What Really Drives the Adoption of Modular Organizational Forms? An Institutional Perspective from Italian Industry-Level Data

While the rise of modular organizational forms is a global phenomenon, explicit causal models are currently available only for the US case. To date, no study has been conducted outside the USA about what drives firms to use modular organizational forms, and why would firms in some industries generally rely on more modular organizational forms than firms in other industries. Building on Schilling and Steensma's work of 2001, we apply general systems modularity theory to the Italian case and explain why in some industries there is a greater use of modular organizational forms using data from 68 manufacturing industries. The results of our regression analysis diverge significantly from the US case showing that, in the Italian case, organizational modularity is driven by labor intensity, industry specificities and nation-specific factors.     

Model validation of simple-graph representations of metabolism

The large-scale properties of chemical reaction systems, such as metabolism, can be studied with graph-based methods. To do this, one needs to reduce the information, lists of chemical reactions, available in databases. Even for the simplest type of graph representation, this reduction can be done in several ways. We investigate different simple network representations by testing how well they encode information about one biologically important network structure—network modularity (the propensity for edges to be clustered into dense groups that are sparsely connected between each other). To achieve this goal, we design a model of reaction systems where network modularity can be controlled and measure how well the reduction to simple graphs captures the modular structure of the model reaction system. We find that the network types that best capture the modular structure of the reaction system are substrate–product networks (where substrates are linked to products of a reaction) and substance networks (with edges between all substances participating in a reaction). Furthermore, we argue that the proposed model for reaction systems with tunable clustering is a general framework for studies of how reaction systems are affected by modularity. To this end, we investigate statistical properties of the model and find, among other things, that it recreates correlations between degree and mass of the molecules.     

How big data and analytics reshape the wearable device market – the context of e-health

The wearable device can be a key link between health care and big data and analytics (BDA). The benefits of BDA in health care have been widely acknowledged, but the uncertainty of the implementation of BDA has led some firms to hesitate in adopting this technology. In this research, we are keen to answer the key questions of whether the wearable device firms would adopt the BDA strategy, and how much effort they would put into it. We propose a competition model between the wearable device firms with and without BDA strategies, and consider the consumer’s preference towards BDA and network effects. Our model demonstrates that the investment on BDA directly affects the firm’s equilibrium price, market share and profit and at the same time, this strategy also affects the rival’s performances. When the firm with BDA strategy adopts different competition strategy: conservative or expansive, the outcomes of market are different. We also find that different market structures, fully covered and partially covered, have different impacts on the firms’ competition when the consumers have heterogeneous preference on BDA strategy.     

Modularity in KIBS: The Case of Third-Party Logistics Service Providers

This paper investigates service modularity and inter-organizational coupling in knowledge-intensive business services (KIBS). While KIBS literature traditionally emphasizes tight client–provider interactions with service customization, modularity literature emphasizes inter-organizational decoupling with service standardization. We disentangle this tension by exploring how KIBS firms utilize service modularity and shape their client–provider relationships in terms of information and knowledge sharing. Conducting two in-depth case studies of third-party logistics (TPLs), we show that TPLs extensively rely on service modularity with standard procedures as their constitutive element. We also demonstrate that service modularity and inter-organizational decoupling are aligned for knowledge sharing but not for information sharing, which remains high regardless of the service architecture. Overall, we suggest that modularity in KIBS differs in many aspects from modularity in products and that these differences significantly impact the organizational design consequences of service modularity. Theoretical and managerial implications are drawn.     

A fuzzy AHP evaluation model for buyer–supplier relationships with the consideration of benefits,opportunities, costs and risks

With increasingly fierce global competition, firms in various industries need to build a cooperative buyer–supplier relationship to survive and to acquire reasonable profit. Even though the literature on various types of collaboration between firms is abundant and the works on supplier selection models are numerous, the research that provides a mathematical model for the selection of the most appropriate form of buyer–supplier relationship is very limited. Existing buyer–supplier evaluation models usually only consider the benefits from the relationship, but not the opportunities, costs and risks that may need to be confronted. The main objective of this study is to propose an analytical approach to evaluate the forms of buyer–supplier relationship between a manufacturer and its supplier. A fuzzy analytic hierarchy process (AHP) model, which applies fuzzy set theory and the benefits, opportunities, costs and risks (BOCR) concept, is constructed to deal with uncertainty and to consider various aspects of alternatives. Multiple factors that affect the success of the relationship are analysed by incorporating experts’ opinions on their priority of importance, and a performance ranking of the buyer–supplier forms is obtained. A case study of selecting the most appropriate buyer–supplier form between a TFT-LCD manufacturer and its colour filter supplier is presented, and the proposed model is applied to facilitate the decision process. The proposed model is a general form that can be tailored and applied by firms that are making decisions on buyer–supplier relationship.     

客户导向与竞争导向影响运营绩效作用机理研究：基于模块化视角

为了揭示生产实践在市场导向影响运营绩效中的作用,基于模块化视角研究客户导向与竞争导向影响运营绩效作用机理。204份有效样本的实证研究结果表明,客户导向与竞争导向均显著正向影响产品模块化（β=0-21/0-20）,但是对流程模块化均无显著影响;产品模块化显著正向影响流程模块化（β=046）;产品模块化对运营绩效并无显著影响,但是流程模块化显著正向影响运营绩效（β=0-29）;控制变量企业规模和运营年限对运营绩效均未表现出显著作用。结果表明,模块化可以作为企业实施市场导向战略时的一种有效生产实践用于提高运营绩效,但是产品模块化和流程模块化的影响机制存在着差异。     

A hybrid model of component sharing and platform modularity for optimal product family design

Today's industry faces new challenges such as diverse customer demands, shorter product development cycles and cost pressure, which compel manufacturing firms to change their production paradigm from one-size-fits-all mass production toward mass customisation. Over the past decades, modular design has received great attention as a key enabler for mass customisation, and component sharing and platform modularity have been quite popular strategies for modular design. While modular design approaches and their strategies offer a number of advantages such as late product differentiation and changeability, there are unfortunately negative aspects, for example, sales loss due to reduced performance compared to integral design approaches, which have received little attention. Therefore, we propose a hybrid model of the two strategies in order to develop the most profitable product family. A detailed numerical analysis provides empirical support for the feasibility and effectiveness of the hybrid model.     

Innovation dimensions and firm performance synergy in the emerging market: A perspective from Dynamic Capability Theory & Signaling Theory

ContextIn this rapidly changing business environment, innovation is the key requirement to gain a sustained advantage over competitors. Innovation helps firms grow more quickly than others grow, survive in the harsh & highly competitive business environment, and eventually become a market leader.PurposeIndia is an emerging market, and many companies are entering here and making it highly competitive. The limited study is available to measure the effect of innovation in Indian Business. Thus, the study establishes a relationship between innovation and firm performance in the Indian setting.Design/methodology/approachThis is a perception-based study and used established subjective scales to measure innovation and firm performance. I validated the scale using the measurement model in AMOS. The survey used to collect around 250 cross-sectional data from middle & higher management executives of Indian firms. Structural equation modeling in AMOS was used to test the hypothesis.FindingsThe results showed that product and marketing innovation has a significant and positive impact on the dimensions of firm performance. In contrast, Process innovation showed an indirect effect mediated through marketing innovation. These outcomes will be beneficial for the industries for taking proactive measures.Originality/valueThe examination of mediation relationships between Marketing innovation and Product & Process innovation is limited. Novelty also lies in analyzing the impact of multiple innovation types on multiple dimensions of firm performance in Indian firms to verify dynamic capability and mediating effect of marketing innovation in Indian demography to validate the signaling theory perspective. Rigor in research methods like Scale and sampling method verification test, i.e., CMB. Heteroscedasticity and Endogeneity test for applicability of OLS and verifying exogenous variables.     

Varieties of Hierarchies and Markets: an Introduction

The paper presents both a theoretical and an empirical argumentthat the concept of hierarchy needs to be reconceptualized.In our theoretical discussion we develop a synthesis betweenCoase's and Williamson's conception of a market/hierarchy dichotomyand Weber's distinction between economic power and authority.We hold that the authoritative aspects of bierarchies, especiallywithin networks of firms, have independent effects on the formationof market economies. We empirically demonstrate the relevanceof this reconceptualization in an analysis of the economicsof South Korea and Taiwan. With these cases, we show that twodifferent types of authoritative interfirm networks, one verticallyand the other horizontally arranged, substantially shape theperformance of these economies.     

Big data analytics business value and firm performance: linking with environmental context

Previous studies, grounded on the resource based view, have already explored the relationship between the business value that Big Data Analytics (BDA) can bring to firm performance. However, the role played by the environmental characteristics in which companies operate has not been investigated in the literature. We inform the theory, in that direction, via the integration of the contingency theory to the resource based view theory of the firm. This original and integrative model examines the moderating influence of environmental features on the relationship between BDA business value and firm performance. The combination of survey data and secondary financial data on a representative sample of medium and large companies makes possible the statistical validation of our research model. The results offer evidence that BDA business value leads to higher firm performance, namely financial performance, market performance and customer satisfaction. More original is the demonstration that this relationship is stronger in munificent environments, while the dynamism of the environment does not have any moderating effect on the performance of BDA solutions. It means that managers working for firms in markets with a growing demand are in the best position to profit from BDA.     

The effect of supply and demand uncertainties on the optimal production and sales plans for new products

When introducing a new product, firms face a hierarchy of decisions at the strategic and operational levels including capacity sizing, time to market or starting sales, initial inventory required by the product’s release time and production management in response to changes in the demand (hereafter referred to as production-sales policies). The goal of this paper was to show the importance of considering both supply and demand uncertainties in the determination of the production-sales policy which has been overlooked in the existing literature. More specifically, we test two main hypotheses: (1) ignoring supply and demand uncertainties may lead to potentially incorrect decisions; and, (2) the decision could be different if risk is used as the primary performance measure instead of the commonly used expected (mean) profit. We perform extensive experimentation with a Monte Carlo simulation model of the stochastic supply-restricted new product diffusion and use different statistical procedures, namely, the Welch’s t-test and a nonparametric double-bootstrap method to compare the average and percentiles of the profit for different policies, respectively. The results indicate that the correctness of the two hypotheses depends on the diffusion speed, consumers’ backlogging behaviour, production capacity, price and variable production and inventory costs. The findings also have important implications for managers regarding market entry time, parameter estimation, production strategy and the implementation of the proposed model.     

Product and process modularity: improving flexibility and reducing supplier failure risk

As the dependence on suppliers intensifies, companies can adopt product and process modularity to reduce the potential negative effects of supply disruptions. Indeed, enabling manufacturing postponement can provide firms with a prompt response; by reducing the complexity of the system and allowing for easier configuration of the production process, the negative impact of a supply disruption, such as supplier failure, can be absorbed. This study provides a framework that relates the adoption of postponement enablers (i.e. product modularity and process modularity) to the reduction of the negative impact of a supply disruption. We attempt to determine whether the direct effect can be explained by the impact of these practices on companies’ flexibility. Based on data collected from 54 Italian manufacturing companies, we show that the adoption of manufacturing postponement enablers directly reduces the negative impact of the occurrence of supplier failure. Furthermore, we show that this relationship can only be partially explained by an indirect path through companies’ flexibility.     

Asset Specificity and Organizational Arrangements: the Case of the New Telecommunications Services Market

This paper uses new institutional economics to support strategicanalysis in industries, where the production of goods and servicesrequires the pooling of the assets of several firms. The typeof assets owned by these firms has an impact on their bargainingpower; this consequently influences the firms‘ abilityto be involved in specific organizational arrangements. Withthe objective of conceiving optimal strategies for firms involvedin these agreements, our study seeks to bring to light the relationshipsbetween the nature of organizational arrangements, the roleof the firms in these arrangements and their competitive positionin the industry in which the cooperation is formed. This analysisuncovers three principal forms of organizational arrangements:core firm with a network of subcontractors, homogeneous allianceand complementary alliance. With the support of various statisticalmethods, this framework is applied to the telecommunicationsindustry.     

Technological Knowledge Intensity and Entry Mode Diversity

• This paper expands the entry mode literature by referring to multiple modes exerted simultaneously in different value chain activities within and across host markets, rather than to a single entry mode at the host market level. We apply competing theoretical perspectives—internalization theory and knowledge transfer efficiency considerations on the one hand, and organizational learning theory on the other—to argue that firms’ technological knowledge intensity affect their entry mode diversity across value chain activities, across host markets, and at the overall corporate level.
• Analyzing a unique dataset we show that high technological knowledge intensity is strongly associated with high entry mode diversity across value chain activities and at the corporate level, but only weakly associated with greater entry mode diversity across geographic host markets.

     

一种基于D-S证据理论的复杂产品模块划分评价方法

模块划分是复杂产品模块化设计的基础,划分的优劣直接关系到客户定制产品设计、制造和装配的效率。针对现有的研究在模块划分方案形成以后缺乏对模块优劣的合理评价,该文通过引入D-S证据理论,从装配复杂性、可制造性、模块性、稳定性、造型结果与体积紧凑性6个指标对模块创建方案的满意度进行不确定和不完全性的综合评判,提出了一种双层模块化创建方案评价方法。该方法符合人的思维判断过程,具有一定的灵活性、有效性和合理性。     

Knowledge context,learning and innovation: an integrating framework

Abstract

In this conceptual paper, we develop a framework which identifies those elements of firms’ knowledge context which are important for innovation, and the mechanisms through which that knowledge impacts on firms’ innovation performance. We make four main contributions to the existing literature. First, our characterisation of knowledge context provides the basis for a more specific identification of which elements of firms’ knowledge environment are important for innovation, discriminating between spatial, sectoral and network influences. Second, we reflect the role of innovation ambition in shaping firms’ knowledge search strategies. Third, we differentiate between firms’ interactive and non-interactive knowledge search activities and recognise that these may be complemented by unanticipated and serendipitous knowledge spillovers. Finally, we employ the notion of encoding capacity to reflect firms’ internal ability to assimilate and apply external knowledge, and clarify its distinctiveness from the more general concept of absorptive capacity. Our framework provides an integrating mechanism for existing empirical studies, and suggests a number of new research directions related to the determinants of innovation performance and the heterogeneity of innovation outcomes.     

The effects of product modularity on launch speed

Extant literature suggests that product modularity positively and directly impacts the timeliness and frequency of new products as well as manufacturing performance, particularly flexibility. Little is known about the nature of these relationships, however, since few empirical studies have been done. Important questions remain unanswered including whether the effect of modularity on launch speed is direct or indirect, and what role other constructs might play. This study explores these issues by examining the effects of product modularity on launch speed within a holistic framework that considers the roles of product platforms and manufacturing flexibility. Drawing upon dynamic capabilities theory in the resource-based view, the model depicts product modularity as antecedent to product platforms, product platforms as antecedent to manufacturing flexibility and manufacturing flexibility as antecedent to launch speed. The model is strongly supported by an analysis of 93 manufacturers. Results reveal a positive effect of product modularity on launch speed, but it is delivered through the mediating effects of product platforms and manufacturing flexibility. In contrast to earlier work, the findings show modularity alone is an insufficient condition for the timely and frequent introduction of new products. Rather, launch speed is engendered by a ‘gestalt’ of dynamic capabilities.     

Linking quality citizenship to process design: a quality management perspective

As organisations emphasise their role in society, there is a need to determine the effect of socially responsible practices on organisational processes and firm performance. Although the effect of corporate social responsibility on firm performance has been addressed from different perspectives, little is known about the influence of corporate social responsibility on organisational processes and internal operations of firms. The paper aims to make a link between corporate social responsibility, quality management practices and quality outcomes through emphasising quality citizenship as one of the practices associated with quality management. This paper provides a new perspective on the link between quality citizenship and product/process design within the quality management framework. The stakeholder theory of the firm is used to explain the formation and development of new management practices within a firm. Data were collected from managers in the petroleum industry to examine the role of quality citizenship on design and development of organisational processes. The results show that quality citizenship has a significant effect on employee involvement and an indirect effect on process design. Quality citizenship enables firms to obtain a much broader perspective on product/process design and facilitates design and development of products, services and processes that meet the needs of a broader set of customers – the stakeholders.