Innovative knowledge sharing,supply chain integration and firm performance of Australian manufacturing firms

A number of reports show that innovation in Australian manufacturing firms is declining. We propose that better knowledge sharing practices can assist these firms to become more innovative. In this paper, we examine this proposition by empirically testing the relationship between knowledge sharing practices within and between trading partners as a framework for integration, and testing for the effect of these practices on firm performance. Data were collected from 418 organisations in the manufacturing industry in Australia to assess the degree to which innovative knowledge sharing practices provide a competitive advantage to Australian firms. Structural equation modelling approach to data analysis was used. It was found that the three innovative knowledge sharing constructs (internal knowledge integration, knowledge integration with customers and knowledge integration with suppliers) were strongly inter-related, providing a case for knowledge-based integration of firms with their trading partners. Further, these three exogenous constructs collectively explained about a third of the variance in the endogenous construct (firm performance). The relationships identified provide support for the efficacy of knowledge-based collaboration as an innovation promoting higher firm performance levels. Managers of manufacturing firms in Australia specifically, and others more generally, can use this as a way to conceptualise how their firms can develop internal integration and collaborative relationships with their trading partners.     

Developing environmental and social performance: the role of suppliers’ sustainability and buyer–supplier trust

We explore how environmental and social performance of manufacturing firms can be improved as sustainable supply chain management (SSCM) develops and evolves within a firm from internal to external practices. Importantly, this study considers how key suppliers’ sustainability performance and buyer–supplier trust mediate and moderate such a development. A conceptual framework is developed which relies on resource-based theories and emerging empirical evidence. Then, partial least square methodology is applied on survey data from a sample of Italian manufacturing firms. Results show that manufacturing firms’ sustainability performance improves as SSCM develops; however, while internal practices have a direct impact on performance, the effect of external practices on a manufacturing firm’s sustainability performance is fully mediated by key suppliers’ sustainability performance. Yet, buyer–supplier trust significantly influences the scope of such gains. Since evidence suggests that manufacturing firms are still struggling with how to leverage supply chain innovation potential for sustainable development, this study provides a timely and valuable contribution.     

Supply chain integration patterns and operational performance: a plant-level survey-based analysis

Though most scholars recognise that supply chain integration (SCI) can contribute to improving operational performance, previous studies on the SCI-performance link showed mixed results and several questions on this issue remain still open. In line with a configurational perspective, this study investigates whether plants adopting multiple integration practices (i.e. full SCI adopters) perform better than plants implementing only some selected SCI practices (i.e. partial adopters) and plants which do not implement any SCI practice (i.e. non-adopters). In addition, it analyses whether partial adopters show a superior performance compared to non-adopters. Analyses based on a sample of 317 manufacturing plants reveal that full adopters perform better than non-adopters, in terms of quality, delivery, flexibility and efficiency. Among partial adopters, a particular SCI pattern, characterised by a high level of internal integration and supply chain planning, differs from non-adopters in terms of delivery, and shows results similar to full adopters in terms of quality and efficiency. More surprisingly, the other patterns of partial adopters do not significantly differ from non-adopters in any performance dimensions, and underperform full adopters in each performance. This suggests that in order to maximise SCI benefits companies should lever on multiple integration practices, and that in some cases focusing only on selected integration activities can be useless. A further interesting implication is that companies can cumulatively increase their operational performance towards a full exploitation of SCI benefits by following a certain sequence of SCI practices.     

The relationships among functional integration,mass customisation,and firm performance

Previous literature has extensively investigated the impact of supply chain integration on mass customisation and plant performance, but little research has been conducted to examine the impact of functional integration within the focal firm on mass customisation and plant performance. This article seeks to demonstrate this impact theoretically and empirically. Organisational information processing theory and the resource-based view of the firm are used to relate functional integration, mass customisation, and plant performance. Structural equation modelling is applied to analyse a conceptual model with survey data collected from 266 manufacturing plants. The results indicate that functional integration has a significant positive impact on mass customisation and operational performance. Mass customisation partially mediates functional integration's impact on operational performance. Results also indicate that mass customisation's impact on customer satisfaction is not direct. Rather, the relationship is fully mediated by operational performance. Managerial implications of these research findings are discussed.     

Examining the effects of green supply chain management practices and their mediations on performance improvements

Environmental pressures have caused green supply chain management (GSCM) to emerge as an important corporate environmental strategy for manufacturing enterprises. For manufacturers to fully realise the performance potentials of GSCM, they need to integrate internal GSCM practices emphasising functional coordination with external GSCM practices such as cooperation with suppliers and customers in the implementation. Using coordination theory, this article examines three models used to evaluate the mediation relationships between the external and internal practices of GSCM with respect to environmental, economic, and operational performance. We posit that the strategic stance of manufacturing enterprises in improving their overall performance and competitive position requires a joint coordination of internal and external GSCM practices. Survey data collected from 396 Chinese manufacturing enterprises are used to validate our arguments by testing the mediation effects of two categories of GSCM practices. Our empirical results show support for the mediation effects, which indicates the importance for manufacturers to coordinate between the internal and external aspects of implementing GSCM practices to reap the performance benefits. Coordinating internal and external GSCM practices to seek performance improvements is an important aspect of the manufacturing operations strategy. The dynamics of implementing GSCM practices and the performance contingencies are worthwhile topics to pursue in future research.     

A competitive progression perspective of JIT systems: evidence from early US implementations

This study investigates the holistic implementation of just-in-time (JIT) manufacturing. We contend that the most important elements of holistic JIT systems – focused factory, reduced setup times, group technology, total productive maintenance, multifunction employees, uniform workload, just-in-time purchasing, Kanban, total quality control and quality circles – should be implemented in a sequential manner for a firm to reap sustainable operational gains. The right sequence of implementation of JIT practices is derived using the theory of competitive progression and based on four JIT practice bundles – conformance quality related practices, delivery reliability related practices, volume flexibility related practices and low cost related practices. Data collected in a cross-sectional field study of US manufacturers are used to test the suggested implementation sequence of JIT practices and the impact of the JIT practice bundles on improvement in non-value added performance. The results indicate that implementations of JIT management practices should be in the order – first, conformance quality related practices; second, delivery reliability related practices; third, volume flexibility related practices and; finally low cost related practices. In addition, significant improvement in operational performance, as reflected in improvement of non-value added performance, is achieved via the cumulative capability building.     

Managing evolutionary paths in Sales and Operations Planning: key dimensions and sequences of implementation

Sales and Operations Planning (S&OP) is a key process that improves integration and communication between business functions and aligns the plans of a company into one integrated set of plans. This article focuses on the so-called S&OP ‘maturity models’, which describe the successive stages in the advancement of S&OP process according to a precise set of dimensions. These models are specifically thought to plan the transitions towards advanced stages, rather than to provide guidance on how to execute them. This paper aims to address this research gap by investigating how the dimensions evolve and interact during the execution of the transition between two subsequent stages. Three case studies of S&OP transitions with different starting and destination maturity stages have been compared. The findings demonstrate that the degree of seriality vs. parallelism among actions on different S&OP dimensions during the transition depends on the evolution stage of S&OP process. The study sheds light on the dynamics among the dimensions during the different transitions and warns managers not to underestimate the criticality of the people and organisation dimension, whose importance grows as the maturity level increases.     

Barriers to the adoption of green operational practices at Brazilian companies: effects on green and operational performance

The objective of this paper is to verify to what degree the internal and external barriers (I/EBs) to environmental management affect the adoption of green operational practices (GOPs) and to determine whether they influence the firms’ operational and green performance in a sample of Brazilian companies. A conceptual framework with 8 hypotheses is proposed and tested at 75 companies using Partial Least Squares-Structural Equation Modeling (PLS-SEM) with WarpPLS 4.0. The main results show that (a) the proposed framework obtained an adequate statistical adjustment, (b) the internal barriers (IBs) are more significant than the EBs when adopting GOPs, (c) GOPs relate directly to the firms’ green and operational performance (OP), (d) the IBs also indirectly influence the firms’ green and OP and (e) the firm size does not significantly influence its green and OP. This work contributes to the literature by showing that companies which are looking for green competitive advantages should try to reduce their IBs. Also, policy-makers should pay attention not only to legislation that promotes ecological modernisation, but also to create a strong set of initiatives to overcome IBs, regardless of the size of the firms.     

Simulation and performance evaluation of partially and fully integrated sales and operations planning

This article presents rolling horizon simulation models and performance analysis of partially and fully integrated sales and operations planning (S&OP) against traditional decoupled planning in a multi-site make-to-order (MTO) based manufacturing supply chain. Three simulation models are developed illustrating, respectively, the fully integrated S&OP model, which integrates cross-functional planning of sales, production, distribution, and procurement centrally; the partially integrated S&OP model, in which the joint sales and production planning is performed centrally while distribution and procurement are planned separately at each site; and the decoupled planning model, in which sales planning is carried out centrally while production, distribution, and procurement are planned separately and locally. A solution procedure is provided for each model so that a more realistic planning process can be simulated. Performances of rolling horizon simulation models are evaluated against those of the fixed horizon deterministic models. The results demonstrate that while deterministic models are important for theoretical studies, they are insufficient for decision support and performance evaluations in a real business environment. A rolling horizon simulation model is required to provide more realistic solutions. The effects of demand uncertainties and forecast inaccuracies are incorporated in the evaluation. The study is carried out based on a real industrial case of a Canadian-based oriented strand board (OSB) manufacturing company.     

Lean and green combine to impact environmental and operational performance

We assess the antecedent link between lean and green practices and assess the combined impact of lean and green practices on both environmental and operational performance. A lean and green practices performance model is proposed that incorporates lean and green practices as antecedents to both environmental and operational performance. Structural equation modelling was used to analyse data collected from a sample of 182 manufacturing managers in U.S. plants. We found that lean manufacturing practices are positively associated with environmental performance and operational performance and that green supply chain management practices are positively associated with environmental performance and environmental performance is positively associated with operational performance. No support was found for the idea that green supply chain management practices are positively associated with operational performance. While lean practices were found to directly affect environmental performance, the indirect effect of lean practices on environmental performance through green practices is stronger, indicating complementarity.     

Relationship between downstream integration,performance measurement systems and supply network efficiency

Downstream integration is a key managerial area to improve performance in supply networks. Though most studies agree that downstream integration positively influences performances, the literature also reports cases of failures in achieving significant improvements. This evidence suggests that some factors may act as moderators on the downstream integration-performance relationship. This paper analyses the impact of downstream integration on supply network efficiency and the moderating effect on this relationship of supply network performance measurement systems. Data from a sample of 200 manufacturing plants settled in several countries around the world demonstrate that this moderating effect exists. Therefore, in order to strengthen the impact of downstream integration on supply network efficiency, managers should combine interventions on downstream integration and supply network performance measurement systems, rather than investing and focusing on downstream integration only.     

Unpacking IT use and integration for mass customisation: a service-dominant logic view

Significant changes in customer demands for individualised offerings are causing firms to move away from mass production strategies toward customisation. Many firms struggle in this migration because the requirements for mass customisation (MC) differ greatly from those needed for mass production. As firms strive to optimise their interactions with customers and suppliers to produce highly customised offerings at near mass production prices, IT use along with customer and supply integration are important organisational competencies. Research studies explore many facets of MC but, in regard to IT use for customer and supplier integration, most focus on specific activities within the product design and development process. This study extends the IT-enabled organisational capabilities line of research, using data collected from 220 manufacturers, to explore IT use in a comprehensive sense for planning, infrastructural, and operational activities in various business processes intended to achieve MC. These findings suggest that comprehensive IT use can enhance a firm's integration efforts with customers and suppliers. These factors, in turn, drive operational performance and MC, which lead to firm performance. Grounded in service-dominant logic (SDL) theory, these findings provide theoretical and empirical support to explain why customer integration may be a driving force in MC.     

Product and employee development in advanced manufacturing: Implementation and impact

As competitive intensity increases and the need for rapid, responsive and efficient production rises, manufacturers need to develop effective strategies that lever all a firm's resources into a competitive weapon. One challenge managers face in today's dynamic global economy is to choose appropriate manufacturing practices and then to integrate them into a cohesive value-added strategy that will yield enhanced competitive performance. The sheer number and range of manufacturing 'strategies' that have emerged over the past 20 years exacerbate the challenge. The goal of this study is therefore to look at four highly publicized manufacturing strategies and then examine their interrelationships and impact on firm performance: (1) integrated product development, (2) employee development, (3) just-in-time manufacturing and (4) manufacturing automation. The responses of 158 managers from randomly selected US manufacturing firms were used to develop a covariance matrix to facilitate the use of a structural equations model via LISREL. The analysis indicates that employee and product development strategies are important antecedents of just-in-time and automation strategies. All four advanced manufacturing practices have significant, positive impacts on organizational competitiveness.     

Exploratory study of the adoption of manufacturing technology innovations in the USA and the UK

Manufacturing technologies, appropriately implemented, provide competitive advantage to manufacturers. The use of manufacturing technologies across countries is difficult to compare. One such comparison has been provided in the literature with a study of US and Japanese practices in advanced manufacturing technology use using a common questionnaire. The present study compares the use of 17 different technologies in similar industries in the USA ( n = 1025) and UK ( n = 166) using a common questionnaire. Largely, there are remarkable similarities between the two countries. This may partly correlate with the heavy traffic in foreign direct investment between the two nations. Notable differences are (1) across-the-board, US manufacturers are ahead of the UK firms in computerized integration with units inside and outside manufacturing organizations; (2) US manufacturers show higher labour productivity, which is consistent with macro-economic data, and (3) more UK manufacturers report the use of soft technologies such as just-in-time, total quality manufacturing and manufacturing cells. Hypotheses for future investigation are proposed.     

R&D,Value Chain Location and Firm Performance in the Global Electronics Industry

In today's global electronics industry, innovation is carried out by various value chain participants, including brand-name manufacturers (sometimes called lead firms), contract manufacturers and component suppliers, but there is little understanding of who benefits most from innovation in such networks. This research examines empirically the relationship of R&D spending and location in the value chain (lead vs. non-lead firms) to firm performance in the global electronics industry by using the Electronic Business 300 data set for 2000–2005. Our results show that firms spending more on R&D have higher gross profits, but do not have higher return on equity (ROE) and return on assets (ROA). There is a strong positive relationship between lead firms and performance as measured by gross profit, ROE and ROA, but the relationship between lead firms and gross profit becomes insignificant when the interaction term of R&D and lead firm is included in the analysis. Finally, lead firm status has a positive interaction effect on the relationship between R&D and gross profit. These findings suggest that the relationship of R&D to performance is mixed, but that lead firms can capture higher value (gross profit) from R&D than contract manufacturers and component suppliers.     

Adoption of green supply chain management practices and their impact on performance: an exploratory study of Indian manufacturing firms

Research on green supply chain management (GSCM) or sustainable supply chain management (SSCM) has attracted increased attention in recent years. Although GSCM/SSCM has been studied for developed and developing countries, there has been little information about the adoption of GSCM/SSCM practices in India. This article presents one of the earliest surveys on GSCM practices in Indian manufacturing firms. The items for the survey were developed based on the extant literature and feedback from corporates. Some of the major findings of the survey are as follows. We found that the state of adoption of GSCM practices by Indian firms was still in its infancy, the awareness of environmental sustainability was quite low among consumers, and the regulatory framework was also lacking in terms of promoting environmental sustainability. Results of data analysis showed that supplier collaboration for environmental sustainability had a positive impact on environmentally sustainable product design and logistics, which in turn was positively related to competitiveness and economic performance of the firm. We compared the results with the observations made by other researchers for developed and developing countries and provided managerial implications for the government and manufacturers as to what steps need to be taken to generate awareness towards environmental sustainability and facilitate the adoption of GSCM practices among Indian firms to a greater extent. We conclude the paper by indicating directions for future research on GSCM/SSCM.     

The impact of supply chain analytics on operational performance: a resource-based view

This study seeks to better understand the role of supply chain analytics (SCA) on supply chain planning satisfaction and operational performance. We define the architecture of SCA as the integration of three sets of resources, data management resources (DMR), IT-enabled planning resources and performance management resources (PMR), from the perspective of a resource-based view. Based on the data collected from 537 manufacturing plants, we test hypotheses exploring the relationships among these resources, supply chain planning satisfaction, and operational performance. Our analysis supports that DMR should be considered a key building block of manufacturers’ business analytics initiatives for supply chains. The value of data is transmitted to outcome values through increasing supply chain planning and performance capabilities. Additionally, the deployment of advanced IT-enabled planning resources occurs after acquisition of DMR. Manufacturers with sophisticated planning technologies are likely to take advantage of data-driven processes and quality control practices. DMR are found to be a stronger predictor of PMR than IT planning resources. All three sets of resources are related to supply chain planning satisfaction and operational performance. The paper concludes by reviewing research limitations and suggesting further SCA research issues.     

Advanced manufacturing technology use: Exploring the effect of the nationality variable

A few studies (Jaikumar 1986) have left an impression among researchers that Japanese manufacturers use more advanced manufacturing technologies (AMTs) then their US counterparts. Presuming this were to be true, we hypothesized that nationality of the firm is an important factor in AMT use. To test the effect of the nationality variable on AMT use we compared the use of 18 AMTs in the US and Japan in an exploratory study using data from 160 US firms and 125 Japanese firms.There is clear evidence that the nationality of the firm is a factor in AMT use; that is AMT use is significantly different in the two countries. One explanation for the differences in AMT use may lie in the respective strategic orientations of the manufacturers in the two countries. A major finding in this study is that, while US manufacturers use more scheduling and control technologies, their Japanese counterparts use more factory floor technologies. Several hypothesis are offered as propositions for future research.     

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。     

Manufacturing perspective of enterprise application integration: the state of the art review

Manufacturing enterprise today has become a matter of effective and efficient application of information technology and knowledge-based engineering. Several new manufacturing paradigms such as virtual enterprise (or extended enterprise) and mass customization have resulted in a highly distributed and autonomous manufacturing system. On the one hand, this will increase the competitiveness of a firm in terms of quickly meeting dynamic changes in the market; on the other hand, this will also increase the difficulty of integrating different information and knowledge systems residing in each member firm. This integration is also called enterprise application integration (EAI) (here the term application means information systems or software systems for supporting manufacturing or service activities). The methodology for EAI has been studied for at least a decade; but no satisfactory solution has been found from a practical viewpoint. EAI is becoming even more difficult due to the boom in various enterprise information and knowledge systems (and also to ever increasing competition in the technical software market). The study presented in this paper conducted a critical analysis of existing solutions to EAI. We consider EAI as having two generic issues: semantic integration and syntactic integration. The main problem of semantic integration reduces to the general problem of enterprise or business modelling. The main problem of syntactic integration reduces to the general problem of software architecture of enterprise applications which enables interoperability between any two EAs. While the first issue is studied in the manufacturing field, the second issue is studied in the computing engineering field. In this paper, both issues are put together under the context of EAI and studied. The result of the study, together with our experience with one Canadian manufacturing firm, has led to the identification of several issues to be addressed in the future. We also outline possible ways to approach these issues.