Analysis of manufacturing strategy in developing countries

2016 ◽  
Vol 27 (2) ◽  
pp. 234-260 ◽  
Author(s):  
Ike Ehie ◽  
Obinna Muogboh

Purpose – The purpose of this paper is to formulate the manufacturing strategy in a developing country with particular reference to Nigeria in sub-Saharan African country. Design/methodology/approach – Using survey methodology and the partial least squares – structural equation modeling technique, The authors find that in addition to the four basic environmental factors – business cost, labor availability, competitive hostility and environmental dynamism, both government policies and the adopted manufacturing practices have significant effects on the manufacturing strategic priorities. Findings – Among other findings, the environmental factors of government policies and the type of manufacturing practices adopted have significant effects on manufacturing strategy. Research limitations/implications – Further studies should explicitly look into the effect of the adopted manufacturing strategy on company performance. Possibly, a case study research might be considered to establish this relationship. Practical implications – As manufacturing firms continue to experience greater competition, especially from China, and given the technological advancement in manufacturing, the business environment facing Nigerian manufacturing companies is likely to become more dynamic, complex, diverse and even hostile. Under such a turbulent climate, the configuration and effective deployment of manufacturing strategies is imperative to achieving superior business performance. Social implications – A more effective strategy will make companies more competitive in the market place, thus creating employment in a sector that has witnessed declining growth in employment. Originality/value – The linkage between environmental factors and manufacturing strategy has been studied widely. However, this study reveals the role of government policies and manufacturing practices in formulating manufacturing strategy in a developing country context.

2018 ◽  
Vol 29 (6) ◽  
pp. 1042-1064 ◽  
Author(s):  
Ayman Bahjat Abdallah ◽  
Israa Hussein Nabass

Purpose The purpose of this paper is to determine supply chain practices that contribute most to the success of agile manufacturing (AM), and to examine their effects on its implementation levels in the Jordanian manufacturing sector. It also investigates the effect of AM on operational performance (OP). Design/methodology/approach The study is based on survey data collected from 294 manufacturing companies from different industry types in Jordan. Validity and reliability analyses were performed using SPSS and AMOS, and the study hypotheses were tested using structural equation modeling. Findings The results revealed that supplier involvement, internal integration, and modularization of products positively and significantly affect AM. Customer involvement and postponement were insignificantly related to AM. Further, the results demonstrated that AM positively and significantly affect OP. Originality/value A limited number of previous studies investigated supply chain antecedents of AM. Further, there is no consensus among researchers on these practices. In addition, this area is underinvestigated in the developing countries in general and in Jordan in particular. The current study contributes to the literature by determining the most commonly linked supply chain practices to AM and examining their effects on its implementation levels in the context of a developing country, Jordan.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Godson A. Tetteh ◽  
Kwasi Amoako-Gyampah ◽  
Amoako Kwarteng

Purpose Several research studies on Lean Six Sigma (LSS) have been done using the survey methodology. However, the use of surveys often relies on the measurement of variables, which cannot be directly observed, with attendant measurement errors. The purpose of this study is to develop a methodological framework consisting of a combination of four tools for identifying and assessing measurement error during survey research. Design/methodology/approach This paper evaluated the viability of the framework through an experimental study on the assessment of project management success in a developing country environment. The research design combined a control group, pretest and post-test measurements with structural equation modeling that enabled the assessment of differences between honest and fake survey responses. This paper tested for common method variance (CMV) using the chi-square test for the difference between unconstrained and fully constrained models. Findings The CMV results confirmed that there was significant shared variance among the different measures allowing us to distinguish between trait and faking responses and ascertain how much of the observed process measurement is because of measurement system variation as opposed to variation arising from the study’s constructs. Research limitations/implications The study was conducted in one country, and hence, the results may not be generalizable. Originality/value Measurement error during survey research, if not properly addressed, can lead to incorrect conclusions that can harm theory development. It can also lead to inappropriate recommendations for practicing managers. This study provides findings from a framework developed and assessed in a LSS project environment for identifying faking responses. This paper provides a robust framework consisting of four tools that provide guidelines on distinguishing between fake and trait responses. This tool should be of great value to researchers.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahdi Salehi ◽  
Mohammad Ali Fahimi ◽  
Grzegorz Zimon ◽  
Saeid Homayoun

Purpose This study aims to analyze the literature on knowledge management on intellectual capital, social capital and its contribution to Iranian companies’ innovation. Design/methodology/approach To investigate knowledge management’s relationship on intellectual capital, social capital and innovation, using structural equation modeling based on data collected from 205 chief executive officers, production managers and marketing managers of Iranian companies. The research instrument is a standard questionnaire consisting of 109 questions in which 5 of them are demographic questions, 26 questions were asked to reveal the knowledge management process, 40 questions for intellectual capital, 21 for social capital and 17 for innovation. Findings The results show that knowledge management has a positive and significant relationship between intellectual capital and social capital. Knowledge management did not have a significant effect on innovation. However, intellectual capital and social capital have a significant effect on innovation. On the other hand, knowledge management mediated by intellectual capital and social capital has a positive and significant indirect effect on innovation. Originality/value The paper includes the implications for developing knowledge management and intellectual, social capital leading to innovation in manufacturing companies. Knowledge management can improve the innovation performance of a company if it is shared and applied effectively. This study addresses an important subject and the findings may be used by professionals and managers or another person interested in advancing knowledge management that leads to innovation.


2005 ◽  
Vol 10 (4) ◽  
pp. 289-301 ◽  
Author(s):  
Cristóbal Sánchez‐Rodríguez ◽  
David Hemsworth ◽  
Ángel R. Martínez‐Lorente

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.


2018 ◽  
Vol 48 (3) ◽  
pp. 448-466 ◽  
Author(s):  
Sladjana Cabrilo ◽  
Aino Kianto ◽  
Bojana Milic

Purpose In investigating the linkage between intellectual capital (IC) and innovation, it is important not only to explore how IC as a whole is associated with organizations’ innovative performance but also to gain a deep understanding of the role of different IC components (groups of intangibles) in companies’ innovation performance, which is the purpose of this paper in the context of Serbian companies. Design/methodology/approach This research is based on survey data collected from 100 Serbian companies with at least 100 employees during 2014/2015. Six IC components were analyzed (human, structural, internal relational, external relational, renewal and entrepreneurial) in terms of their effect on innovation performance. Analyses were conducted using structural equation modeling and correlation analysis. Findings Findings demonstrate that renewal capital, internal relational capital and structural capital have statistically significant positive effects on overall innovative performance in Serbian companies. Practical implications The outcomes reveal potential and barriers within IC that are crucial to innovation performance in Serbian companies. In this way, this study enables a deeper understanding of intangible drivers of innovation and highlights possibilities to foster intangible innovation potential in Serbian companies. Originality/value As context (economic and cultural) has emerged as a relevant factor in researching IC, this study is original in investigating IC effect on innovation within the Serbian business environment. Additionally, the broad sexpartite taxonomy of IC contributes to a wider understanding of knowledge and its linkages to innovation.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guofeng Ma ◽  
Shan Jiang ◽  
Jianyao Jia

PurposeA lack of reliable and effective communication tools poses major barriers impeding the performance of construction projects consisting of diverse participants. Although some construction project teams (CPTs) begin to apply social media (SM) as an available approach for project management the entire mechanism of SM adoption in this specific context remains understudied. Therefore, this study aims to adopt a CPT's lens to investigate the critical antecedents and associated effects underlying SM adoption in the construction industry.Design/methodology/approachBased on the technology–organization–environment (TOE) theory, a conceptual model was proposed and tested by empirical data collected from 159 CPTs in China. Structural equation modeling technique was employed for data analysis.FindingsThe results demonstrate that all the five extracted TOE-based antecedents including two technological factors (i.e. compatibility and expected cost), one organizational factor (i.e. top management support) and two environmental factors (i.e. project partner collaboration and project fit) are crucial to the adoption of SM in CPTs. Besides, SM acceptance is found to mediate the relationships between organizational and environmental factors and SM use. Moreover, SM use significantly predicts the communication effectiveness of CPTs.Research limitations/implicationsA questionnaire study based on cross-sectional data from China may only unveil the logic of SM adoption in the context of Chinese construction industry within a shorter time interval. It is recommended that future research could develop longitudinal studies among various construction practitioners in different countries to further specify and generalize the current findings.Originality/valueThis paper provides a comprehensive understanding of SM adoption in the construction industry by exploring the preadoption antecedents and postadoption effects from the perspective of project teams. The empirical findings advance the current web-based project management literature and afford new insights for construction practitioners into better managing SM application to reap its full capabilities in projects.


Author(s):  
Navee Chiadamrong ◽  
Tran Thi Tham

Growing in the competitive environment, organizations need to find ways to improve their performance even better by ensuring that all key drivers are being developed and utilized effectively. Thai and Vietnamese food industries are rapidly growing sectors. This study investigates the relationships between supply chain capabilities and competitive advantages towards business performance, and compares the above mentioned relationships between Thai and Vietnamese food industries. The data were gathered from conducted surveys with the food manufacturing companies in both countries, and tested by Structural Equation Modeling. The empirical results show that supply chain capabilities play an important role in business improvement in both countries. While, supply chain integration is considered as a critical factor for the Vietnamese food industry, human resource management is much regarded as important for the Thai food industry. These findings help companies in each country decide the best strategy for differentiating themselves in their business environment.


2019 ◽  
Vol 39 (5) ◽  
pp. 787-814 ◽  
Author(s):  
Wantao Yu ◽  
Roberto Chavez ◽  
Mark Jacobs ◽  
Chee Yew Wong ◽  
Chunlin Yuan

Purpose It remains unclear how environmental scanning (ES) can generate firm performance through supply chain management (SCM) practices. The purpose of this paper is to investigate the effects of ES on operational performance through supply chain integration (SCI) and supply chain responsiveness (SCR). Design/methodology/approach The scanning–interpretation–action–performance (SIAP) model and organization information processing theory (OIPT) are used to explain the ES–SCI–SCR–performance (S–I–A–P) relationships, which were tested by structural equation modeling of survey data of 329 manufacturing firms in China. Findings The results indicate that ES has a significant positive effect on SCI and SCR. SCI is significantly and positively related to SCR. SCR partially mediates the relationship between ES and operational performance, and fully mediates the relationship between SCI and operational performance. Practical implications Supply chain managers should collaborate with senior executives to obtain signals from ES activities, as input for building SCI and SCR and use SCI as a joint interpretation mechanism of ES signals for developing SCR to reap operational advantages in the rapidly changing business environment. Originality/value Strategic management academics and practitioners have explicitly emphasized the importance of ES in developing strategic plans but are unsure about the role of SCM in creating operational advantages through ES. Using the SIAP model, this study theorizes and demonstrates how SCI and SCR transform signals from ES into operational performance. In doing so, a more precise application of OIPT is explicated in the supply chain context.


2020 ◽  
Vol 14 (2) ◽  
pp. 203-213
Author(s):  
Fahri Özsungur

Purpose The purpose of this paper is to examine the association between mobbing and service innovation performance. In this context, the mediating role of boreout, a new concept in the literature, was examined. Design/methodology/approach This study was conducted with 240 participants recruited in manufacturing companies affiliated with Adana Chamber of Industry in the province of Adana Turkey in November 2019. The research was analyzed by the structural equation modeling method with the social exchange theory basis. Findings Findings revealed that boreout and mobbing were negatively associated with service innovation performance. Mobbing was positively associated with boreout and job boredom. According to the finding of this study, boreout partially mediated the effect of the mobbing on service innovation performance. Originality/value This study reveals the association among mobbing, boreout and service innovation performances of employees of companies operating in manufacturing sector. The findings of this study provide important practical knowledge to businesses and academics regarding the field of management, entrepreneurship and innovation.


2018 ◽  
Vol 30 (3) ◽  
pp. 199-215 ◽  
Author(s):  
Syed Ali Raza ◽  
Arsalan Najmi ◽  
Nida Shah

Purpose This paper aims to explore the significance of knowledge transfer (KT) from universities to organizations by employing in-service employees, who are working in organizations and at the same time studying in the universities, as the channel. Design/methodology/approach By using survey methodology, data were collected from 216 in-service business students via self-administered questionnaires and partial least square structural equation modeling (PLS-SEM) was applied. Findings The results revealed that intrinsic motivation, psychological hardiness, functional value and innovative culture significantly predict the acquired knowledge which henceforth positively affects KT. Research limitations/implications Data from business students of the single university were extracted which limits the findings, and hence directed future researchers to explore further. Practical implications Interactive, case study-based training and others implications are discussed to effectively transfer the knowledge from universities to organizations. Originality/value The role of in-service employed students is of significant importance, as students exist as an intermediary between organizations and universities, and so both universities and organizations should make maximum use of the said channel for an effective KT.


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