Cost-driven motives to relocate manufacturing abroad among small- and medium-sized manufacturers

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jan Stentoft ◽  
Kent Adsbøll Wickstrøm ◽  
Anders Haug ◽  
Kristian Philipsen

PurposeThe purpose of this paper is to advance the understanding of how Industry 4.0 related technologies affect the relocation of manufacturing abroad by small and medium-sized enterprises.Design/methodology/approachThis paper contains an empirical analysis of how Industry 4.0 related technologies affect the cost-driven relocation of manufacturing abroad based on 191 comprehensive and full responses to a questionnaire survey distributed in 2018 among small- and medium-sized Danish manufacturers.FindingsThis paper builds upon data, which reveals that companies' pursuit of cost-focused competitive strategies is positively correlated with relocating manufacturing abroad. However, the data also shows that the more Industry 4.0-ready decision-makers are, the less cost-focused strategy drives manufacturing abroad. Furthermore, perceived barriers to Industry 4.0 related technologies promote the cost-driven relocation of manufacturing abroad whereas perceived drivers decrease this phenomenon.Research limitations/implicationsThis paper is based on the answers given by a single respondent from each company and only on Danish respondents.Practical implicationsThe results indicate a need to invest resources to obtain a better knowledge of Industry 4.0 related technologies when used in processes involved in decisions about where to locate manufacturing.Originality/valueThis paper contains new, empirically founded information about how Industry 4.0 related technologies affect the cost-driven relocation of manufacturing abroad from the perspective of small- and medium-sized manufacturers.

2017 ◽  
Vol 31 (2) ◽  
pp. 192-206 ◽  
Author(s):  
Christina Holm-Petersen ◽  
Sussanne Østergaard ◽  
Per Bo Noergaard Andersen

Purpose Centralization, mergers and cost reductions have generally led to increasing levels of span of control (SOC), and thus potentially to lower leadership capacity. The purpose of this paper is to explore how a large SOC impacts hospital staff and their leaders. Design/methodology/approach The study is based on a qualitative explorative case study of three large inpatient wards. Findings The study finds that the nursing staff and their frontline leaders experience challenges in regard to visibility and role of the leader, e.g., in creating overview, coordination, setting-up clear goals, following up and being in touch. However, large wards also provide flexibility and development possibilities. Practical implications The authors discuss the implications of these findings for decision makers in deciding future SOC and for future SOC research. Originality/value Only few studies have qualitatively explored the consequences of large SOC in hospitals.


2015 ◽  
Vol 43 (3) ◽  
pp. 7-14 ◽  
Author(s):  
Jim Moffatt

Purpose – This case example looks at how Deloitte Consulting applies the Three Rules synthesized by Michael Raynor and Mumtaz Ahmed based on their large-scale research project that identified patterns in the way exceptional companies think. Design/methodology/approach – The Three Rules concept is a key piece of Deloitte Consulting’s thought leadership program. So how are the three rules helping the organization perform? Now that research has shown how exceptional companies think, CEO Jim Moffatt could address the question, “Does Deloitte think like an exceptional company?” Findings – Deloitte has had success with an approach that promotes a bias towards non-price value over price and revenue over costs. Practical implications – It’s critical that all decision makers in an organization understand how decisions that are consistent with the three rules have contributed to past success as well as how they can apply the rules to difficult challenges they face today. Originality/value – This is the first case study written from a CEO’s perspective that looks at how the Three Rules approach of Michael Raynor and Mumtaz Ahmed can foster a firm’s growth and exceptional performance.


2019 ◽  
Vol 30 (1) ◽  
pp. 117-139 ◽  
Author(s):  
Clinton Amos ◽  
Sebastian Brockhaus ◽  
Amydee M. Fawcett ◽  
Stanley E. Fawcett ◽  
A. Michael Knemeyer

PurposeThe purpose of this paper is to evaluate how service perceptions influence customer views of the authenticity of corporate sustainability claims. The goal of this paper is to help supply chain decision-makers better understand boundary conditions in order to design more enduring and impactful sustainability programs.Design/methodology/approachThe authors employ behavioral experiments, subjecting two theoretically derived hypotheses to verification across five diverse industries and two distinct sustainability vignettes.FindingsCustomer service perceptions emerge as a significant boundary condition to the perceived authenticity of sustainability efforts. Subjects attributed significantly higher authenticity toward sustainability efforts in above average vs below average service quality contexts. Further, respondents attributed deceptive motivations to sustainability efforts at companies with below average service.Research limitations/implicationsThe authors confirm the underlying tenet of social judgment theory, which suggests thata prioriperceptions create a zone of acceptability or rejection. Ultimately, investing in sustainability can lead to counterproductive cynicism.Practical implicationsThe authors infer that customers’ willingness to give companies credit for sustainability initiatives extends beyond service issues to any practice that influencesa prioriperceptions. Supply chain managers must rethink their role in designing both customer service and sustainability systems to achieve positive returns from sustainability investments.Originality/valueThe authors challenge the assumption that customers universally positively view sustainability efforts. If customers holda priorinegative service perceptions, otherwise well-designed sustainability programs may invoke cynical reactions. Thus, sustainability programs may not inoculate firm reputations from adverse incidents. Given they touch both service and sustainability systems, supply chain managers are positioned to holistically influence their design for competitive advantage.


2019 ◽  
Vol 74 (4) ◽  
pp. 915-929 ◽  
Author(s):  
Pramod Sharma ◽  
Jogendra Kumar Nayak

PurposeThis paper aims to examine the direct and indirect effects of tourists’ value on satisfaction and loyalty intentions in dark tourism.Design/methodology/approachThis research was conducted using the data collected through a questionnaire survey from 403 tourists visiting a dark tourism destination in India. Data were analyzed using CFA and SPSS macro (Process).FindingsThe findings confirmed that tourists’ values have significant direct and indirect effects on loyalty intentions via satisfaction in dark tourism. Among specific value, the strongest direct and indirect influence of emotional value in dark tourism is the unique finding of this research.Practical implicationsThis study would help the marketers, government, local authorities and relevant stakeholders operating in dark tourism to formulate policies and strategies to better serve this niche tourism.Originality/valueThis research is the first-known attempt to reveal the uniqueness of tourists’ perception of value in dark tourism. It could significantly add to the literature and practice of dark tourism.


2020 ◽  
Vol 123 (1) ◽  
pp. 159-175
Author(s):  
Alberto Mazzoleni ◽  
Enrica Pollonini

PurposeWe developed a model to demonstrate how multiple interrelated aspects of a firm influence its recourse to third-party financing, which frequently depends on the characteristics of each food production chain.Design/methodology/approachWe conducted an empirical research on a relevant sample of small- and medium-sized Italian dairy firms. Our research methodology is inspired by the grounded theory (Glaser and Strauss, 1967).FindingsOur findings illustrated that firm indebtedness is the result of intertwined variables, linked to different firm dimensions, including growth, financial structure and economic dynamics.Research limitations/implicationsA portion of the analysed phenomenon is not explained using the sample and econometric tools.Practical implicationsThere are practical implications for the decision-makers in a firm (in particular, the managers and the shareholders) as the model allows to evaluate the influence of a set of mutually interdependent firm variables for the indebtedness level.Originality/valueFirst, we considered the recourse to third-party financing within the context of the systems theory (Millová and Blatný, 2015) and from the perspective of linked causes and mutually connected variables. Second, our research focussed on a well-defined food chain and on features of firms operating in this context. Last, our model considered the impact of the recent economic crisis, which motivated us to review the existing models.


2020 ◽  
Vol 36 (10) ◽  
pp. 17-19

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Digital supply chains are a key facet of the Industry 4.0 revolution, and certain technological trends are seen as being key to implementing this in an organization. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shubham Tripathi ◽  
Manish Gupta

PurposeProcurement is a crucial part of supply chain management, consistently becoming a strategic vantage point in global competition. The industry 4.0 paradigm is transforming supply chains to smarter systems, giving rise to the concept of procurement 4.0. A systematic framework to transform in current scenario is crucial.Design/methodology/approachThis study brings together these current researches to propose a redesigned procurement process by combining several technologies. A BPR approach is taken to present the new process and its merits are discussed.FindingsA re-designed procurement framework is proposed. Radical improvements of cost, cycle time, human effort, degree of automation, traceability, information availability and uncertainty are achievable with the proposed framework.Practical implicationsThe proposed re-engineered process addresses the visualization barrier for managers. The proposed framework is grounded on BPR which provides a generic ground for developing redesign exercise along with the visualization of new process.Originality/valueThere is literature discussing implementation, impact and advantages of individual and combination of technologies on procurement process but lacks visualization of the transformed process combining these technologies.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
R.M. Sriram ◽  
S. Vinodh

PurposeThe purpose of this paper is to analyse the readiness factors for Industry 4.0 deployment in small and medium-sized enterprises (SMEs) using complex proportionality assessment (COPRAS) methodology.Design/methodology/approachIndustry 4.0 is vital for ensuring manufacturing competitiveness of SMEs. In order to facilitate Industry 4.0 adoption in SMEs, readiness factors need to be analysed. In this viewpoint, this article presents the analysis of readiness factors using multi-criteria decision-making (MCDM) tool COPRAS.FindingsThe priority of ranking of 15 readiness factors is obtained. The prioritized readiness factors would enable the smooth adoption of Industry 4.0 in SMEs.Practical implicationsThe study has been done based on inputs from industry practitioners and hence the results have practical relevance.Originality/valueThe analysis of readiness factors for Industry 4.0 in SMEs using COPRAS is the original contribution of authors.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thiago de Almeida Rodrigues ◽  
Caroline Maria de Miranda Mota ◽  
Udechukwu Ojiako ◽  
Fikri Dweiri

PurposeThe purpose is to identify the main characteristics of dry ports (DPs) in Brazil, discussing the role of this logistic player, challenges and opportunities. Furthermore, this study provides a structured framework to drive DP decision-makers, identifying and assessing a network of means–end objectives, which could be replicable to other contexts.Design/methodology/approachThis article approached initially a literature review and exploratory research to discuss the main characteristics of DPs in Brazil. The second step was to conduct a qualitative analysis following the value-focused thinking (VFT) approach in two case studies in Pernambuco state to assess the achievement of the main objectives.FindingsThis article identified that the main characteristics of DPs in Brazil are offering additional services with a cheaper storage cost, handling mainly import cargo and being connected to seaports through highways. Moreover, this study resulted in a framework to assess the objectives of DPs, which could be replicable in other contexts, improving the current operations of DPs.Practical implicationsThe framework to assess DPs' objectives bridged the gap between the literature and the practice working as a tool to drive decision-makers to improve the current performance of DPs in Brazil. Additionally, the main issues, challenges and opportunities discussed provide managers, policymakers and DPs operators with valuable insights into this theme.Originality/valueThis paper is the first study to present a framework to assess the objectives of DPs as a valuable tool to drive decision-makers to improve DPs operations. From this study, lessons could be learned and the process described could be replicable in other countries.


2015 ◽  
Vol 30 (5) ◽  
pp. 536-551 ◽  
Author(s):  
Sudarshan Kumar ◽  
Shrikant Gorane ◽  
Ravi Kant

Purpose – The purpose of this paper is to present an approach to successful supplier selection process (SSP) by understanding the dynamics between SSP enablers (SSPEs), using interpretive structure modelling (ISM) methodology and find out driving and the dependence power of enablers, using fuzzy MICMAC (Matriced’ Impacts Croisés Appliquée á un Classement) analysis. Design/methodology/approach – The group of experts from industries and the academics were consulted and ISM is used to develop the contextual relationship among various SSPEs for each dimension of supplier selection. The results of the ISM are used as an input to the fuzzy MICMAC analysis to identify the driving and the dependence power of SSPEs. Findings – The research presents a hierarchy-based model and mutual relationships among SSPEs. The research shows that there is a group of SSPEs having a high driving power and low dependence, which requires maximum attention and is of strategic importance, while another group consists of those SSPEs that have high dependence and low driving power, which requires the resultant actions. Research limitations/implications – The weightage obtained for the ISM model development and fuzzy MICMAC are obtained through the judgment of academician and few industry experts. It is the only subjective judgment and any biasing by the person who is judging the SSPEs might influence the final result. A questionnaire survey can be conducted to catch the insight on these SSPEs from more organizations. Practical implications – This category provides a useful tool for top management to differentiate between independent and dependent SSPEs and their mutual relationships which would help them to focus on those key SSPEs that are most significant for effective supplier selection. Originality/value – Arrangement of SSPEs in a hierarchy, the categorization into the driver and dependent categories, and fuzzy MICMAC are an exclusive effort in the area of supplier selection.


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