Automation fears: Drivers and solutions

New technologies offer employers the ability to replace tasks done by human labour with those done by machines. There are challenges for both employers and employees, as employers look for strategies for the implementation of automation technologies and employees may have concerns about their employment being threatened by automation technologies. In this research, we analyse data of over 500 Bulgarians to learn about how they perceive the automation of their jobs. The analysis finds that there are segments of the population defined by demographics and attitudes that are more fearful of the automation of their jobs than others. Additionally, we see that attitudes towards the dehumanizing effects of automation, peer-pressure, job automatability, and a person's self-perception of professionalism are the main drivers of the fear of automation. Finally, the paper evaluates respondents' attitudes towards various individual, corporate and social solutions to automation fears.     

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.     

The synergistic effect of environmental sustainability and corporate reputation on market value added (MVA) in manufacturing firms

This study is an attempt to explore the predictive effect, in terms of operational capability, of a large manufacturing firm’s environmental greening efforts carried out in the interest of sustainability, and of the firm’s reputation for social responsibility. Through both a traditional and a new, innovative approach, this study investigates the potential synergistic effect of environmental sustainability and the improvement of corporate reputation on a firm’s market performance in terms of shareholders’ equity value (market value added, or MVA) when taken together with the firm’s other key differential business factors. The findings of this study provide notable implications that establish the integrative paradigm for the influence of environmental greening sustainability on firm performance through the use of an innovative methodological approach regardless of a priori theoretical assumptions. Through this, the impact of environmental sustainability and corporate reputation, as well as their synergistic effect, on firm performance push forward a new foundation in business practice. The major findings and new methodological approach (Back-Propagation Neural Networks; BPNN) in this study will open a broad new spectrum of opportunities for further research on these topical issues.     

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.     

The relationship between corporate social responsibility and corporate performance: evidence from the US semiconductor industry

This study adopts a two-stage approach to explore the relationship between corporate social responsibility (CSR) and semiconductor companies’ performance during 2004–2008. In the first stage, dynamic data envelopment analysis is adopted to explore whether CSR affects US semiconductor firms’ performance, and the difference in performance between CSR firms and non-CSR firms is analysed; in the second stage, panel data regression is used to determine which quantitative indicators of CSR significantly affect the performance of US semiconductor firms. The empirical results show that social responsibility investment by US semiconductor firms has positive effects on their performance. This study thus suggests that the US semiconductor companies should pay more attention to the CSR quantitative indicators, including human rights, employee relationships, and environment issues in order to enhance their corporate efficiency.     

Organizational development and time-based flexibility: An empirical analysis of AMT adoptions

It has been consistently reported that many firms that have adopted advanced manufacturing technology (AMT) are failing to exploit the true flexibility potential of these systems. Since a firm's ability to improve flexibility is thought to be reliant on the flexibility of its people, it is often suggested that inadequate emphasis on people-centred implementation activities such as worker development are major contributors to many of these failures. The purpose of this study is to determine if differences in the level of effort exerted on several organizational development activities have any impact on a firm's time-based flexibility ability to respond quickly to changes in customer needs. Our analysis indicates that firms which expend higher levels of effort on worker development and functional integration strategies will achieve higher levels of time-based flexibility.     

Linking management control system with product development and process decisions to cope with environment complexity

In this study, we report the results of a large-scale survey study on business strategy and innovations conducted in China in November 2002. We focus on the impact of environmental complexity on the choice of management control systems and the effects of management control systems on product development and process decisions. Our findings provide some valuable insights to strategic change. When the pressure for change comes from the external environment, the strategic control approach is usually chosen to cope with environmental complexity. Strategic control focuses on the process of benchmarking a firm's strategic and operational decisions with that of their competitor's. Additionally, strategic control emphasises R&D and new product development, and aligns manufacturing strategy with corporate objectives. This approach has a long-term impact on a firm's position in the market place. When the pressure for change comes from the inside of an organisation and the company is more interested in maintaining its current market position, financial control approach is usually chosen to cope with environment complexity. Financial control approach focuses on incremental improvement in the manufacturing process and short-term financial performance. This approach provides risk-averse benefits to the company.     

The role of stakeholder pressure and managerial values in the implementation of environmental logistics practices

Many of the management practices that contribute to improving a firm's environmental performance are developed in the area of logistics management. The aim of this work is to contribute to identifying the factors determining the implementation of these practices by studying two variables: the environmental pressure of the stakeholders as perceived by the firm and the values and beliefs of its managers. The analysis of data provided by 186 industrial firms reveals that two dimensions of pressure can be distinguished, governmental and non-governmental, and that only the latter is able to explain the implementation of environmental practices in logistics. The empirical results also confirm the effect of management's values and reveal that part of this effect is channelled through the influence of these values in the perception of environmental pressure.     

Interactions between organizational culture,capability, and performance in the technological aspect of society: Empirical research into the Japanese service industry

It has been designated that humans have lost the balance between nature and society, and firms are expected to proactively contribute to a circular economy that minimizes harm to the world. To respond to these issues, this paper investigates the way of balancing environmental protection with corporate profits based on the Porter hypothesis, which is a well-known view on management practice. The hypothesis has been tested in many recent empirical studies, being supported until now; however, studies hardly used the organization theory approach effectively and they are restricted as the technological aspect of society was not treated. Therefore, we incorporate the co-evolutionary dual couplings model and clarify the interaction between the organizational and societal levels. Regarding the former, this study examines the interactions among four variables: environmental protection culture (containing technology), organizational capability, environmental performance, and economic performance, by multivariate analysis with the data of 498 Japanese firms. Regarding the latter, the study proposes a technological shift by employing the concept of the planned obsolescence-driven circular economy.     

Configuring Capabilities for Integrated Solutions: Evidence from the IT Sector

This paper investigates the way that firms' environmental context and organizational structure influence their strategic choices and lead to different capabilities configurations. Drawing on contingency theory and the resource‐based view, we explore integrated solutions—an emerging business model in which firms bundle products and services—in the IT sector, which is a particularly appropriate context due to its novelty, high‐technology characteristics and implications for capabilities development. This study contributes to research and practice by identifying how organizational and environmental/market factors co‐evolve with firms' strategy and how firms' distinct strategic decisions lead to differences in capabilities configurations.     

Technological Diversification Through Corporate Venture Capital Investments: Creating Various Options to Strengthen Dynamic Capabilities

Corporate venture capital (CVC) investment in technology-intensive entrepreneurial ventures has attracted increasing attention from established firms which recognize it as a useful learning investment strategy to create diversified technological options for future change. However, there is a lack of empirical research which examines the relationship between CVC investment and the corporate investors' technological diversification. In this study, we investigate the effects of CVC investments on corporate investors' technological diversity by using 20 years of panel data from corporate investors in five high-tech industries. As a result, we find that the total amount of CVC investments and the industrial diversity of portfolio companies exhibit curvilinear (inverted U-shape) relationships with the corporate investors' technological diversity. Moreover, the empirical results show that the absorptive capacity of corporate investors positively moderates the effects of CVC investments on the technological diversity.     

Dissertation Review

Abstract:

This research article provides valuable insights for practicing engineering managers on improving a firm's performance by applying a knowledge management (KM) based approach to quality management (QM). Traditional quality management systems do not provide sufficient knowledge management and knowledge creation opportunities for manufacturing firms to stay competitive in today's fast paced, unpredictable, complex, and rapidly changing global business environment. The world's body of knowledge does not include a quality management strategy where KM is integrated in QM, and where the effectiveness of such a KM/QM strategy is determined through quantitative empirical research over a defined time frame, thus omitting important performance improvement opportunities for manufacturing firms. The objective in addressing this research topic is to present a KM/QM strategy and to demonstrate its effectiveness. Engineering management areas, such as knowledge management and quality management, are leveraged throughout this research. Systems engineering aspects, such as operational efficiency improvement and system performance, are leveraged by integrating knowledge management and quality management to form an enhanced quality management system. The research demonstrates that a company with a KM/QM strategy is more effective than a company which does not have a KM/QM strategy, that the implementation of a KM/QM strategy contributes to product quality improvements over KM/QM strategy application time, and presents a framework that can be applied by practicing engineering managers.     

Understanding the drivers and implications of remote work from the local perspective: An exploratory study into the dis/reembedding dynamics

Transformations in the institutional environment and advances in technological infrastructures have led to a rise in remote work with implications for local environments. While there is significant literature on the social and spatial effects of telecommuting, the growth of remote work warrants a holistic analysis of its specific implications for local economic and community life. Drawing on interviews with representatives of 22 firms in one state, this exploratory study examines how locational factors drive firms' remote work utilization. Together with an analysis of interviews with 12 remote employees, it also examines how remote work arrangements are modifying firms' and employees’ connections to the local environment. The firm interviews indicate that remote work is increasingly utilized as a strategy to overcome regional talent acquisition challenges. The analysis reveals that remote work utilization can rework or attenuate the local economic and social linkages of remote-utilizing firms and remote employees. These findings suggest that the dynamics of remote work in local environments entail processes of disembedding and reeembedding, moderated by organizational and contextual factors. By situating questions and findings in relation to local contexts, this study details how firm dynamics and work-life patterns associated with remote work introduce opportunities and challenges for community and economic development efforts.     

New Technologies and Firm Organization: The Case of Electronic Traceability Systems in French Agribusiness

This paper considers the relationship between the adoption of electronic traceability systems (ETSs) and the organization of firms. More precisely, it analyzes the respective roles of a firm's organizational structure, and organizational changes, in the process of ETS adoption in agribusiness. We use data from the French “Organizational Changes and Computerization” survey from 2006. We test a probit model to demonstrate the organizational structure and organizational changes underlying the firm's ETS adoption choice. Results show that ETS adoption is strongly favored by organizations with heavy hierarchical structures, standardized managerial practices and contractual mechanisms with external partners. This adoption process seems to coevolve with the organization: firms that implemented an ETS during the observed period (2003–2006) have experienced the most important organizational changes in terms of managerial practices, information systems and contractual relations, as well as the strengthening of the intermediate levels in the hierarchy.     

Agglomeration Economies,Firms' Spatial Organization and Innovation Performance: Some Evidence from the French Industry

There is a consensus in economic geography concerning the positive influence of agglomeration economies on innovation. Usually this is captured through the type of area in which a firm's head office (HO) of the firm is located. But the location of the firm's other units could also have an impact on innovation. This article proposes to construct different spatial profiles of firms, based on the location of their HOs and other units in three distinct types of areas, defined according to their degree of agglomeration. The influence of these firms' spatial profiles on their propensity to innovate and innovation intensity is estimated, controlling for other determinants related to structural characteristics, the firms' relations with outsiders and with their competitive environment. This study uses a sample representative of the French manufacturing firms for the year 2006. The econometric results show various effects of multi-location on firms' innovation and highlight the importance of the units in the overall technological dynamic of firms.     

Learn to survive crises: The role of firm resilience,innovation capabilities and environmental dynamism

Exogenous crises, while disruptive, may also present learning opportunities that could affect a firm's viability and performance. In this study, we examine how exogenous crises can constitute learning opportunities and assess their impact on firm survival. In particular, we investigate the role of learning in response to exogenous crises and how firm resilience, innovation capabilities, and environmental dynamism influence this relationship. Drawing from crisis management and organisational learning literature, we propose that these factors can bolster the connection between learning from crises and firm survival. To test our hypotheses, we conduct a nuanced analysis using both regression analysis and Fuzzy Set Qualitative Comparative Analysis (fsQCA) on data from 249 Italian manufacturing Small and Medium-sized Enterprises (SMEs). This approach allows us to simultaneously examine the impact of firm resilience, innovation capabilities, and environmental dynamism on the relationship between learning from crises and firm survival. Our findings offer theoretical and practical insights into the role of learning from crises in a firm's survival. They also highlight the importance of embracing learning opportunities in crisis situations and suggest that how firms deal with crises could be an opportunity to fine-tune their internal processes and thrive in the long run.     

Licensing early-versus late-stage technologies: The licensee perspective

Inward licensing of technology is an important route for firms to secure technological advances. With varying uncertainties and licensing opportunities along the innovation process, firms face challenges in deciding whether to license technologies during their early stages of development when they present opportunities as well as high uncertainty, or to wait until they have developed further towards commercialization, when they have lower technological uncertainty and are left with few opportunities. Building on studies of interfirm networks, we investigate how a firm's network structure and reputation affect such decisions. Our empirical analysis of licensing agreements in the biotechnology and pharmaceutical industries shows that firms tend to initiate licensing agreements during the early stage of technology development when their network structure is rich in structural holes. This tendency is higher when they are of good reputation. This research contributes to our understanding of how licensing agreements occur along the innovation process.     

Analysing the roles of CEO's financial literacy and financial constraints on Spanish SMEs technological innovation

Drawing on human capital and upper echelons theories, this study analyses how CEO's financial literacy influences a firm's technological innovation and investigates the mediating role of alleviating financial constraints of Small and Medium-sized Enterprises (SMEs) in the former relationship. We develop and test hypotheses applying a Structural Equation Model to a sample of 310 Spanish SMEs. The results show that CEO's financial literacy exerts both a direct and an indirect impact, through alleviating financial constraints, on a firm's technological innovation.     

An Annotated Bibliography on Concurrent-Engineering-Related Topics

Abstract

This article presents an enterprise method for moving a firm's product content to the Internet. Web-enabled, online content provides a competitive advantage for attracting, selling, and servicing clients globally. Two case studies of large international firms that used the content method are summarized. Findings show that the implementation method explained in this article provided a basic structure and process for meeting client goals. However, technology objectives tended to continually overwhelm enterprise and business strategies. The subordination of enterprise strategy resulted in dysfunctional organizational conflict and unnecessary project delays. Also, unanticipated, disruptive consequences of the changes resulted in confused organizational roles and work practices, which were not adequately addressed. This study recommends: (1) Enterprise and information technology (IT) strategy should be jointly planned before the content change process begins. Project sponsors representing top-down and bottom-up organizational levels should be assigned to coordinate IT and business goals throughout the project life cycle. The primary role of the project sponsors would be to anticipate and solve team and individual work-related needs during the project. (2) Change management interventions should also be incorporated into the enterprise method to commit, involve, and train those affected by the change. These recommendations would strengthen the effectiveness of the enterprise method observed and gain satisfaction of stakeholders involved in the change process.     

Assessing intermediate infrastructural manufacturing decisions that affect a firm's market performance

The purpose of this study is to develop a strategic operations management model that links intermediate infrastructural operations decisions and market performance given process choice as a structural constraint for manufacturing firms. The results underscore the effects of manufacturing control and staff skill and knowledge development on a firm's market performance. Several conclusions are drawn. First, manufacturing control, and staff skill and knowledge development has played significant roles in determining market performance. Second, either alone or in tandem with other independent variables, technology application dose not appear to be the most critical factor to affect a firm's market performance in today's Chinese business environment. Third, process type may not have a direct impact on market performance.