the economies around the world by infusing uncertainty into supply chains. In this paper, the authors address two important research questions (RQs): (1) did COVID-19 wage subsidies impact small and medium enterprises (SMEs) to become more flexible towards the SMEs' business customers and (2) can such flexibility be a source for greater resilience to the crisis? As a result, the authors investigate the relationship between governmental wage subsidies and SMEs' flexibility norms towards the SMEs' business customers (study 1). The authors further uncover when and how flexibility towards existing customers contributes to SME resilience (study 2).Design/methodology/approachThe authors frame the inquiry under the resource dependence theory (RDT) and behavioural additionality principle. The authors use survey methodology and test the assumptions in study 1 (n = 225) and study 2 (n = 95) on a sample of SMEs from various business-to-business (B2B) industries in Croatia.FindingsOverall, in study 1, the authors find that SMEs that receive governmental wage subsidies have greater flexibility norms. However, this relationship is significantly conditioned by SMEs' competitive profile. SMEs that strongly rely on innovation are more willing to behave flexibly when receiving subsidies, whereas SMEs driven by branding do not. Study 2 sheds light on when flexibility towards existing customers increases SME resilience. Findings show that flexibility norms are negatively related to resilience, but this relationship is becoming less negative amongst SMEs with lower financial dependence on the largest customer.Originality/valueThis study extends RDT in the area of firm–government relationships by showing that wage subsidies became a source of power for the Government and a source of dependency for SMEs. In such cases, the SMEs receiving those subsidies align with the governmental agenda and exhibit higher flexibility towards the SMEs' customers. Drawing arguments from behavioural additionality, the authors show that this effect varies due to SMEs' attention and organisational priorities resulting from different competitive profiles. Ultimately, the authors showcase that higher flexibility norms can contribute to resilience if the SME restructures its dependency by having a less-concentrated customer base.

Wong, Ricky S.

2023 International Journal of Operations & Production Management

doi: 10.1108/ijopm-09-2022-0604

Despite its significance, research on how attribute framing affects ordering decisions in dual sourcing remains insufficient. Hence, this study investigated the effects of attribute framing in a sourcing task involving certain and uncertain qualities of two suppliers and analysed the role of attention with respect to suppliers' information in framing effects.Design/methodology/approachThe impacts of attribute framing on sourcing decisions were demonstrated in two online between-subject (2 × 2 factorial) experimental studies involving professional samples. Study 2 was an eye-tracking experiment.FindingsIn Study 1 (N = 251), participants presented with a “high-quality” rather than a “low-quality” frame made different sourcing decisions, opting for larger percentage of order(s) from a supplier under the “high-quality” frame. This pattern holds true for suppliers who differ in risk. This finding was replicated in Study 2 (N = 129). Attention asymmetry related to the information on supplier quality contributes to this effect. Attention directed towards information regarding the supplier's quality under a positive frame mediated the relationship between attribute framing and sourcing decisions.Practical implicationsHighlighting the positive attributes of a risky supplier is essential when ordering from the risky supplier is an optimal decision. It is advantageous for suppliers to highlight positive rather than negative attributes when describing the quality of their components against others.Originality/valueThis is the first study to examine the effect of attention on the relationship between attribute framing and dual sourcing. This presents a new behavioural perspective wherein managers' attention to information plays a vital role.

Karaosman, Hakan; Marshall, Donna

2023 International Journal of Operations & Production Management

doi: 10.1108/ijopm-05-2022-0348

This impact pathways paper proposes that operations and supply chain management (OSCM) can help to ensure that the transition from a high-carbon to low-carbon fashion industry takes place in a just, inclusive and fair way. By immersion in fashion brands, suppliers and workers' realities across multiple supply chains, the authors identify challenges and issues related to just transitions, whilst proposing research pathways to inspire future OSCM research and collaboration using innovative and creative methods to answer complex questions related to just transition.Design/methodology/approachThe research the authors introduce used a multi-level field research approach to investigate multiple fashion supply chains in transition.FindingsThe authors uncovered that in the pursuit of lowering carbon emissions, fast-fashion giants work with industrial associations to create top-down governance tools, leading to severe problems in supply chain data and paradoxical demands. These demands are cascaded onto the workers in these supply chains. The goals and tools dictated by the fashion giants exclude workers, whilst the physiological and psychological effects on the workers are routinely ignored. These issues impede a just transition to a low-carbon fashion industry.Originality/valueThe authors introduce concepts largely missing from OSCM literature and ensure representation of the most marginalised group, supply chain workers, in a novel setting in a call for research in this emerging area.

Saïah, Félicia; Vega, Diego; Kovács, Gyöngyi

2023 International Journal of Operations & Production Management

doi: 10.1108/ijopm-01-2023-0054

This study focuses to develop a common humanitarian supply chain process model (HSCPM) that enables effective enterprise resource planning (ERP) systems for NGOs, and the study also investigates the role of modularity as a dynamic capability that supports creating such model.Design/methodology/approachA multifocus group study was performed as part of a larger project, the Frontline Humanitarian Logistics Initiative, aiming to establish a common data model that would serve as the backbone of humanitarian ERP systems. Fourteen international humanitarian organizations (IHOs) participated in the process, reaching a consensus on the structure of the process model.FindingsAn HSCPM was proposed based on the consensus reached across IHOs. Four degrees of customization differentiating between “generic,” “tailored,” “specific,” and “unique” processes are presented and discussed.Research limitations/implicationsThe findings show modularity applied to process as a mean to create dynamic efficiencies and position the modular process model within the dynamic capabilities framework, supporting supply chain responsiveness and expanding the literature on supply chain management (SCM), dynamic capabilities, and humanitarian logistics.Practical implicationsThis research proposes a consensus-based data model, facilitating the advancement of ERP systems in the humanitarian context and lays a foundation for interoperability among ERP systems across diverse IHOs.Originality/valueFirst attempt to elucidate the specific characteristics and unique processes defining an HSCPM, this study reached an unprecedented consensus for the humanitarian sector, setting the base toward an industry standard.

Caniato, Federico; Graham, Gary; Roehrich, Jens K.; Vereecke, Ann

2023 International Journal of Operations & Production Management

doi: 10.1108/ijopm-03-2023-0163

International Journal of Operations and Production Management (IJOPM)'s Impact Pathway (IP) section has been launched in 2020 to host short contributions grounded in current managerial practices and/or policy development, challenging established operations and supply chain management (OSCM) knowledge and highlighting innovative and relevant research directions. This commentary reflects on the achievements of the section, delineates the key features of IP papers and stimulates further development.Design/methodology/approachThis commentary provides a brief overview of the IJOPM's IP section, taking stock of the contributions that have been published so far, analysing their topics, methodologies, insights and impact.FindingsThe 19 contributions published over the last three years have dealt with a variety of emerging topics, ranging from the COVID-19 response to additive manufacturing, leveraging on key evidence from managerial practice that challenges consolidated knowledge and theory, providing clear research directions as well as managerial and/or policy guidelines.Originality/valueThe commentary reflects on the importance of phenomenon-driven research that seeks to bridge the gap between theory and practice, thus increasing the impact and reach of OSCM research. This is a call for contributions from scholars, business leaders and policymakers to develop further impact-oriented research.

Srai, Jagjit Singh; Graham, Gary; Van Hoek, Remko; Joglekar, Nitin; Lorentz, Harri

2023 International Journal of Operations & Production Management

doi: 10.1108/ijopm-08-2022-0529

The new geopolitical context being created by the Ukraine–Russia war highlights the need for structured approaches to planning and implementing unhooking strategies and developing associated supply chain reconfigurations.Design/methodology/approachThe authors have interviewed six supply chain executives to begin the investigation of the key supply chain risks and disruptions caused by the Ukraine–Russia war.FindingsInitial corporate responses to the Ukraine–Russia conflict were significant, perhaps unprecedented. However, as institutional, corporate and consumer sentiment influence reconfiguration responses, the authors have identified three supply chain pathways that underpin unhooking actions.Research limitations/implicationsThe authors selected respondents from each different type of supply chain interaction with the conflict zone (inbound, outbound and within), covering both components/intermediate products and finished goods. Therefore the sample size was small and designed to fit in with the spirit of the pathway initiative.Practical implicationsThe authors reinforce the key role of procurement and supply chain management in not just supply but also in downstream markets that can accelerate decoupling and mitigate the associated supply chain disruptions.Social implicationsThe authors observe that supply chains are increasingly being weaponized, as external institutional and consumer influences necessitate companies to unhook from conflict zones, countries, or regimes. They are becoming increasingly intertwined with foreign policy.Originality/valueThe novelty of the contribution to the associated discourse is the perspective that after decades of increasing globalization and geographic dispersion of supply chains, the unhooking effort is not limited to a firm and its internal operations but involves multiple stakeholders. For instance, the full extent of the complex linkages of supply chains, networks and relationships that touch conflict zone geographies must be considered, particularly those that are incompatible with the firm's values and aims, including those of their stakeholders.

de Menezes, Lilian M.; Escrig-Tena, Ana B.

2023 International Journal of Operations & Production Management

doi: 10.1108/ijopm-12-2022-0763

This paper aims to improve our understanding of performance measurement systems in the health and care sector, by focussing on employee reactions to core performance measurement practices. Targets and monitoring are hypothesised to be associated with employee perceptions of job control, supportive management and job demands, which in turn, are expected to be linked to employee-wellbeing and organisational commitment.Design/methodology/approachMatched employee workplace data are extracted from a nationally representative and publicly available survey. Structural equation models are estimated.FindingsPerformance measurement systems are neither perceived as resources nor additional demands. Setting many targets and a focus on productivity can lead to negative employee outcomes, since these positively correlate with perceptions of job demands, which negatively correlate with employee wellbeing. However, monitoring financial performance and monitoring employee performance may be helpful to managers, as these are positively associated with employee perceptions of job control and supportive management, which positively correlate with job satisfaction and organisational commitment and, negatively, with anxiety. Overall, common criticisms of performance measurement systems in healthcare are questioned.Originality/valueGiven the lack of consensus on how performance measurement systems can influence employee experiences and outcomes, this study combines theories that argue for performance measurement systems in managing operations with models developed by psychologists to describe how perceptions of the work conditions can affect employee attitude and wellbeing. A conceptual model is therefore developed and tested, and potential direct and indirect effects of performance measurement systems in the health sector are inferred.