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1 – 4 of 4Lukas Fleisch and Oliver von Dzengelevski
This paper studies the interrelations between the concepts of supply chain resilience and international manufacturing strategy. On the basis of an in-depth case study of a company…
Abstract
Purpose
This paper studies the interrelations between the concepts of supply chain resilience and international manufacturing strategy. On the basis of an in-depth case study of a company in the semiconductor industry, the paper seeks to integrate the concept of resilience into international manufacturing strategy.
Design/methodology/approach
In an explorative qualitative single case study of a semiconductor manufacturer, a systems thinking model is developed from expert interviews and literature research that displays the interrelations of constituent constructs of supply chain resilience and international manufacturing strategy.
Findings
Forecast accuracy and organizational inertia are identified as barriers to resilience, whereas information technology (IT) capabilities and vertical integration are identified as major levers. Causal relations between constructs are identified, and a concrete suggestion for theory refinement of the manufacturing strategy framework of Miltenburg (2009) is provided.
Originality/value
Prior literature on international manufacturing networks (IMNs) has not sufficiently taken into account the importance of resilience in the formulation of international manufacturing strategies. This paper aids in the integration of this increasingly important concept, in a critical industry that has recently been subject to major disruptions.
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Oliver von Dzengelevski, Torbjørn H. Netland, Ann Vereecke and Kasra Ferdows
When is it more profitable for multinational manufacturers to manufacture in high-cost environments and when in low-cost environments? While the literature offers many cues to…
Abstract
Purpose
When is it more profitable for multinational manufacturers to manufacture in high-cost environments and when in low-cost environments? While the literature offers many cues to answer this question, too little empirical research directly addresses this. In this study, we quantitatively and empirically investigate the financial effect of companies' production footprint in low-cost and high-cost environments for different types of production networks.
Design/methodology/approach
Using the data of 770 multinational manufacturing companies, we analyze the relationship between production footprints and profitability during four calendar semesters in 2018 and 2019 (N = 2,940), investigating the moderating role of companies' production network type.
Findings
We find that companies with networks distinguished by both high levels of product complexity and process sophistication profit the most from producing to a greater extent in high-cost countries. For these companies, shifting production to low-cost countries would be associated with negative performance implications.
Practical implications
Our findings suggest that the production geography of companies should be attuned to their network type, as defined by the companies' process sophistication and product complexity. Manufacturing in low-cost countries is not always the best choice, as doing so can adversely affect profits if the products are highly innovative and the production processes are complex.
Originality/value
We contribute to the scarce empirical literature on managing global production networks and provide a data-driven analysis that contributes to answering some of the enduring questions in this critical area.
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Oliver von Dzengelevski, Marian Wenking, Torbjørn H. Netland and Thomas Friedli
In this paper, the authors empirically investigate under which conditions production network management is effective to improve manufacturers' financial performance. For this, the…
Abstract
Purpose
In this paper, the authors empirically investigate under which conditions production network management is effective to improve manufacturers' financial performance. For this, the authors explore contingencies between production networks and the three key dimensions of organizational environment.
Design/methodology/approach
A survey with senior managers was conducted for this research. The authors used a hierarchical regression analysis to test interaction effects and draw on follow-up interviews with chief operating officers (COOs) and senior managers to elaborate and explain the found associations.
Findings
Results indicate that manufacturers' financial performance is only associated with their network capability level if they operate in hostile competitive environments. In moderate competitive environments, improvements in the network capability level are not associated with greater financial performance. In particularly munificent environments, such production network upgrades are even associated with the opposite effect.
Practical implications
Results highlight in which organizational contexts upgrading production networks has positive performance implications and under which circumstances it is ineffective or even counterproductive.
Originality/value
The authors draw on unique survey data to add quantitative evidence to the predominantly conceptual and qualitative literature on global production networks. This is also one of the first studies to connect the topics of production networks and organizational environment.
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Sophie V. Fenner, Maricela C. Arellano, Oliver von Dzengelevski and Torbjørn H. Netland
Frontline teams are at the centre of lean transformations, but the teams also transform as they implement lean. This study examines these changes and seeks to understand how lean…
Abstract
Purpose
Frontline teams are at the centre of lean transformations, but the teams also transform as they implement lean. This study examines these changes and seeks to understand how lean relates to team psychological safety and learning.
Design/methodology/approach
This research setting is the Romanian division of a leading European energy company. The authors collected team-level audit and survey data, which the authors used to test the effect of lean implementation on team psychological safety and learning. The authors’ team-level data are complemented with qualitative interviews conducted with team members and headquarters leaders.
Findings
The results of the regression analyses show that leanness is positively associated with team psychological safety, which is in turn positively associated with learning. Thus, this research provides evidence that leanness – mediated by team psychological safety – increases team learning.
Practical implications
Lean changes team dynamics and learning positively by ensuring and promoting an emotionally sound work environment with clear team structures, an appropriate level of autonomy, and strong leadership.
Originality/value
This paper contributes evidence of important psychological mechanisms that characterise team-level lean implementation. Particularly, the authors highlight how team psychological safety mediates the relationship between leanness and team learning.
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