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1 – 10 of 29Oliver 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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Evelyne Vanpoucke, Ann Vereecke and Steve Muylle
Companies increasingly exchange information to work more closely with supply chain partners. Although information exchange is a critical element for up- and downstream…
Abstract
Purpose
Companies increasingly exchange information to work more closely with supply chain partners. Although information exchange is a critical element for up- and downstream partnerships, the purpose of this paper is to indicate that it is not a guarantee for improved performance and should be combined with other integration tactics to fully capture its benefits.
Design/methodology/approach
Using a global sample in the industrial sector, a moderated mediation framework for both upstream and downstream integration, which links integration tactics to operational performance, was empirically tested.
Findings
This research shows that operational integration is indispensable to capture the benefits of information exchange. In addition, it points out that the impact of the use of information technology (IT) is stronger for upstream integration.
Practical implications
While the data show that the use of IT significantly improves the delivery performance in the supply chain, it also signals to managers how and when to invest in supply chain integration tactics.
Originality/value
This paper contributes to a better understanding of the supply chain integration-performance link, by clarifying some of the inconsistencies in previous literature and by simultaneously analyzing upstream and downstream implications.
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Federico Caniato, Gary Graham, Jens K. Roehrich and Ann Vereecke
International Journal of Operations and Production Management (IJOPM)'s Impact Pathway (IP) section has been launched in 2020 to host short contributions grounded in current…
Abstract
Purpose
International Journal of Operations and Production Management (IJOPM)'s Impact Pathway (IP) section has been launched in 2020 to host short contributions grounded in current managerial practices and/or policy development, challenging established operations and supply chain management (OSCM) knowledge and highlighting innovative and relevant research directions. This commentary reflects on the achievements of the section, delineates the key features of IP papers and stimulates further development.
Design/methodology/approach
This commentary provides a brief overview of the IJOPM's IP section, taking stock of the contributions that have been published so far, analysing their topics, methodologies, insights and impact.
Findings
The 19 contributions published over the last three years have dealt with a variety of emerging topics, ranging from the COVID-19 response to additive manufacturing, leveraging on key evidence from managerial practice that challenges consolidated knowledge and theory, providing clear research directions as well as managerial and/or policy guidelines.
Originality/value
The commentary reflects on the importance of phenomenon-driven research that seeks to bridge the gap between theory and practice, thus increasing the impact and reach of OSCM research. This is a call for contributions from scholars, business leaders and policymakers to develop further impact-oriented research.
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Ann Vereecke, Karlien Vanderheyden, Philippe Baecke and Tom Van Steendam
The purpose of this paper is to develop and empirically validate a model for assessing demand planning maturity in organisations.
Abstract
Purpose
The purpose of this paper is to develop and empirically validate a model for assessing demand planning maturity in organisations.
Design/methodology/approach
The authors developed a maturity assessment model for demand planning through iterations of theoretical and empirical work, combining insights from literature and practitioners. An online survey is developed to validate the model using data from different industries.
Findings
The authors identify six dimensions of demand planning maturity: data management, the use of forecasting methods, the forecasting system, performance management, the organisation and people management. The empirical study indicates that demand data are well managed and organisation readiness is high, yet improvements in the forecasting system and the management of forecast performance are needed. The results show a positive relationship between the size of an organisation and its demand planning maturity.
Practical implications
The contribution of this work is to propose an assessment model and survey instrument for demand planning maturity. This will help the practitioner to understand the current level of maturity of the demand planning process, reflect on the desired level and develop action plans to close the gap.
Originality/value
There is broad literature on process maturity assessment in general and on sales and operations planning (S&OP) maturity in particular. However, there is no comprehensive model for assessing the maturity of demand planning, which is a specific and critical process within the overall S&OP process. The authors fill this gap by offering a demand planning maturity model.
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Evelyne Vanpoucke, Kenneth K. Boyer and Ann Vereecke
The purpose of this paper is to identify different information flow strategies to enhance integration in strategic alliances and studies these strategies with respect to…
Abstract
Purpose
The purpose of this paper is to identify different information flow strategies to enhance integration in strategic alliances and studies these strategies with respect to contextual factors and the impact on performance.
Design/methodology/approach
The paper examines empirical data gathered from 56 manufacturing companies, describing 112 supply chain relationships. An empirical taxonomy is created based on cluster analysis.
Findings
Based on a parsimonious description of inter‐firm information flows in the literature and this paper's empirical findings, three types of alliances are identified: Silent; Communicative; and IT intensive. While Silent alliances have the poorest overall performance, substantial similarities are found between Communicative and IT intensive alliances. In particular, the analysis suggests that IT intensive alliances, albeit performing better on operational capabilities, are not performing better on relationship satisfaction compared to Communicative alliances. Additional analyses indicate that partners of an IT intensive alliance are substantially more interdependent and larger in size.
Research limitations/implications
This research presents a taxonomy of information flow strategies in a supply chain context. This research is not describing causality, since the data are not longitudinal in nature.
Practical implications
Managers need to selectively invest in IT according to an overall supply chain integration strategy, which also takes softer, less technological forms of integration into consideration.
Originality/value
This research provides insight into inter‐firm information flows from a contingency perspective, recognizing heterogeneity of firms and supply chain practices.
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Ann Vereecke, Els Pandelaere, Dirk Deschoolmeester and Marleen Stevens
The paper describes the results of an exploratory study of the application of programme management in six companies. A classification of programmes developed may help in…
Abstract
The paper describes the results of an exploratory study of the application of programme management in six companies. A classification of programmes developed may help in understanding the differences between programmes and the managerial impact of these differences. The research shows that the formalised and rigorous approach as described in most programme management handbooks is not widely adopted. The cases show less centralisation, less formalisation and less management of the interdependencies between the projects in the programme than one would expect on the basis of the programme management literature. This is especially the case in programmes that originate as a grouping of a set of existing projects. Yet, formalisation is mentioned as the main success factor in managing programmes.
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Liliane Pintelon, Srinivas Kumar Pinjala and Ann Vereecke
To provide a framework that can identify and evaluate the effectiveness of a given maintenance strategy in a company. This can help in the strategic management of maintenance.
Abstract
Purpose
To provide a framework that can identify and evaluate the effectiveness of a given maintenance strategy in a company. This can help in the strategic management of maintenance.
Design/methodology/approach
The framework is developed using Hayes and Wheelwright's four‐stage framework on manufacturing strategy as a guideline. To gain a clearer understanding of the framework and its usefulness the subject topic is elaborated in two phases: definition of maintenance strategy, framework description and operationalization using case examples. The scope of the paper is limited to performance measurement of maintenance strategies.
Findings
It is found that the framework is applicable and useful for the strategic management of the maintenance function. The case example depicting the fourth stage shows that maintenance can also contribute to enhancing the competitive advantage of a company.
Practical implications
Given the current position of maintenance, the framework used in this paper also suggests the strategic direction to progress for long‐term effectiveness. It helps in stimulating practising managers to manage maintenance with a strategic thinking and mindset. It also helps them to visualize the capabilities of maintenance in enhancing the competitive advantage of a company.
Originality/value
Unlike other functions like manufacturing and business, the strategic literature on maintenance is meagre. Many tools and techniques have been developed and applied in other fields. However, the applicability of those tools to maintenance function has never been tried. In that respect this topic is new. It helps in managing maintenance more effectively, given its growing technical and technological complexity.
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Ann Vereecke and Roland Van Dierdonck
The literature on global manufacturing strategy contains few models that help managers to design and manage their global plant network. An interesting model is the one developed…
Abstract
The literature on global manufacturing strategy contains few models that help managers to design and manage their global plant network. An interesting model is the one developed by Ferdows, describing the strategic role of plants. This paper discusses and tests this model. The data provide strong empirical support for the model and add some new insights. It is shown that the role of the “center of excellence” in a manufacturing network is not restricted to plants with know‐how as the primary location advantage, but is also a common role for plants with market proximity as the primary advantage. Also, the model proves to be useful for the description and assessment of today’s network of plants, but it is too limited to serve as a typology for new plants that might be added to the network. Finally, the research shows that the perception of headquarters and of plant management concerning the plants’ strategic role may be very different.
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The purpose of this paper is to empirically test the relationship between supply chain (SC) collaboration and performance improvement.
Abstract
Purpose
The purpose of this paper is to empirically test the relationship between supply chain (SC) collaboration and performance improvement.
Design/methodology/approach
In keeping with the extant literature, hypotheses were developed incorporating dimensions of supplier and customer collaboration and performance improvement. Factor analysis and linear statistical models for correlation and analysis of variance were used to test the hypotheses with IMSS 2001 data on 374 firms from the engineering/assembly industry across 11 European countries.
Findings
Only weak empirical support was found for the hypothesized positive relationships between supplier (or customer) collaboration and performance improvement. There was partial empirical support for the impact of collaboration, both with suppliers and customers, on rates of improvement. For information exchange, performance improvement in respect of cost, flexibility, quality, and procurement was supported, whereas for structural collaboration, only improvement in respect of flexibility and procurement was supported. There was strong empirical support for the hypothesized higher levels of collaboration among companies showing higher performance improvement.
Research limitations/implications
Using cross‐sectional (versus longitudinal), perceptual (rather than absolute) data, coming from a principal firm (rather than from each collaborative entity).
Practical implications
This study indicates that firms need to adopt a concerted approach to collaboration both with suppliers and customers in order to reap maximum performance improvement benefits in the area of cost, flexibility, quality, delivery, procurement, and time‐to‐market.
Originality/value
This study goes beyond analytical modeling and case‐study research on the relationship between SC collaboration and performance improvement and offers industry‐based empirical results on consolidated practical and theoretical insights.
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