Interlinkages and paths of German factories' manufacturing and R&D strategies in China

2014 ◽  
Vol 25 (2) ◽  
pp. 175-197 ◽  
Author(s):  
Steffen Kinkel ◽  
Oliver Kleine ◽  
Janis Diekmann
Keyword(s):  
New Product Development ◽  
Manufacturing Industry ◽  
Manufacturing Companies ◽  
Content Type ◽  
Innovation Activities ◽  
Innovation Modes ◽  
Key Sectors ◽  
Innovation Strategies ◽  
Development Paths ◽  
Depth Interviews

Purpose – As a consequence of the sluggish growth in Europe caused by the Euro-crisis, many German companies are currently expanding their manufacturing and innovation activities in fast-growing China – or intend to do so. The paper aims to provide new practical and theoretical insights on how German manufacturing companies are readjusting and further developing their production and innovation strategies in China and which future paths they plan to follow to make the most out of their foreign factories in this market. Design/methodology/approach – Based on in-depth interviews with the top management of 18 German manufacturing companies in China, this paper analyzes the present state, interlinkages and future development paths of their local manufacturing and innovation strategies, employing Ferdows' framework of foreign factory roles. Findings – The authors find that up to now most of the surveyed factories represent an additional type of an advanced server factory, characterized by a “Chinese gap” in new product development (NPD) and basic innovations. Based on that the authors propose five guiding principles on how foreign factories in China can cope with the upcoming challenges in China and make the most of their local strategies. Originality/value – The research provides unexpected insights of a high strategic relevance for practitioners currently engaged in optimising their global production and innovation footprint. It challenges established frameworks on foreign production and innovation modes by comparing them to the established practice of frontrunner companies from key sectors of the German manufacturing industry.

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.

Joining a collaborative space: is it really a better place to work?

2019 ◽  
Vol 40 (2) ◽  
pp. 14-21 ◽  
Author(s):  
Ignasi Capdevila
Keyword(s):  
Social Innovation ◽  
Content Type ◽  
Innovation Activities ◽  
Collaborative Spaces ◽  
Innovation Modes ◽  
Living Labs ◽  
Collaborative Space ◽  
Coworking Spaces ◽  
Innovation Approach

Purpose Collaborative spaces such as Fab Labs, Living Labs, coworking spaces, hackerspaces, makerspaces, etc. are localized spaces that offer open access to resources. The purpose of this paper is to explain what motivates participants in such spaces, according to different innovation logics. Design/methodology/approach The paper is based on qualitative studies of 43 collaborative spaces in Paris and Barcelona. Findings This paper proposes a typology of different collaborative spaces to understand what motivates their participants. The classification is based on the innovation approach of each type of space: methods and techniques of ideation, social innovation, open innovation and user-driven innovation. Research limitations/implications The classification of collaborative spaces clearly identifies different innovation approaches. However, it might result to be too simplistic and may not represent all spaces under the same denomination. Practical implications This paper provides some guidelines for managers who run or intend to open a collaborative space. In bottom-up innovation modes, to increase the commitment of the participants, managers should provide the tools and resources needed to successfully achieve the goals of the members’ projects. In top-down innovation modes, managers should rather focus on designing an attractive and rewarding process of ideation. Originality/value This paper contributes to the understanding of collaborative spaces; it shows that participants’ engagement is related to the nature of the innovation activities that take place in collaborative spaces, and it compares different types of spaces to explain their differences and similarities.

scholarly journals Measuring radical innovation project success: typical metrics don’t work

2018 ◽  
Vol 39 (4) ◽  
pp. 34-41 ◽  
Author(s):  
Jimmi Normann Kristiansen ◽  
Paavo Ritala
Keyword(s):  
Radical Innovation ◽  
Incremental Innovation ◽  
Content Type ◽  
International Firms ◽  
Innovation Activities ◽  
Innovation Projects ◽  
Innovation Project ◽  
And Performance ◽  
Depth Interviews

Purpose Firms frequently struggle with measuring the performance of their radical innovation activities. Due to the uncertainty and ambiguity involved, key performance indicators (KPIs) used for incremental innovation projects are often not useful in this context. The purpose of this paper is to explore suitable KPIs particularly useful for radical innovation projects. Design/methodology/approach This study first reviews commonly used measures for innovation projects, which is then followed by case-study evidence from three industry-leading international firms. This study includes 13 in-depth interviews with innovation managers and directors in these firms, providing insights on how they measure the progress and performance of radical innovation projects. Findings KPIs used commonly in incremental innovation showed lackluster results in the case firms and were problematic for radical innovation context. A key finding was that radical innovation project performance should be evaluated based on the process rather than on the expected outcome. Concurrently, based on the literature review and the cases, three sets of KPIs with 13 specific KPIs useful for radical innovation projects are proposed. Originality/value The paper addresses a core challenge in using established KPIs in a radical innovation context. The paper gathers and synthesizes a range of measurement points suitable for radical innovation projects and provides specific suggestions for appropriate metrics that innovation managers can use.

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).

The evolution of the pathways of innovation strategies in the automotive industry. The case of Fiat Chrysler Automobiles

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elena Candelo ◽  
Ciro Troise ◽  
Diego Matricano ◽  
Amedeo Lepore ◽  
Mario Sorrentino
Keyword(s):  
Automotive Industry ◽  
Open Innovation ◽  
Relevant Literature ◽  
Theoretical Framework ◽  
Knowledge Flows ◽  
Historical Period ◽  
Content Type ◽  
Innovation Activities ◽  
Innovation Strategies

PurposeFundamental management innovations have been ideated and developed in the automotive industry. Over the years, carmakers have radically modified their innovation strategies. Currently, carmakers are increasingly adopting open innovation approaches, moving from a closed to open innovation paradigm. The aim of this paper is to reconstruct the evolution of the innovation activities performed by carmakers and to propose an original periodisation of innovation strategies in the automotive industry since its origins.Design/methodology/approachThis paper analyses the relevant literature and proposes a theoretical framework that defines how innovation strategies have changed from the birth of the automotive industry to current times. A detailed in-depth case study of Fiat Chrysler Automobiles (FCA), one of the top ten global carmakers, is used to corroborate the theoretical framework. The case study reconstructs the entire evolution of the innovation strategies of the company from its origins to the present day.FindingsThe paper proposes an original periodisation by identifying three evolutionary phases of innovation strategies pursued by carmakers: “internal innovation”, “collaborative innovation” and “towards open innovation”. Each phase embraces a historical period, and for each period, the most relevant managerial aspects, as well as the types and direction of knowledge flows for fostering innovation, are analysed. The case study provides clear evidence that FCA has undergone the three above-cited phases in fostering its innovation strategies.Originality/valueThe study reconstructs the evolution of the innovation strategies performed by global carmakers, proposing an original periodisation of the transitions that occurred in practice in the automotive industry. This paper is among the first to explore the evolution of innovation strategies in the automotive industry since its origins to date and to highlight the salient differences that have occurred over time.

Competition intensity as moderator for NPD success

2019 ◽  
Vol 11 (4) ◽  
pp. 618-647
Author(s):  
Tor Guimaraes ◽  
Ketan Paranjape
Keyword(s):  
New Product Development ◽  
Success Factors ◽  
Multivariate Regression Analysis ◽  
Manufacturing Companies ◽  
Competition Intensity ◽  
Content Type ◽  
Intense Competition ◽  
Proposed Model ◽  
The Impact

Purpose This study aims to test the moderating impact of competition intensity on the relationships between the new product development (NPD) success factors and company success in NPD. Design/methodology/approach A mailed questionnaire collected information from 311 manufacturing companies to test the proposed model with moderated multivariate regression analysis. Findings The results corroborate the impact of competition intensity on the relationships between the success factors individually and company success performing NPD. Research limitations/implications Despite the relatively broad scope of the proposed model, other success factors and/or moderating and mediating variables may also be important. As such, these variables should be identified and tested in future studies. Practical implications In practice, competition is viewed as an unavoidable factor beyond the control of managers within a company. Undeniably, competition is a great stimulant for business innovation. Thus, it is important for managers to understand the need, to focus attention managing the success factors most important to increase the likelihood of long-term success for NPD projects, particularly in markets under intense competition. Originality/value While the study is grounded on well-established literature, its major constructs originated from relatively isolated areas of knowledge. The major contribution is empirically testing an integrated model for variables considered important for success in NPD and the moderating effect of intense competition.

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.

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