Are smart contracts too smart for Supply Chain 4.0? A blockchain framework to mitigate challenges

PurposeSmart contracts are self-executing computer programmes that have the potential to be used in several applications instead of traditional written contracts. With the recent rise of smart systems (e.g. Internet of things) and digital platforms (e.g. blockchain), smart contracts are gaining high interest in both business and academia. In this work, a framework for smart contracts was proposed with using reputation as the system currency, and conducts currency mining through fulfilling the physical commitments that are agreed upon.Design/methodology/approachA game theory model is developed to represent the proposed system, and then a system dynamics simulator is used to check the response of the blockchain with different sizes.FindingsThe numerical results showed that the proposed system could identify the takeover attacks and protect the blockchain from being controlled by an outsider. Another important finding is that careful setting of the maximum currency amount can improve the scalability of the blockchain and prevent the currency inflation.Research limitations/implicationsThis work is proposed as a conceptual framework for supply chain 4.0. Future work will be dedicated to implement and experiment the proposed framework for other characteristics that may be encountered in the context of supply chain 4.0, such as different suppliers' tiers, different customer typologies and smart logistics applications, which may reveal other challenges and provide additional interesting insights.Practical implicationsBy using the proposed framework, smart contracts and blockchains can be implemented to handle many issues in the context of operations and supply chain 4.0, especially in times of turbulence such as the COVID-19 global pandemic crisis.Originality/valueThis work emphasizes that smart contracts are not too smart to be applied in the context of supply chain 4.0. The proposed framework of smart contracts is expected to serve supply chain 4.0 by automating the knowledge work and enabling scenario planning through the game theory model. It will also improve online transparency and order processing in real-time through secured multitier connectivity. This can be applied in global supply chain functions backed with digitization, notably during the time of the pandemic, in which e-commerce and online shopping have changed the rules of the game.

Factors influencing Industry 4.0 adoption

PurposeThe digital transformation towards Industry 4.0 (I4.0) has become imperative for manufacturers, as it makes them more flexible, agile and responsive to customers. This study aims to identify the factors influencing the manufacturing firms’ decision to adopt I4.0 and develop a triadic conceptual model that explains this phenomenon.Design/methodology/approachThis study used a qualitative exploratory study design based on multiple case studies (n = 15) from the manufacturing industry in Malaysia by conducting face-to-face interviews. The data were analysed using NVivo. The conceptual model was developed based on grounded theory and deductive thematic analysis.FindingsResults demonstrate that driving, facilitating and impeding factors play influential roles in a firms’ decision-making to adopt I4.0. The major driving factors identified are expected benefits, market opportunities, labour problem, customer requirements, competition and quality image. Furthermore, resources, skills and support are identified as facilitating factors and getting the right people, lack of funding, lack of knowledge, technical challenges, training the operators and changing the mindset of operators to accept new digital technologies are identified as impeding factors.Research limitations/implicationsDue to its qualitative design and limited sample size, the findings of this study need to be supplemented by quantitative studies for enhanced generalizability of the proposed model.Practical implicationsKnowledge of the I4.0 decision factors identified would help manufacturers in their decision to invest in I4.0, as they can be applied to balancing advantages and disadvantages, understanding benefits, identifying required skills and support and which challenges to expect. For policymakers, our findings identify important aspects of the ecosystem in need of improvement and how manufacturers can be motivated to adopt I4.0.Originality/valueThis study lays the theoretical groundwork for an alternative approach for conceptualizing I4.0 adoption beyond UTAUT (Unified Theory of Acceptance and Use of Technology). Integrating positive and negative factors enriches the understanding of decision-making factors for I4.0 adoption.

Managing routines and keeping on track: technology, human cognition and performativity in SMEs

PurposeRoutine dynamics provide a robust theoretical framework to explore a wide range of organizational phenomena. However, the study of routines and the effect of technology on its performativity in small and medium-sized enterprises (SMEs) still lack attention by researchers. This paper aims to analyze how the balance between process technology and human cognition affects routines' performativity in SMEs.Design/methodology/approachIt was conducted a multicase study composed of Brazilian SMEs in the bakery industry. Data collection took place through interviews with managers and employees, observation of operational processes and document analysis. Thematic content analysis was adopted for categorization and data analysis.FindingsThe authors’ findings allow inferring there is no primacy of a more automated or artisanal production process to achieve competitiveness, which breaks the paradigm of the superior performance of automated production over the artisanal process that haunts SMEs. Though technology increases production efficiency, the artisanal approach can be valuable at promoting a company by commercially using this know-how to explore other business models appreciated by the public.Practical implicationsThe authors’ proposals became relevant in a practical perspective once it works as a parameter for SME managers' decision-making about new investments in production resources and to foster public policies and other actions developed by support services for small businesses.Originality/valueThis study expands the frontiers in routines literature on SMEs, which lacks deepening. From this, SME managers can intensify actions to optimize process routines performativity through technologies or human cognition to keep the routines on track.

Opening manufacturing flexibility's black box: the unexplored role of internal flexibility

PurposeThe purpose of this paper is to empirically test a research model exploring the complex links between internal and external manufacturing flexibility capabilities (IF and EF) and competitive advantage (CA).Design/methodology/approachA survey approach with responses from 266 Spanish manufacturing firms from different industries was used. Structural equation modelling and SPSS macro PROCESS were used to test the hypotheses.FindingsManufacturing flexibility (MF) is a dual-dimensional concept composed by IF and EF, which are complementary and hierarchical in its development. Contrary to previous assumptions, IF does not always express its final competitive effect through EF, which only partially mediates the IF–CA relationship. Thus, IF and EF independently can positively enhance a firm's CA, being the direct effect of the IF being stronger than EF.Practical implicationsThis study offers practical insights supporting a guide for prioritising flexibility capabilities through the holistic MF implementation, thus assisting managers wishing to formulate MF strategies seeking efficiency and customer value advantages relative to competitors.Originality/valueThe main novelty of this work is to explore for the first time the direct and indirect role of IF on CA, enlarging the assumptions of the flexibility funnel framework (FFF) and the strategic view of MF. The study is also unique due to both the depth and breadth of the investigation of the basis of the use of resource-based theory (RBT) and by employing a recent and comprehensive MF conceptual systematisation to guide the measurement approach.

Assessing Industry 4.0 readiness in manufacturing: a self-diagnostic framework and an illustrative case study

PurposeThe purpose of this paper is to present an Industry 4.0 Readiness Assessment Framework (I4.0RAF) and demonstrate its applicability and practical relevance through a case study of a large manufacturing firm in an emerging economy.Design/methodology/approachThe research firstly involved a synthesis of recent literature for the identification of important determinants, and their constituent criteria, for assessing the readiness of a manufacturing firm to transition to an Industry 4.0 setting and structuring them into a readiness assessment framework that can be used as a self-diagnostic tool. The framework was illustrated through a case study. The empirical findings of readiness assessment are validated using semi-structured interviews of senior management of the organization.FindingsThe proposed I4.0RAF was found to be a practically applicable self-diagnostic tool that can be used to assess a firm's readiness to transition to an Industry 4.0 setting with respect to eight important determinants. Cross-functional participation in the assessment helped the organization to determine priorities and interdependencies among the determinants.Research limitations/implicationsThe determinants and their constituent criteria can be further streamlined using inputs from practitioners, consultants and academics.Practical implicationsThe findings demonstrate the interdependencies between the determinants, help to delineate interventions that can lead to synergistic outcomes and enabls planning to achieve higher levels of Industry 4.0 maturity.Originality/valueA self-diagnostic tool as a basis for an informed discussion on transitioning to an Industry 4.0 setting is presented and illustrated through a case study in an emerging economy.

A note on bi-objective optimization for sustainable supply chain network design in omnichannel

PurposeThis paper aims to correct the existing mixed integer programming (MIP) model proposed by Yadav et al. (2019) [“Bi-objective optimization for sustainable supply chain network design in omnichannel.”, Journal of Manufacturing Technology Management, Vol. 30 No. 6, pp. 972–986].Design/methodology/approachThis paper first presents a counterexample to show that the existing MIP model is incorrect and then proposes an improved mixed integer linear programming (MILP) model for the considered problem. Last, a numerical experiment is conducted to test our improved MILP model.FindingsThis paper demonstrates that the formulations of the facility capacity constraints and the product flow balance constraints in the existing MIP model are incorrect and incomplete. Due to this reason, infeasible solutions could be identified as feasible ones by the existing MIP model. Hence, the optimal solution obtained with the existing MIP model could be infeasible. A counter-example is used to verify our observations. Computational results verify the effectiveness of our improved MILP model.Originality/valueThis paper gives a complete and correct formulation of the facility capacity constraints and the product flow balance constraints, and conducts other improvements on the existing MIP model. The improved MILP model can be easily implemented and would help companies to have more effective distribution networks under the omnichannel environment.

Achieving green product and process innovation through green leadership and creative engagement in manufacturing

PurposeThe aims of this study were three-fold: to determine the impact of green transformational leadership on creative process engagement, green product innovation and green process innovation; to examine the association of creative process engagement with green product and process innovation and to identify the mediating influence of creative process engagement in the association between green transformational leadership and green process and product innovation.Design/methodology/approachData was collected through a survey questionnaire from 291 middle- and lower-level managers and employees through simple random sampling in four high-tech manufacturing industries situated in Beijing, Shanghai and Shenzhen in China. We examined the data through structural equation modeling using partial least squares to test the study hypotheses.FindingsThe findings unveiled that green transformational leadership and creative process engagement positively influence green product innovation and green process innovation. Similarly, green transformational leadership is positively linked with creative process engagement. The findings further revealed that creative process engagement mediates the impact of green transformational leadership on green process and product innovation. Hence, our findings provide strong support for the role of green transformational leadership and creative process engagement in improving green process and product innovation.Research limitations/implicationsOur sample is limited to China and collected from high-tech manufacturing industries.Practical implicationsDrawing on the componential theory of creativity, the authors suggest that organizational leaders, specifically those who practice green transformational leadership, should increase creative process engagement among subordinates, as it is a crucial intangible resource for green process and product innovation.Social implicationsWe suggest that a combination of green transformational leadership and creative process engagement improves green process and product innovation as well as the environmental performance of a business by eliminating all forms of hazardous material and waste.Originality/valueThis work is one of the earliest empirical studies to evaluate the influence of green transformational leadership on fostering green product and process innovation and the mediating impact of creative process engagement on the linkage among green transformational leadership, green product and process innovation within the manufacturing context.

The impact of servitization on the environmental and social performance in manufacturing firms

PurposeThis study aims to examine how servitization affects the environmental and social performance of manufacturing firms.Design/methodology/approachThe hypotheses are tested using fixed-effect panel models based on secondary data of 1,413 manufacturing firms publicly listed in the USA.FindingsResults show that servitization is positively related to the social performance of manufacturing firms; this positive relationship is more prominent under high levels of human resource slack. However, the impact of servitization on environmental performance depends on the level of absorptive capacity and human resource slack. Servitization improves environmental performance under high levels of absorptive capacity and human resource slack, while this positive impact is insignificant under low levels of absorptive capacity and human resource slack.Research limitations/implicationsThe study focuses on the degree (depth) of servitization but ignores the scope of services provided by manufacturing firms (breadth of servitization).Practical implicationsThis research suggests that servitization is an effective way of achieving simultaneous improvements in environmental and social performance. However, high levels of absorptive capacity and human resource slack are needed to achieve this goal.Originality/valueThis study contributes to the servitization literature by demonstrating the environmental and social sustainability benefits of servitization. The findings also highlight the crucial role of absorptive capacity and human resource slack on improving environmental and social performance through servitization.

Organizational creativity and sustainability-oriented innovation as drivers of sustainable development: overcoming firms' economic, environmental and social sustainability challenges

PurposeSustainable development is key to firms' competitiveness, survival, growth and profitability, although sustainability emerges as a great challenge. The aim of this study is to analyze the links between organizational creativity (which integrates sustainability orientation), sustainability-oriented innovation and the multidimensionality of firms' sustainability performance.Design/methodology/approachA total of 417 valid responses from manufacturing SMEs were collected through a questionnaire. PLS-SEM is the statistical technique used in the hypothesis testing.Findings Organizational creativity (which integrates sustainability orientation) and sustainability-oriented innovation are positively associated with economic sustainability performance, environmental sustainability performance and social sustainability performance; sustainability-oriented innovation has a partial mediation effect on the relationship between organizational creativity and economic, environmental, and social sustainability performance; and organizational creativity (which integrates sustainability orientation) has a positive effect on sustainability-oriented innovation.Originality/valueSustainability orientation is integrated into organizational creativity without limiting it, sustainability-oriented innovation encompasses innovation and sustainability in all its breadth without forgetting the innovation process openness, and firm's sustainability performance has a multidimensional approach. Such innovation and creativity contribute – in an interconnected way – to sustainable development, as well as overcoming sustainability challenges and firms' barriers to sustainability. Likewise, the aforementioned creativity must be implemented throughout the company, even beyond its contribution to the innovation process. Thus, the implementation of new ideas, thoughts, perspectives, views, and mental models – fruit of the described creative process – will generate new models and paths in which firms' profitability, growth and survival are related with overcoming environmental and social problems.

Reconfigurable manufacturing system: a systematic bibliometric analysis and future research agenda

PurposeThe purpose of this paper is to conduct a systematic bibliometric analysis of reconfigurable manufacturing system (RMS) articles using VOSviewer to identify their research themes and future research trends and investigate their interconnectivity. This paper also aims to identify prominent authors, publishers, organizations, countries and their collaborations in the RMS domain.Design/methodology/approachIn this study, the Scopus database is used to retrieve 454 RMS articles published between 1988 and 2020. These articles are then investigated using VOSviewer to determine their interconnectedness, clusters and citations, as well as to generate a map based on text data. The network visualization diagrams and clusters obtained for documents, authors, sources, organizations and countries are explored to determine the current state and future trends in RMS research.FindingsA bibliometric analysis of selected articles is performed, and current research hotspots in this domain are identified. This work also investigates the current status and future research trends in this domain. The work presented also identifies top researchers, journals, countries and documents in RMS.Practical implicationsThis paper can provide academics, researchers and practitioners with additional research insights. At the same time, the research trends identified here can help to direct research and benefit researchers.Originality/valueThe study is the first attempt to review selected documents in the RMS domain using bibliometric analysis tools, and it presents a method for collecting articles, organizing them and analyzing the data.