Development of fuzzy two-stage DEA model for competitive advantage based on RBV and strategic agility as a dynamic capability

2016 ◽  
Vol 11 (1) ◽  
pp. 288-308 ◽  
Author(s):  
Maryam Hemmati ◽  
Davood Feiz ◽  
Mohammad Reza Jalilvand ◽  
Iman Kholghi
Keyword(s):  
Competitive Advantage ◽  
Manufacturing Industry ◽  
Dynamic Capability ◽  
Data Envelopment Analysis Model ◽  
Manufacturing Companies ◽  
Firm Resources ◽  
Two Stage ◽  
Content Type ◽  
Strategic Agility ◽  
Constant Returns To Scale

Purpose – This paper aims to develop a framework for competitive advantage by systematic quantitative methodology based on resource-based view and dynamic capability theory. Strategic agility was used as a dynamic capability. Design/methodology/approach – Data were collected from a survey aimed at manufacturing companies from five manufacturing industry in Semnan, Iran. A total of 102 questionnaires were received from 13 companies using convenience sampling. Fuzzy two-stage data envelopment analysis model (DEA) was used to analyse the data collected. Findings – The results indicate that there is close internal relationship among firm resources, strategic agility and competitive advantage, and their inherent relationship makes constant returns to scale (CRS) scores closer to 1. In most of the companies, the second process which transforms strategic agility to competitive advantage is the main cause for unsatisfactory performance in gaining competitive advantage. Originality/value – The innovation of this paper is in its model and method. There is no research has been ever done on the relationship among firm resources, strategic agility and competitive advantage. Moreover, to obtain a competitive advantage structure, DEA technique was adopted which is a new approach in this area.

The role of innovation in building competitive advantages: an empirical investigation

2018 ◽  
Vol 21 (1) ◽  
pp. 44-69 ◽  
Author(s):  
Prodromos Chatzoglou ◽  
Dimitrios Chatzoudes
Keyword(s):  
Competitive Advantage ◽  
Conceptual Framework ◽  
Empirical Investigation ◽  
Primary Data ◽  
Empirical Literature ◽  
Competitive Advantages ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Impact ◽  
Structured Questionnaire

Purpose Nowadays, innovation appears as one of the main driving forces of organisational success. Despite the above fact, its impact on the propensity of an organisation to develop and sustain a competitive advantage has not yet received sufficient empirical investigation. The purpose of this paper is to enhance the existing empirical literature by focusing on the antecedents of innovation and its impact on competitive advantage. It proposes a newly developed conceptual framework that adopts a three-step approach, highlighting areas that have rarely been simultaneously examined before. Design/methodology/approach The examination of the proposed conceptual framework was performed with the use of a newly developed structured questionnaire that was distributed to a group of Greek manufacturing companies. The questionnaire has been successfully completed by chief executive officers (CEOs) from 189 different companies. CEOs were used as key respondents due to their knowledge and experience. The reliability and the validity of the questionnaire were thoroughly examined. Empirical data were analysed using the structural equation modelling technique. The study is empirical (based on primary data), explanatory (examines cause and effect relationships), deductive (tests research hypotheses) and quantitative (includes the analysis of quantitative data collected with the use of a structured questionnaire). Findings Results indicate that knowledge management, intellectual capital, organisational capabilities and organisational culture have significant direct and indirect effects on innovation, underlining the importance of their simultaneous enhancement. Finally, the positive effect of innovation on the creation of competitive advantages is empirically validated, bridging the gap in the relevant literature and offering avenues for additional future research. Originality/value The causal relationship between innovation and competitive advantage, despite its significant theoretical support, has not been empirically validated. The present paper aspires to bridge this gap, investigating the impact of innovation on the development of competitive advantages. Moreover, the present study adopts a multidimensional approach that has never been explored in the existing innovation literature, making the examination of the proposed conceptual framework an interesting research topic.

Differences in the impact of AMO bundles of line managers and frontline workers on the performance of manufacturing firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alberto Bayo-Moriones ◽  
Alejandro Bello-Pindado
Keyword(s):  
Manufacturing Industry ◽  
Manufacturing Firms ◽  
Manufacturing Companies ◽  
Linear Regression Models ◽  
Line Managers ◽  
Content Type ◽  
Frontline Workers ◽  
Hrm Practices ◽  
Manufacturing Performance ◽  
The Impact

PurposeThe purpose of this paper is to analyse the impact on manufacturing performance of human resource management (HRM) practices across two job levels within manufacturing firms in Argentina and Uruguay: that of line managers and frontline workers. HRM practices are categorised into three bundles defined by the AMO theoretical framework: ability, motivation and opportunity.Design/methodology/approachThe article uses data from a survey to 301 manufacturing plants in Uruguay and Argentina. Given the characteristics of the dependent variable, linear regression models have been estimated in order to test the hypotheses.FindingsThe results show that the ability and opportunity bundles for line managers are positively associated with manufacturing performance. However, only the motivation bundle affects manufacturing performance for frontline workers.Research limitations/implicationsThe main limitations are the use of cross-sectional data, the focus on two specific countries and the analysis of two employee categories that are not completely homogenous. The paper extends the contingency perspective in HRM by examining the relevance of job level as a contingent factor in the HRM-performance relationship in the manufacturing industry.Practical implicationsThe results suggest that manufacturing companies should target HR investments more towards line managers than to frontline employees. More specifically, they should concentrate efforts on the ability and opportunity bundles.Originality/valueThe article contributes to the very limited empirical evidence on the impact of HRM differentiation on firm performance by analysing sub-dimensions in a context not previously analysed.

The effect of supplier development initiatives on purchasing performance: a structural model

2005 ◽  
Vol 10 (4) ◽  
pp. 289-301 ◽  
Author(s):  
Cristóbal Sánchez‐Rodríguez ◽  
David Hemsworth ◽  
Ángel R. Martínez‐Lorente
Keyword(s):  
Supply Chain ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Structural Model ◽  
Essential Element ◽  
Equation Modeling ◽  
Supplier Development ◽  
Manufacturing Companies ◽  
Content Type ◽  
Different Levels

PurposeSupply chain management is an increasingly important organizational concern, and proper management of supplier relationships constitutes one essential element of supply chain success. However, there is little empirical research that has tested the effect of supplier development on performance. The main objective is to analyze the effect of supplier development practices with different levels of implementation complexity on the firm's purchasing performance.Design/methodology/approachThree supplier development constructs were defined: basic supplier development, moderate supplier development, and advanced supplier development. Three structural models were hypothesized and tested using structural equation modeling through field research on a sample of 306 manufacturing companies in Spain.FindingsIdentified important interrelationships among the various supplier development practices, basic, moderate, and advanced. Also indicated that the implementation of supplier development practices significantly contributes to the prediction of purchasing performance.Research limitations/implicationsThe use of a single key informant could be seen as a potential limitation of the study. The study was a cross‐sectional and descriptive sample of the manufacturing industry at a given point in time. A more stringent test of the relationships between the different levels of supplier development and performance requires a longitudinal study, or field experiment.Practical implicationsThis study focused on supplier development practices and revealed how involving suppliers in supplier development activities is important and may help buyers to increase their purchasing performance. The findings from the structural analysis should provide practicing managers with insights on how these practices and their benefits are related in terms of purchasing performance, thus affecting their ability to make better sourcing decisions.Originality/valueFills an important gap in the purchasing literature with respect to the area of supplier development. While there is much written about supplier development based on conceptual and case study research, this study is unique in that it is the first attempt to empirically model the relationships between different levels of supplier development and their impact on purchasing performance using a comprehensive set of practices.

Differentiating aspects of product innovation processes in the food industry

2014 ◽  
Vol 116 (8) ◽  
pp. 1346-1368 ◽  
Author(s):  
Rao Sanaullah Khan ◽  
John Vincent Grigor ◽  
Alan G. Win ◽  
Mike Boland
Keyword(s):  
New Zealand ◽  
Manufacturing Industry ◽  
Value Added ◽  
Manufacturing Companies ◽  
Food Manufacturing ◽  
Content Type ◽  
Significant Difference ◽  
Group 2 ◽  
Innovation Processes ◽  
Group 1

Purpose – The purpose of this paper is to sketch a comparative account of NPD approaches between registered New Zealand food companies that are doing some sort of functional foods (FF) development (Group 1) and those that are not (Group 2); to generate a better understanding of differences and commonalities in their NPD approaches from resource-based view of competitive advantage. Design/methodology/approach – This paper opted an exploratory approach using a quantitative survey across food manufacturing companies in New Zealand. The primary foci of this empirical investigation were: orientation towards the NPD, innovation processes, collaborative NPD links and routes to commercialisation. Findings – The results (based on a 22 per cent response rate) show a significant difference (p<0.05) in the aims and mode of NPD between Groups 1 and 2. Further it was observed that food companies in Group 1 have significantly (p<0.05) more diverse external collaborations with broader aims to collaborate, in comparison with food companies in Group 2. Research limitations/implications – This study was conducted in New Zealand and thus generalisability of the findings may have to be interpreted carefully. Practical implications – The traditional NPD approach (independent and closed NPD), with loose intellectual property protection practices, dominates the food manufacturing industry in New Zealand. Research-oriented collaborations need to be strengthened in their scope and content to develop the innovative capabilities and capacities of small and medium enterprises (SME's) within future value-added food productions. Originality/value – This research provides the comparative narration of innovation process of food manufacturing companies with reference to FFs development.

Reshoring drivers and barriers in the Swedish manufacturing industry

2018 ◽  
Vol 11 (2) ◽  
pp. 174-201 ◽  
Author(s):  
Gabriella Engström ◽  
Kristina Sollander ◽  
Per Hilletofth ◽  
David Eriksson
Keyword(s):  
Manufacturing Industry ◽  
Future Research ◽  
Location Decisions ◽  
Location Decision ◽  
Manufacturing Companies ◽  
Content Type ◽  
Manufacturing Location ◽  
Practical Implications ◽  
Insight Into

PurposeThe purpose of this study is to explore reshoring drivers and barriers from a Swedish manufacturing perspective.Design/methodology/approachThis paper is a case study, including four Swedish manufacturing companies, with focus on drivers and barriers from the context of the Swedish manufacturing industry. A literature review of previously established drivers and barriers is used to map out the empirical findings and thereby identify potential gaps between the current body of literature and drivers and barriers from a Swedish manufacturing context.FindingsThe findings of the study suggest that quality issues continue to be one of the strongest reshoring drivers. Except for product quality, quality is also connected to host country’s infrastructure, communication and service. The supply chain perspective is a source of several drivers and is identified as a perspective often overlooked in offshoring decisions. Barriers related to firm specifics were more elaborately discussed by the companies, especially concerning calculation of location decision and the need to invest in resources, which allows for a higher level of capacity at the home country facility.Research limitations/implicationsThe study develops a structured table of reshoring drivers and barriers which can serve as a base for future research. Future research on the calculation of location decisions is deemed as a crucial step to further understand reshoring and aid companies in the decision-making process.Practical implicationsThe drivers and barriers identified in the study can give practitioners insight into reshoring from the perspective of the Swedish manufacturing industry and thus aid in future manufacturing location decisions. The table of drivers and barriers can also be important to understand how Sweden can strengthen its competitive advantage and motivate more companies to reshore manufacturing.Originality/valueThis is one of only few papers from the Nordic countries and also one of few case studies examining reshoring in manufacturing companies.

The skill needs of the manufacturing industry: can higher education keep up?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Oran Doherty ◽  
Simon Stephens
Keyword(s):  
Higher Education ◽  
Best Practice ◽  
Manufacturing Industry ◽  
Manufacturing Sector ◽  
Rapid Development ◽  
Time Frame ◽  
Manufacturing Companies ◽  
Senior Managers ◽  
Experiential Training ◽  
Content Type

PurposeThis paper explores the implications for higher education of the rapid development in technology used by the manufacturing sector. Higher education programmes change or new courses are introduced in attempts to match labour market demands. However, the pace of change in the manufacturing industry challenges the authors to reconceive how programmes and modules can and should be designed and delivered.Design/methodology/approachThis study is based on interviews with 26 senior management representatives from manufacturing companies in Ireland. The 26 senior managers and their companies represent the wide diversity of Ireland's manufacturing sector. All the interviews were face to face, complimented by a short questionnaire. Follow-up interviews focussed on the emergent findings were carried out to aid the writing of recommendations for the best practice in programme design and delivery.FindingsWhat emerges from this study is that the manufacturing industry needs skills at three distinct levels. The authors define and classify the skill requirements at entry, competent and expert level. The authors place an emphasis on upskilling as an aid to movement between the three levels. In addition, and significantly, the desired time frame for delivery of these skills and/or upskilling is very short.Originality/valueAccelerated reskilling programmes with faster, shorter bursts of work-based learning (WBL) and experiential training are required. With a growing demand for those at competent and expert level, it is necessary to promote WBL to facilitate the upskilling of those employed in manufacturing roles, particularly in small and medium-sized enterprises (SMEs).

An Analysis of Knowledge Space Concept and Recursive Approach for Servitizing in Manufacturing Industries

2014 ◽  
pp. 273-291
Author(s):  
H. M. Belal ◽  
Kunio Shirahada ◽  
Michitaka Kosaka
Keyword(s):  
Competitive Advantage ◽  
Value Chain ◽  
Manufacturing Industry ◽  
Manufacturing Companies ◽  
Knowledge Space ◽  
Creation Process ◽  
A Value ◽  
A Company ◽  
Analysis Of Knowledge ◽  
Space Concept

This chapter proposes a knowledge space concept and a recursive approach to servitizing in the manufacturing industry. Manufacturing companies need to move up the value chain and compete on the basis of value delivered rather than on the basis of typical products. Therefore, more corporations are adding value to their core corporate offerings through services, which is called servitization, and the strength of service activities within the manufacturing industry (servitization) has become the main source of competitive advantage. This chapter identifies two exclusive approaches to adapting servitization in the manufacturing industry called the knowledge space concept and recursive approach, which also explains the value co-creation process with customers through integrating “B-to-B to C,” which produces a company that is a value provider.

Frugal innovation enablers: a comprehensive framework

2020 ◽  
Vol 12 (1) ◽  
pp. 1-20 ◽  
Author(s):  
Marjan Niroumand ◽  
Arash Shahin ◽  
Amirreza Naghsh ◽  
Hamid Reza Peikari
Keyword(s):  
Manufacturing Industry ◽  
Social Aspect ◽  
Research Approach ◽  
Manufacturing Companies ◽  
Snowball Sampling ◽  
Environmental Aspect ◽  
Frugal Innovation ◽  
Content Type ◽  
Home Appliance ◽  
Comprehensive Framework

Purpose This paper aims to propose a framework for the dimensions of frugal innovation enablers in small and medium-sized enterprises (SMEs). Design/methodology/approach A mixed research approach has been applied. First, by a comprehensive literature review, the most important factors influencing frugal innovation have been identified. Then, an interview has been conducted with 18 experts who were selected by snowball sampling method. In the next step, all identified variables have been modified in a questionnaire with 48 factors, which were distributed to 200 employees and managers of SMEs in the home appliance manufacturing industry of Isfahan province, who were selected by non-random sampling. Data has been analyzed using SPSS-25 software for exploratory factor analysis. Findings Findings indicated that the most important enablers of frugal innovation are world-class design, human aspect, marketing, support, knowledge, social aspect, prototyping, cultural aspect, environmental aspect, distinct brand creation, core functions focus, local R&D, cost-cutting business model and low-cost production. Practical implications The proposed framework provides an effective basis to managers and decision-makers in the field of frugal innovation to evaluate their capabilities in implementing frugal innovation, the results of which are helpful in developing a roadmap for achieving frugal innovation in SMEs and particularly in home appliance manufacturing companies. Originality/value The comprehensive framework of this study has not been applied, developed or studied in the literature. The proposed framework provides new insights for future studies on the subject of frugal innovation, e.g. investigating the influence of frugal innovation on frugal innovation performance.

Factors influencing liquidity position of Indian manufacturing companies

2020 ◽  
Vol 10 (2) ◽  
pp. 243-260
Author(s):  
Amit Tripathy ◽  
Shigufta Hena Uzma
Keyword(s):  
Manufacturing Industry ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Emerging Economy ◽  
Market Mechanism ◽  
Manufacturing Companies ◽  
Content Type ◽  
Factors Influencing ◽  
Indian Context ◽  
The Impact

PurposeThe purpose of this paper is to investigate the increasing demand for corporate liquidity and examines the various factors influencing the cash position of firms in India. The financial policy to hold cash gained impetus after the financial crisis when the companies faced a severe cash crunch. However, the firms operating in emerging nations have an imperfect market mechanism with stringent regulatory norms. Thus, this paper attempts to examine the determinants of corporate cash holdings in an emerging country like India.Design/methodology/approachThe paper focuses on the impact of various factors (leverage, firm size, profitability, growth along with other variables), on the cash structure of all the manufacturing companies listed on the Bombay stock exchange. The study employs panel data methodologies over a sample of 323 firms over a period of eight years from 2010 to 2017.FindingsSignificant estimators affecting cash holdings of a firm are the size of a firm, debt levels, tangibility, sales growth and research and development expense. Overall, the study finds evidence on the existence of Pecking Order theory in explaining the determinants of cash holdings in the Indian market.Research limitations/implicationsThe study attempts to explore the critical determinants of cash in the Indian context which can be useful for managers and academicians to understand how the key theories of cash holdings operate in an emerging economy like India.Originality/valueIndia is an emerging economy and has recently gained global attention and has become a hotspot for foreign investments. Thus, this paper explores pieces of evidence on the critical factors affecting cash holdings in India. The study would provide an understanding of the existing cash policy in the Indian context and attempts to find the changes in the financing structure adopted by the manufacturing industry in the given period.

Nonlinear and complementary effects of responsive and proactive market orientation on firms’ competitive advantage

2019 ◽  
Vol 32 (4) ◽  
pp. 841-859
Author(s):  
Fabian F. Osorio Tinoco ◽  
Miguel Hernández-Espallardo ◽  
Augusto Rodriguez-Orejuela
Keyword(s):  
Competitive Advantage ◽  
Market Orientation ◽  
Hierarchical Regression ◽  
Future Research ◽  
Manufacturing Companies ◽  
Positive Interaction ◽  
Cross Sectional ◽  
Content Type ◽  
Positive Effects ◽  
Proactive Market Orientation

Purpose The purpose of this paper is to clarify how responsive market orientation (RMO) and proactive market orientation (PMO) create competitive advantage. Design/methodology/approach Nonlinear and interaction effects are tested by applying hierarchical regression analysis to a sample of 272 Colombian manufacturing companies. Findings The results show that although market orientation promotes the competitive advantage of a business, both approaches – responsive and proactive – exhibit saturation effects and a positive interaction. Research limitations/implications The main limitation of this study is the cross-sectional design and the use of a single source for data collection. It is suggested that future research includes different orientations combined with these two market orientations – responsive and proactive – for achieving competitive advantage. In addition, further studies could replicate this analysis for different environmental conditions. Originality/value This paper simultaneously evaluates the nonlinear and complementary effects of RMO and PMO. From a strategic standpoint, it presents an empirical confirmation of the familiarity trap, the failure trap and the positive effects of combining RMO and PMO.

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