scholarly journals Global value chain breadth and firm productivity: the enhancing effect of Industry 4.0

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marco Opazo-Basáez ◽  
Ferran Vendrell-Herrero ◽  
Oscar F. Bustinza ◽  
Josip Marić

PurposeGlobal value chains (GVC) incorporate internationally fragmented sources of knowledge so as to increase global competitiveness and performance. This paper sheds light on the role of Industry 4.0 technological capabilities in facilitating knowledge access from international linkages and improving firm productivity.Design/methodology/approachDrawing on organizational learning research, the present study argues that the relationship between GVC breadth, analyzed in respect to the geographical fragmentation of production facilities and productivity follows an inverted U-shaped pattern that can be explained by the interplay between external knowledge access and the coordination costs associated with GVC breadth. We test our predictions using a purpose-built survey that was carried out among a sample of 426 Spanish manufacturing firms.FindingsOur results indicate that organizations adhering to a traditional manufacturing system are able to benefit from fewer transnational relationships (concretely 11 foreign facilities) in the search for productivity improvements. This can be largely attributed to the marginal value of the knowledge accessed and the costs of coordinating international counterparts' production and knowledge transfer. However, our study reveals that the adoption of Industry 4.0 technologies has the potential to broaden optimal GVC breadth, in terms of the number of linkages to interrelate with (concretely 131 foreign facilities) so as to obtain productivity gains while mitigating the complexities associated with coordination.Originality/valueThe study unveils that Industry 4.0 technologies enable management of broader GVC breadth, facilitating knowledge access and counteracting coordination costs from international counterparts.

2019 ◽  
Vol 37 (1) ◽  
pp. 1-5 ◽  
Author(s):  
Abid Hussain

Purpose Industry 4.0 is a term for the so-called Fourth Industrial revolutions. It is the technological integration of cyber-physical systems (CPS) in the process of production. CPS enables internet-based process networking with all participants in the process of value creation. The industrial revolution is actually changing how we live, work and communicate. Many trades have highly been affected by 4IR, libraries are one of them. The libraries of twenty-first century are shifting their paradigms from traditional setup to modern information networking. As people and machines are connecting to each other at enormous speed, artificial intelligence, mobile computing, machine learning and automation of every trade have become a need of the day. Automation and artificial intelligence are change agents in 4IR that will make certain groups of employees redundant, replacing them with new workers with the needed skills or with machines that do the job cheaper. This paper aims to shed light on how the 4IR will “shape the future of education, gender, work and library services”. The purpose of this paper is to highlight the challenges being faced by the library and librarians in the age of Industrial 4.0 revolution in contemporary society. The purpose of this study is to review the past literature on Industrial Revolutions 4.0 in education and interlink them with Library services. Design/methodology/approach The current study performs a systematic and content-centric review of literature relevant to library services. The literature of this study is based on a six-stage approach to identify the design principles and technology trends of 4IR in education and Library services. Findings Industry 4.0 Revolution is the current trend of revolutionary technology, which has affected many services in this age of globalization. Similar, Library services have highly been affected by 4IR. An effort has been made to highlight the vari-ous challenges being faced by libraries and librarians in this age of information. Some solutions have been presented to the library professionals to overcome this technology to boost its services up to the entire satisfaction of the patrons. Research limitations/implications The strategic approach in this study can serve the academicians and practitioners in the field of librarianship as a stepping stone to develop a successful transition from traditional manufacturing into the industry 4.0. Originality/value The study is among the first to identify the challenges being faced by libraries and librarians in this age of Industrial revolutions.


2011 ◽  
Vol 1 (1) ◽  
pp. 1-10
Author(s):  
Brian Vejrum Waehrens ◽  
Dmitrij Slepniov

Subject area Operations strategy/global operations/value chain. Study level/applicability BA/Master level – the case can be applied to support operations strategy discussions related to the link between context, configuration and capabilities, and particularly to discuss internationalization strategy and global operations. Case overview The case examines how Gabriel, a Danish textile company, transformed itself from being a traditional textile manufacturer to becoming an innovative virtual servi-manufacturer. The case covers the main milestones in Gabriel's recent history, explores the main reasons for the transformation that started in the late 1990s and studies how this transformation towards becoming a virtual servi-manufacturer was dealt with. The case closes with the sections examining the role of innovation activities in the newly transformed company. Expected learning outcomes The case is expected to build an understanding of the organisational and operational implications of the journey towards the virtual production company. While the case is broad in its scope, it provides an opportunity to go into details on a number of interrelated topics: operations strategy; global production networks; communication and coordination; interdependencies; and outsourcing and offshoring. The story of Gabriel illustrates a highly successful globalization journey and its underlying dynamics. The case highlights how the operations configuration and the relationships between key parties do not stay constant over time. They rather shift and adapt to internal and external stimuli. The case explores these stimuli in retrospect and describes how the company attempts to reconcile market requirements with its operations configurations and capabilities. Supplementary materials Teaching note.


2019 ◽  
Vol 31 (5) ◽  
pp. 837-862 ◽  
Author(s):  
Katarzyna Nosalska ◽  
Zbigniew Michał Piątek ◽  
Grzegorz Mazurek ◽  
Robert Rządca

Purpose The purpose of this paper is to introduce coherent Industry 4.0 definition via a rigorous analysis framework, and provide a holistic view of technological, organizational and other key aspects (variables) of Industry 4.0 along with the identification of interdependencies that co-occur between them. Design/methodology/approach The study conducts a systematic literature review using Preferred Reporting Items for Systematic Review and Meta-Analysis methodology, and includes 675 papers analyzed both quantitatively and qualitatively. The former utilizes TIBCO Statistica. Furthermore, to define Industry 4.0, the authors reviewed 52 publications. Findings Industry 4.0 is a multidimensional system of value creation that includes 42 groups of terms in management, organizational and business-related variables, 30 technological and manufacturing-related variables – classified into seven categories – and several interdependencies that co-occur between them. Practical implications The analyses’ outcomes are of high importance both for academia and industry practitioners, as the findings elucidate the meaning of Industry 4.0 and may be used as the basis of future research in management, production management, industrial organizations and other Industry 4.0-related disciplines. Regarding industrial companies, the publication serves as a compendium, and should support industrial businesses in the transition from traditional manufacturing into the Industry 4.0 era. Originality/value This work’s novelty and value is threefold: first, the paper introduces an Industry 4.0 definition framework based on the most popular publications in the field. Second, the paper identifies and presents Industry 4.0’s common technologies and organizational variables via a systematic and current literature review. Finally, the paper extends the ongoing discourse on Industry 4.0. For the first time in this discipline, interdependences between identified Industry 4.0 variables are presented and discussed.


Author(s):  
Federico Stezano ◽  
Ruben Oliver Espinoza

Purpose This paper aims to provide empirical evidence regarding the relationship between different capabilities and innovation performances in the biotechnology sector, in the case of Mexico. Design/methodology/approach Given the aforementioned objective, this paper constructs different indicators on types of capabilities and innovative performances and, based on them, performs an econometric analysis based on a logit model. The work assumes the central assumptions of the firm's evolutionary theory and, in this sense, seeks to provide quantitative empirical evidence that explains the way in which the construction of different types of capacities determines the innovation results of Mexican firms in the biotechnology sector. Findings Corroborating the previous empirical evidence in analysis of firm’s capabilities in the biotechnology sector, this work empirically states that productive, absorption, technological and innovative capabilities positively influence the innovative performance of Mexican biotechnology firms. Originality/value This work examines a central theme linked to the current analysis of innovation and knowledge processes: the relationship between the organizational capacities of firms in the biotechnology sector and their innovative performance. Through a detailed analysis based on a national survey of Mexican biotechnology firms, this work underlines the importance of generating a new type of reflection on linkage among capabilities, innovation, paradigms and trajectories, technological opportunities, relationship dynamics among actors and modes of insertion into the biotechnology value chain.


Author(s):  
Andrea Gelei ◽  
Magdolna Sass

Purpose This paper aims to trace the performance consequences of within-lead firm reconfigurations of global value chains with respect to business performance and upgrading. Design/methodology/approach The study is based on two detailed company case studies which are analysed in an organizational design approach. Findings Lead firms systematically separate and internalize high value-added activities in otherwise low value-added processes leading to constant reconfigurations and reorganizations of the production processes in global value chains. The study finds that similar reconfigurations may trigger different changes and changes and performance consequences may differ considerably according to the level of analysis. The two cases help to understand the specific roles of the outsourcing and offshoring decisions in shaping actual global value chain structures. Originality/value The consequences of within-lead firm reconfigurations are rarely analysed in the literature.


2019 ◽  
Vol 27 (3/4) ◽  
pp. 239-244 ◽  
Author(s):  
Nadezhda K. Savelyeva ◽  
Andrey V. Kuklin ◽  
Irina P. Lapteva ◽  
Natalia V. Malysheva

Purpose The purpose of this paper is to substantiate the basic role and to develop recommendations for increasing the attractiveness of a regional market of educational services in modern Russia for provision of its global competitiveness in the conditions of industry 4.0. Design/methodology/approach The authors use the method of regression analysis for evaluating the influence of the indicators of investment attractiveness of a regional market of educational services – volume of investments into fixed capital in the sphere of education and state expenditures for financing of education – on the indicator of global competitiveness of this market in the conditions of industry 4.0 – number of foreign students – by the example of regions of the Volga Federal District of the Russian Federation. The empirical basis of the research is statistical materials of the Federal State Statistics Service of the Russian Federation for late 2018 and early 2019. Findings It is proved that investment attractiveness of a regional market of educational services is the basis of its global competitiveness in the conditions of industry 4.0. A barrier on the path of full-scale digital modernization of the system of higher education in modern Russia is the absence of private venture investments, which shows low investment attractiveness of a regional market of educational services. Originality/value It is substantiated that the causes of emergence of the determined barriers have the institutional nature and could be eliminated with the help of the complex of the recommended measures that are connected to usage of the mechanism of public–private partnership for financing of digital modernization education, flexible regulation of investment activities of digital universities, which is selected for each specific project, and coordination of the investment activities of universities at the regional level and creation of a specialized digital portal. Practical implementation of the offered measures will allow achieving significant growth of global competitiveness of a regional market of educational services of modern Russia in the conditions of industry 4.0.


2014 ◽  
Vol 26 (6) ◽  
pp. 658-666 ◽  
Author(s):  
J. Richard Horne

Purpose – The purpose of this paper is to propose the adaptation of Michael Porter's Value Chain as part of a total value and performance-based framework to help identify and prioritize process improvement projects. Design/methodology/approach – This paper developed a framework and then applied it by using a notional company's performance numbers. Findings – The proposed framework can be easily applied to a real-world business setting by using the methodology proposed. The author used basic Microsoft Excel skills to perform this work. Practical implications – This paper's’ strength is that it provides business managers and quality improvement practitioners a viable and straight forward method to identify and prioritize their improvement efforts. Originality/value – This paper is original in its concept. It takes and established framework and it applies it to a process improvement application.


2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rajesh Kumar Singh ◽  
Pravin Kumar ◽  
Mahesh Chand

Purpose Today, most of the manufacturing systems are changing very fast in terms of the adoption of new technologies. New technologies being implemented are Internet of Things, cyber physical systems, cloud computing, Big Data analytics and information and communication technologies. Most of the organizations in the value chain are implementing these technologies at the individual level rather than across the whole supply chain. It makes the supply chain less coordinated and causes suboptimal utilization of resources. For efficient and optimal use of modern technologies, supply chains should be highly coordinated. The purpose of this paper is to illustrate an approach for determining the index to quantify coordination in the supply chain. Design/methodology/approach From the literature review, total 32 factors have been identified. These factors are further clubbed into six clusters for evaluation of the coordination index. The graph theoretic approach has been used for evaluating the coordination index of a supply chain of an Indian organization. Findings This study has illustrated a comprehensive approach to quantify coordination of a supply chains for effective benchmarking of the supply chain performance in the Industry 4.0 era. Presently, it is observed that top management is giving more focus on organizational issues such as lean organization structure, organization culture and responsiveness factors for improving coordination in the supply chain rather than on Industry 4.0 technologies. Originality/value This framework can also be used for comparison, ranking and analysis of coordination issues in different supply chains in the era of Industry 4.0. Organizations can use this approach for benchmarking purpose also to improve different supply chain processes for meeting dynamic market requirements.


2017 ◽  
Vol 24 (3) ◽  
pp. 635-650 ◽  
Author(s):  
Ravinder Kumar ◽  
Rajesh Kumar Singh

Purpose Globalization and liberalization of the world economy have leveled the field for all competitors across the globe. To face global competition successfully, SMEs have to break their isolation in the value chain. To overcome the dynamic challenges of the market, supply chain management can be an important tool for SMEs. The purpose of this paper is to synthesize different issues related to the coordination and responsiveness of supply chain management in SMEs, through a review of the literature. Design/methodology/approach In all, 116 research papers, mainly from referred international journals, are reviewed to identify the thrust areas of research. On the basis of the review, gaps are identified and a research agenda is proposed. Findings It is observed from the review that SMEs have not been very proactive in implementing supply chain management. These organizations face a lot of problems in coordinating their operations with other members of the supply chain. They are localized in functioning. On export fronts SMEs face many constraints due to lack of resources and poor innovative capabilities. To face the challenges of open global market, SMEs have to manage their problems and supply chain risks effectively. Research gaps are identified in different areas of the supply chain such as coordination and responsiveness issues, service quality issues, and performance benchmarking for future directions of research. Originality/value This paper explores the major areas for research on coordination and responsiveness of SME supply chains. The findings of the paper will be highly useful for the researchers to decide the direction of their research.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sameh M Saad ◽  
Ramin Bahadori ◽  
Hamidreza Jafarnejad

PurposeThis study proposes the Smart SME Technology Readiness Assessment (SSTRA) methodology which aims to enable practitioners to assess the SMEs Industry 4.0 technology readiness throughout the end-to-end engineering across the entire value chain; the smart product design phase is the focus in this paper.Design/methodology/approachThe proposed SSTRA utilises the analytic hierarchy process to prioritise smart SME requirements, a graphical interface which tracks technologies' benchmarks under Industry 4.0 Technology Readiness Levels (TRLs); a mathematical model used to determine the technology readiness and visual representation to understand the relative readiness of each smart main area. The validity of the SSTRA is confirmed by testing it in a real industrial environment. In addition, the conceptual model for Smart product design development is proposed and validated.FindingsThe proposed SSTRA offers decision-makers the facility to identify requirements and rank them to reflect the current priorities of the enterprise. It allows SMEs to assess their current capabilities in a range of technologies of high relevance to the Industry 4.0 area. The SSTRA assembles a readiness profile allowing decision-makers to not only perceive the overall score of technology readiness but also the distribution of technology readiness across the main smart areas. It helps to visualise strengths and weaknesses; whilst emphasising the fundamental gaps that require serious action to assist the program with a well-balanced effort towards a successful transition to Industry 4.0.Originality/valueThe SSTRA provides a step-by-step approach for decision-making based on data collection, analysis, visualisation and documentation. Hence, it greatly mitigates the risk of further Industry 4.0 technology investment and implementation.


Sign in / Sign up

Export Citation Format

Share Document