A Discovery of Multiple Levels of Open Innovation in Understanding the Economic Sustainability. A Case Study in the Manufacturing Industry

The aim of this paper is twofold: firstly, investigate the theory of governance and open innovation by adding the process of value creation and value capture; secondly, to discuss the potential link between open innovation and economic sustainability. With the current emphasis of the literature being on either the value creation or value capture processes, the phenomenon of open innovation is only partially understood. To help broaden this understanding, we conducted an in-depth case study of the processes behind the transformation of governance structures at Iran Khodro Company (IKCO), which led to the emergence of both value creation and capture processes. A multi project analysis (from 1994 to 2012) has point out that IKCO have created and developed a formal value creation and capture processes from the part level through to the architectural level, allowing a gradual openness at those levels and at the same time ensuring a greater economic sustainability of the IKCO business. These findings reveal the existence of four unique levels of open innovation in product development architecture. Practical implications are also provided relating the impact that each of these levels can have on the economic sustainable model of the firms in the manufacturing sector.

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Talenthouse India: crowdsourcing the Indian national anthem

Journal of Business Strategy ◽

10.1108/jbs-06-2015-0064 ◽

2016 ◽

Vol 37 (4) ◽

pp. 12-23

Author(s):

Tulsi Jayakumar

Keyword(s):

Value Creation ◽

Open Innovation ◽

High Tech ◽

Value Capture ◽

Content Type ◽

National Anthem ◽

Study Approach ◽

Advanced Economies ◽

Client Firm

Purpose This paper aims to understand the process of value creation and value capture through open innovation strategies such as crowdsourcing in emerging economies (EEs) like India. The paper seeks to understand that crowdsourcing strategies offer both potential as well as challenges to value creation and capture in EEs. Design/methodology/approach The paper follows a case study approach. Building on interviews with company officials, the paper looks at the process of value creation and value capture by Talenthouse India through its unique “My Nation My Anthem” (MNMA) initiative. Findings With growing internet penetration and the presence of a demographic dividend, crowdsourcing presents high potential in EEs like India. EE firms may strategize to use the creativity and ideas of “crowds” to drive value creation and value capture. However, understanding the limits of such strategies, in particular those relating to the crowds (their composition, access to them and their motivators) and the access to technology, is important. The result of the MNMA initiative was a 52-second crowdsourced national anthem that generated sufficient value for the crowdsourcing intermediary (Talenthouse), the client firm (PVR) and the entire ecosystem. Originality/value The significance of open innovation models has been demonstrated in settings involving high-tech industries, producing high-value goods, in advanced economies. The paper finds the applicability of such models to low-tech, less mature industries, involving experience goods in EEs like India.

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Governing Collaborative Value Creation in the Context of Grand Challenges: A Case Study of a Cross-Sectoral Collaboration in the Textile Industry

Business & Society ◽

10.1177/0007650320930657 ◽

2020 ◽

pp. 000765032093065

Author(s):

Lori DiVito ◽

Jakomijn van Wijk ◽

Ingrid Wakkee

Keyword(s):

Value Creation ◽

Textile Industry ◽

Process Model ◽

Single Case ◽

Governance Mechanisms ◽

Value Capture ◽

Value Creation And Capture ◽

Nuanced Understanding ◽

Private Value

The aim of this study is to understand how governance mechanisms in cross-sector collaborations (CSCs) for sustainability affect value creation and capture and subsequently the survival of this organizational form. Drawing on a longitudinal, participatory, single-case study of collaborative action in the textile industry, we identify three governance mechanisms—safeguarding, bundling and connecting—that coevolve with the rising and waning of collaborative tensions and the shifting levels of action in the CSC we studied. These mechanisms aided value creation and helped facilitate private value capture. We integrate these insights into a process model that visualizes the interplay between governance mechanisms of tensions and systems of value creation and capture in CSCs for sustainability. Our study contributes to the cross-sector collaboration literature by providing a dynamic and nuanced understanding of how governance mechanisms influence outcomes in CSCs for sustainability. We also add to the business model for sustainability literature by theorizing the value creation and capture system of collaborative rather than individual organizations. Our findings have important implications for policymakers who fund collaborative organizations and practitioners who manage or participate in them.

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Implementation of lean in IT SME company: an Italian case

International Journal of Lean Six Sigma ◽

10.1108/ijlss-05-2020-0067 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Marco Torri ◽

Kaustav Kundu ◽

Stefano Frecassetti ◽

Matteo Rossini

Keyword(s):

Manufacturing Industry ◽

Service Sector ◽

Manufacturing Sector ◽

Single Case ◽

Value Added ◽

Lean Implementation ◽

Content Type ◽

Italian Case ◽

Lean Practices

Purpose In spite of huge advancement of Lean in the manufacturing sector, its advantage in the service sector is not fully investigated. The purpose of this paper is to cover this gap in particular for the information technology (IT) sector through the implementation of the Lean philosophy in a small- and medium-sized enterprise (SME), operating in the IT sector. Design/methodology/approach A case study is conducted and following the A3 model, Lean is deployed in the case company. Data were collected through on-site interviews, waste sources were identified and then countermeasures for their reduction were proposed and adopted. Findings This study reveals that the implementation of the Lean practices in an SME operating in the IT sector offers good operative and financial results, thanks to the higher productivity obtained through the reduction of non-value-added activities. Research limitations/implications This paper reports a single case study, not enough to generalize the results. Moreover, more Lean tools and practices should be tested in IT companies to assess their effectiveness. Practical implications This paper increments the knowledge base for the application of Lean and A3 model outside the manufacturing industry. This paper should assist practitioners and consultants who have the desire to understand a better way of Lean implementation in fast-growing IT industry and in SME. Originality/value Research on Lean implementation in an SME company and in IT sector is scarce. This study aims to assess the efficiency of the adoption of Lean practices following the A3 model. The results could be highly valuable for similar companies (dimension or sector), especially those that are facing transition situations in terms of size and at the same time want to improve their operations performance, efficiency and avoid waste.

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Ressourceneffizienz durch Digitalisierung*/Resource efficiency through digitisation. Potentials for SMEs in the manufacturing industry

wt Werkstattstechnik online ◽

10.37544/1436-4980-2018-05-45 ◽

2018 ◽

Vol 108 (05) ◽

pp. 319-324

Author(s):

I. Bogdanov ◽

A. Nuffer ◽

A. Sauer

Keyword(s):

Manufacturing Industry ◽

State Of The Art ◽

Manufacturing Sector ◽

Resource Efficiency ◽

Digitale Transformation ◽

Case Study Analysis ◽

Current State ◽

Stand Der Technik ◽

A Current

Der vorliegende Beitrag behandelt den Themenkomplex Ressourcen-effizienz und digitale Transformation im verarbeitenden Gewerbe sowie die dabei entstehenden Wechselwirkungen. Neben dem aktuellen Stand der Technik werden die im Rahmen einer aktuellen Studie durchgeführte Fallbeispielanalyse und die entwickelte Methodik zur Ermittlung der Ressourceneffizienzpotenziale vorgestellt. Diese Potenziale und die eingesetzten digitalen Maßnahmen sind zentrale Bausteine des vorliegenden Beitrags.   This article deals with the topic complex of resource efficiency and digital transformation in the manufacturing sector as well as the resulting interactions. In addition to the current state of the art and perspectives, the case study analysis carried out as part of a current study, as well as the developed method for establishing the resource efficiency potentials will be presented. The resultant potential and the digital measures are central components of this article.

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The effect of business model innovation on organization performance

Management Science Letters ◽

10.5267/j.msl.2020.12.026 ◽

2021 ◽

pp. 1481-1488 ◽

Cited By ~ 1

Author(s):

Amineh A. Khaddam ◽

Hani J. Irtaimeh ◽

Ahmad Rajaa Salameh Al-Batayneh ◽

Suliman Raja Salameh Al-Batayneh

Keyword(s):

Business Model ◽

Value Creation ◽

Business Model Innovation ◽

Arab Countries ◽

Organization Performance ◽

Company Performance ◽

Value Proposition ◽

Value Capture ◽

The Impact ◽

Measures Of Performance

The aim of the study is to investigate the impact of business model innovation (BMI) on firm performance. The sample of the study consisted of 120 managers from Alban Al-youm Company in Jordan, a leading dairy company. Data were collected using a questionnaire administered to managers. Eighty-seven questionnaires were retrieved valid for the purpose of data analysis. BMI was measured using three components: value creation, value proposition and value capture innovations while company performance was assessed via self-rated questions about operational measures of performance. The results accepted the hypotheses that all dimensions of BMI had significant effects on company performance. That being so, the study contributed to the literature on BMI on company performance in the absence of such studies that use samples for Arab countries, particularly, from Jordan in one of the most vital industries, which is a dairy industry.

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Nanotechnology, Long Waves, and Future of Manufacturing Industry

Foreign Direct Investments ◽

10.4018/978-1-7998-2448-0.ch092 ◽

2020 ◽

pp. 2053-2080

Author(s):

Cem Okan Tuncel ◽

Ayda Polat

Keyword(s):

Manufacturing Industry ◽

Wave Theory ◽

Comparative Case Study ◽

Industrialized Countries ◽

Capitalist Development ◽

Mena Countries ◽

Newly Industrialized Countries ◽

Long Wave ◽

The Impact

This study concerns the long wave theory of capitalist development with an aim to discuss and analyze the impact of nanotechnology on manufacturing industry. Long wave theory was asserted by Russian economist Kondratieff and it states the capitalist development with subsequent cycles which last 40 to 60 years each. The theory of Kondratieff was also contributed by other scholars as Schumpeter, Freeman, and Perez. Our research attempts to review how nanotechnology contributes economic growth, and how it changes the structure of manufacturing industry at the eve of the sixth Kondratieff wave. This structure was examined by using comparative case study of European Union, East Asian Newly Industrialized Countries and Middle East and North African (MENA) countries.

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Lean Six Sigma: a clinical treatment for the recovery of Indian manufacturing sector from the after-effects of coronavirus

World Journal of Science Technology and Sustainable Development ◽

10.1108/wjstsd-03-2020-0025 ◽

2020 ◽

Vol 17 (3) ◽

pp. 311-322 ◽

Cited By ~ 1

Author(s):

Harsimran Singh Sodhi

Keyword(s):

Six Sigma ◽

Manufacturing Industry ◽

Manufacturing Sector ◽

Lean Six Sigma ◽

Clinical Treatment ◽

Content Type ◽

After Effects ◽

The World ◽

Tools And Techniques ◽

The Impact

PurposeManufacturing industry is quite badly hit due to the coronavirus. Manufacturing has been stopped in every country. The present study will provide assistance to the practitioners to recover manufacturing sector from the after-effects of coronavirus.Design/methodology/approachA thorough review of the recent articles published in the newspaper and web has been done to make a viewpoint on the global industrial impact due to epidemic corona. Reports of WHO, IMF, World Bank, RBI and so forth are also reviewed. Further, Lean Six Sigma has been suggested which can be implemented to recover manufacturing industry from the ill effects of corona.FindingsIn present study the problem causd in the manufacturing sector due to corona virus has been identified and a clinical treatment for the same has been proposed by using the tools and techniques of Lean Six Sigma.Originality/valueThe impact of coronavirus has become a huge issue not only for the physical health of human beings but also for the economic health of most of the countries in the world, as it is pushing the world economy toward huge economic depression. Therefore, it becomes the moral responsibility of industrial experts to suggest the tools and techniques to the manufacturing industry for faster recovery.

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Value of IT in supply chain planning

Journal of Enterprise Information Management ◽

10.1108/jeim-07-2013-0053 ◽

2015 ◽

Vol 28 (1) ◽

pp. 77-92 ◽

Cited By ~ 11

Author(s):

Christoph Fuchs ◽

Andreas Otto

Keyword(s):

Supply Chain ◽

Value Creation ◽

Manufacturing Industry ◽

Continuous Production ◽

Future Research ◽

Supply Chain Planning ◽

Production Flow ◽

Content Type ◽

Value Of It ◽

The Impact

Purpose – The purpose of this paper is to understand value creation of information technology (IT) in supply chain planning (SCP). The impact of different IT components in SCP remains unclear and requires some thorough research. In addition, an analysis of the optimization dimension provides insights into intra-functional, inter-functional and cross-company optimization. Design/methodology/approach – A survey was conducted among German companies using a continuous production flow. In total, 47 of 193 contacted companies completed the web survey, which corresponds to a response rate of 24 percent. Findings – IT functionality for SCP is widely spread. The value of IT functionality in SCP is tremendous. Implementations in demand fulfillment and available-to-promise (ATP) have the biggest value creation potential. Supply chain performance indicators can be improved by investments in certain functional domains. Packaged standard software is widely distributed and should be considered as the first option. IT functionality to improve intra-functional processes is significantly more often implemented than IT functionality for inter-functional or cross-company process optimization although the realized value is comparable. Research limitations/implications – Respondents of the survey are limited to the German continuous production flow industry. Future research could be interesting in the discrete manufacturing industry. Originality/value – The paper provides empirical insights into the value of IT in SCP where data are less available than in the ERP context. Furthermore, this paper provides first insights into the optimization dimension whether processes are optimized intra-functional, inter-functional or cross-company.

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VALUE CREATION AND CAPTURE IN BUYER-SUPPLIER RELATIONSHIPS: A NEW PERSPECTIVE

Revista de Administração de Empresas ◽

10.1590/s0034-759020160503 ◽

2016 ◽

Vol 56 (5) ◽

pp. 474-488 ◽

Cited By ~ 4

Author(s):

FÁBIO CAMPOS TESCARI ◽

LUIZ ARTUR LEDUR BRITO

Keyword(s):

Value Creation ◽

Intrinsic Value ◽

Research Paper ◽

Value Capture ◽

Supplier Relationships ◽

New Model ◽

Relational Value ◽

Value Creation And Capture ◽

New Perspective ◽

The Relationship

ABSTRACT This research paper develops and tests a new model for value creation and capture in buyer-supplier relationships. In addition to including both value creation and capture in the same model, value creation is unraveled by the identification of its sources, both intrinsic and relational. Intrinsic value is the set of benefits derived from resources belonging to one party that can be captured by another party if there is a relationship between them, even if this relationship is non-collaborative. Relational value encompasses the mutual benefits that are generated as the collaboration between buyer and supplier increases. The model was tested using a survey of 127 dyads (buyer and supplier). The results indicated that both sides benefit from the total value created by the relationship, but the degree of value capture varies. The value perceived by the supplier is greater than that perceived by the buyer, which consequently encourages the former to boost its efforts even further to ensure that the relationship continues.

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