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Article
Publication date: 30 October 2007

Christer Karlsson and Martin Sköld

Traditional perspectives of manufacturing strategy tend to focus internal transforming activities, including how transformed resources are handled and the relations with other…

2003

Abstract

Purpose

Traditional perspectives of manufacturing strategy tend to focus internal transforming activities, including how transformed resources are handled and the relations with other value‐creating operations inside and outside the firm. Manufacturing management evolved as a discipline with little clear alignments with business strategy and firm positioning. Even manufacturing strategy is often delimited to the boundaries of the firm and its dyad relations to collaborating actors such as suppliers and distributors. This paper aims at exploring and demonstrating what a network perspective can add to the understanding of manufacturing management and strategy.

Design/methodology/approach

The research design is built on principal reasoning of future manufacturing strategy. Articles and conference papers together with over 25 years of field studies constitute the empirical base. An industry was chosen to demonstrate the application of the research framework of horizontal and vertical technologies.

Findings

The analysis indicates that manufacturing occurs within open‐production systems here called extraprises as an extension to enterprises with their inside the firm focus. Taking a network perspective, it is suggested that a conceptual framework of horizontal and vertical technologies offers a fruitful conceptualization to identify the content and meaning of future manufacturing strategy.

Research implications/implications

The network theory conceptualization takes the view of manufacturing systems a further step beyond systems theory and contributes a richer framework for manufacturing strategy research.

Originality/value

It is argued that future directions of manufacturing strategy will gain from taking a network perspective using network theory with its foundations in actors, resources, and activities.

Details

Journal of Manufacturing Technology Management, vol. 18 no. 8
Type: Research Article
ISSN: 1741-038X

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Article
Publication date: 21 December 2023

Yue He, Zan Mo and Huijian Fu

Downward line extension is a valuable growth strategy that enables multiple products and services to meet diverse customer needs. However, downward extended products launched by…

579

Abstract

Purpose

Downward line extension is a valuable growth strategy that enables multiple products and services to meet diverse customer needs. However, downward extended products launched by high-status brands may be challenged by horizontal extended products launched by relatively low-status brands when these two types of products target similar consumers. This study aims to examine the impact of product type (horizontal extended versus downward extended) on consumers’ purchase intentions, the underlying mechanism and the moderating role of power distance belief.

Design/methodology/approach

Four scenario-based experiments were conducted to probe the research questions.

Findings

Consumers develop lower purchase intentions for downward (versus horizontal) extended products due to the reduction of perceived fit and self-congruity (Study 1). Beyond that, power distance belief moderates the impact of product type on consumers’ purchase intentions, as a low power distance belief reduces the negative effect of downward line extension (Studies 2a, 2b and 2c). Perceived fit and self-congruity mediate the interaction effect between product type and power distance belief on consumers’ purchase intentions (Study 2c).

Practical implications

This study provides marketing practitioners with guidance on implementing the strategy of downward line extension.

Originality/value

This study serves as a preliminary effort to compare consumers’ responses between downward and horizontal extended products, which deepens the understanding of downward line extension. It also contributes to the body of knowledge about line extension and power distance belief by demonstrating the moderating role of power distance belief in a line extension context.

Details

Journal of Product & Brand Management, vol. 33 no. 2
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 29 July 2021

Maryam Lotfi and Abby Larmour

The COVID-19 outbreak highlights that many supply chains are exposed to unforeseen disruptions, that risks are unavoidable, and that the international nature of supply chains can…

1518

Abstract

Purpose

The COVID-19 outbreak highlights that many supply chains are exposed to unforeseen disruptions, that risks are unavoidable, and that the international nature of supply chains can seriously disrupt normal operations. Therefore, the need for Supply Chain Resilience (SCRES) is more imperative than ever. Furthermore, collaboration in supply chains may have benefitted the response to the COVID-19 outbreak. The aim of this research is to gain a deeper understanding of how collaboration with both types of horizontal and vertical collaboration in the supply chain affects its resilience.

Design/methodology/approach

A thematic analysis of the literature is used to investigate the concepts of both vertical and horizontal collaboration and supply chain resilience separately, then integrating identified themes to understand the relationship between them through a thematic map.

Findings

The thematic analysis indicates that the more firms collaborate in the supply chain, the more resilient they will be. Furthermore, both horizontal and vertical collaboration between supply chain partners will enhance resilience. This relationship is positively moderated by governance in the partnership and negatively moderated by competition in the partnership.

Originality/value

This is one of the first papers to provide in-depth insights into how collaboration, with both types of horizontal and vertical collaboration, affects supply chain resilience. Neither of previous articles provide an understanding of how both types of collaboration enables supply chain resilience.

Details

Continuity & Resilience Review, vol. 4 no. 1
Type: Research Article
ISSN: 2516-7502

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Article
Publication date: 14 September 2015

Vasco Sanchez Rodrigues, Irina Harris and Robert Mason

The paper aims to develop a supply chain-driven model horizontal logistics collaboration (HLC). HLC initiatives can fail. To improve the chance of success, a thorough…

5714

Abstract

Purpose

The paper aims to develop a supply chain-driven model horizontal logistics collaboration (HLC). HLC initiatives can fail. To improve the chance of success, a thorough consideration of the potential issues involved, such as seeking supply chain partners’ support, ensuring access to information/data security and assessing whether an HLC model could bring improvements to a wide range of supply chain metrics rather than reductions in distribution costs only, needs to be understood before deciding to proceed with such an initiative.

Design/methodology/approach

A two-stage methodology is deployed. As part of Stage 1, a series of 20 semi-structured interviews with senior managers from retailers, retailers’ suppliers and logistics service providers were undertaken. Subsequently, in Stage 2, a focus group with practitioners from retailers and logistics service providers was run to verify the findings gathered during Stage 1. Four elements of a new HLC project being considered are investigated by supply chain champions across the UK Fast-Moving Costumer Goods industry, namely, consideration factors, required synergies, enablers and anticipated output metrics.

Findings

When considering whether to embark on an HLC project, the supply chain requirements need to be taken into account and potential supply chain performance benefits projected. The paper identified several consideration factors; synergies and enablers that support the development of HLC projects are identified, such as legislation, trust among partners, common suppliers and delivery bases, capable third party logistics (3PL) and an effective commercial model, including a fair sharing of benefits.

Research limitations/implications

The research provides new understanding in accounting for the needs of the supply chain when considering an HLC initiative involving leading players from the retail sector.

Practical implications

The importance of taking a supply chain approach when evaluating the feasibility of HLC is demonstrated. HLC arrangements among competing supply chains need to be designed and run by taking account of all supply chain partners, namely, suppliers, 3PLs and customers (in this case, retailers).

Originality/value

The contribution is threefold: identification of outset consideration factors, ideal required synergies, actioning enablers and wider supply chain metrics of HLC; development of a supply chain-driven model for HLC, which includes in the decision-making whether or not to adopt a horizontal logistics collaboration model, wide supply chain metrics such as stock levels of finished products and shelf availability, inventory, working and fixed capital, and product waste in addition to distribution costs; and, the proposal of a new definition for HLC which challenges published definitions.

Details

Supply Chain Management: An International Journal, vol. 20 no. 6
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 8 May 2018

Daniel González-Sánchez, Isabel Suárez-González and Javier Gonzalez-Benito

The purpose of this paper is to analyse the effect that a horizontal fit between two functions (human resources (HR) and manufacturing) has on firm performance, distinguishing…

937

Abstract

Purpose

The purpose of this paper is to analyse the effect that a horizontal fit between two functions (human resources (HR) and manufacturing) has on firm performance, distinguishing between fit in objectives and fit in achievements.

Design/methodology/approach

This study uses 144 double surveys, addressed to two different respondents per company. Structural equation modelling was used to investigate the mediating role of fit in achievements in the relationship between fit in objectives and performance.

Findings

The study provides evidence of the particular way in which the two components of horizontal fit that the authors distinguish (fit in objectives and fit in achievements) the impact on performance: fit in objectives has an indirect effect on performance, which is fully mediated by the fit in achievements. The results also show that environmental dynamism has a significant impact on both the advantages and drawbacks of fit.

Practical implications

By highlighting the importance of both levels of horizontal fit and distinguishing between them, this paper calls upon HR and manufacturing managers to show a greater understanding of the key dimensions common to both areas.

Originality/value

This study analyses horizontal fit by developing a framework of priorities in HR management (HRM) similar to that traditionally used in production management. In particular, it adapts the framework of production competence to the area of HRM to study the fit between the two functional strategies. This study also supports the value chain model proposed by Porter (1985).

Details

International Journal of Operations & Production Management, vol. 38 no. 7
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 15 February 2008

Meera Komarraju, Stephen J. Dollinger and Jennifer L. Lovell

This study aims to examine the role of horizontal and vertical individualism‐collectivism in explaining conflict management styles. Design/methodology/approach – A total of 640…

6725

Abstract

Purpose

This study aims to examine the role of horizontal and vertical individualism‐collectivism in explaining conflict management styles. Design/methodology/approach – A total of 640 respondents completed the Rahim Organizational Conflict Inventory‐II (ROCI‐II, Form C) designed to assess five conflict management styles and the individualism‐collectivism (I‐C) scale designed to assess the vertical and horizontal aspects of individualism‐collectivism. Findings – Correlation and regression analyses provide support for a conceptual fit between cultural dimensions and conflict management styles. Horizontal and vertical aspects of individualism‐collectivism explained 5‐20 percent of the variance in the various conflict management styles. Specifically, individuals displaying an individualist orientation (horizontal and vertical) tended to give greater importance to satisfying personal needs and preferred a dominating style, rather than an obliging or avoiding style. In contrast, collectivists (horizontal and vertical) seemed more likely to sacrifice personal needs for the sake of the group and preferred an integrating style. Further, horizontal collectivists were more likely to prefer an obliging style and vertical collectivists an avoiding style of conflict management. Research limitations/implications – Generalization is limited to college student samples from the USA. Practical implications – Organizations could provide training programs to sensitize employees to their specific cultural orientations and their preferred conflict management styles. In addition, employees could learn to switch between styles depending on the situation, issue, or relationship within which the conflict is taking place. Originality/value – Highlights the importance of sensitizing employees to their cultural orientation and preferred conflict management style; raises the possibility of training them to develop alternate styles.

Details

International Journal of Conflict Management, vol. 19 no. 1
Type: Research Article
ISSN: 1044-4068

Keywords

Available. Open Access. Open Access
Article
Publication date: 21 September 2021

María D. Illescas-Manzano, Sergio Martínez-Puertas and Manuel Sánchez-Pérez

Hotels are immersed in a very competitive environment and hoteliers have to plan and redesign their strategies to stay in the hospitality industry while faced with a steady rise…

2012

Abstract

Purpose

Hotels are immersed in a very competitive environment and hoteliers have to plan and redesign their strategies to stay in the hospitality industry while faced with a steady rise in competition. Hoteliers can employ horizontal differentiation strategies and pricing decisions to gain a competitive advantage over their competitors. The goal of our work is to analyse the effect of pricing and horizontal differentiation strategy of a hotel on its online reputation and to analyse if the hotel location and agglomeration of competitors moderates their relationship with online reputation.

Design/methodology/approach

With a sample of 264 hotels from Paris, an empirical study is developed that aims to analyse, using regression techniques, the impact of price, differentiation, location and competitive environment on online ratings given by consumers in the hospitality context.

Findings

The paper provides empirical evidence of how a good location improves the online reputation of a company and how pricing strategies should take into account the location and number of competitors since a good location allows premium prices to be valued positively by consumers while an inappropriate location can produce the opposite effect. Depending on location, the number of competitors can intensify or reduce the effect of price on online reputation. Finally, online reputation only benefits from horizontal differentiation strategies when the degree of agglomeration is low.

Originality/value

This work provides insights about how hotels can strengthen their online reputation through pricing and differentiation strategies, incorporating elements of their environment such as location and competition in this decision-making process.

研究目的

酒店處於一個競爭非常激烈的經營環境中,營運者要面對競爭日益加劇的挑戰,在這情況下,他們必須計劃並重新設計其策略,以在酒店服務業中仍能繼續其業務。營運者可採用水平分化策略和定價決策,以取得比同業更大的競爭優勢。本研究旨在分析,若酒店採用價格及水平差異之策略,這對它們的網上聲譽會起什麽效應;研究亦探討酒店所處的位置及競爭者的凝聚會否減弱其與網上聲譽的關係。

研究設計/方法/理念

研究樣本為來自巴黎264間酒店。研究人員採用實驗研究法,透過迴歸分析法,去分析在酒店服務的背景下,價格、差異化、地點和競爭環境如何影響消費者所給予的網上評分。

研究結果

本文提供了經驗性證據,證明良好的地點會改善公司的網絡聲譽; 同時,亦證明釐定價格策略時,經營者應考慮競爭者的位置和數目,這是因為良好的地點會讓消費者正面評價溢價,而不合適的地點則會導致相反的效應。根據所在的地點,消費者的數目能增強或減弱價格對網絡聲譽的影響。最後,本文也證明了網絡聲譽只會在凝聚程度低的情況下才會受惠於水平分化策略。

研究的原創性/價值

本研究提供啟示,使我們更明瞭酒店如何能透過價格及差異化策略,同時亦透過把它們的環境元素如地點和競爭等納入決策程序中,來強化網絡聲譽。

Details

European Journal of Management and Business Economics, vol. 31 no. 2
Type: Research Article
ISSN: 2444-8451

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Article
Publication date: 25 January 2008

Martin Hingley, Valeria Sodano and Adam Lindgreen

The purpose of this article is twofold: first, to review the literature in order to assess the opportunities and the possible welfare effects of differentiation strategies in the…

7305

Abstract

Purpose

The purpose of this article is twofold: first, to review the literature in order to assess the opportunities and the possible welfare effects of differentiation strategies in the food market; and second, to analyse the current structure and organisation of the fresh produce market (fruit, vegetable, and salad) in the light of new product procurement, innovation, and differentiation policies carried out by retailers at the global level.

Design/methodology/approach

The paper used a single dyadic case study across two countries (Italy and the UK): the primary producer is engaged in “partner” supply to a principal category management intermediary for channel leading multiple retailers.

Findings

First, equilibrium in differentiated markets is not stable, and a welfare assessment is difficult. Second, a differentiation strategy in the market for fresh produce might benefit retailers more than in other sectors, which seem to be consistent with the theoretical findings. Third, when retailers engage in product differentiation it is more likely that channel relationships shift from collaborative to competitive types, with the power imbalance becoming the disciplinary means by which vertical coordination is achieved and maintained.

Research limitations/implications

This article was based on a single case study.

Practical implications

For suppliers it could be wise to agree to some inequity as the cost of doing business, especially when smart large retailers carry out successfully competitive strategies with positive spill‐over effects on the upstream firms.

Originality/value

Using the industrial economic literature on the effects of differentiation strategies (horizontal and vertical differentiation) on market structure, firms' performance, and welfare effects, this paper analyses case findings from a study in the fresh produce industry and will be of interest to those within the field.

Details

British Food Journal, vol. 110 no. 1
Type: Research Article
ISSN: 0007-070X

Keywords

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Article
Publication date: 23 September 2019

Vanessa Ratten

Open innovation is important for technology firms as they can use freely available resources to source creative and innovative ideas. Despite the usefulness of open innovation for…

1048

Abstract

Purpose

Open innovation is important for technology firms as they can use freely available resources to source creative and innovative ideas. Despite the usefulness of open innovation for technological advancements, few studies have focused on the role of cybercrime in affecting an organizations strategic direction. The purpose of this paper is to examine the effect of open innovation on cybercrime in technology firms.

Design/methodology/approach

Semi-structured in-depth interviews were conducted on technology firms to understand the role of open innovation in terms of technology scouting, horizontal collaboration and vertical collaboration on cybercrime activity.

Findings

The study found that there is a dilemma most technology firm’s face in having an open innovation strategy and how to manage cybercrime. This means that a coopetition strategy is utilized that helps to not only balance the need to have open innovation but also protect intellectual property.

Research limitations/implications

The study has implications for emerging technology innovations that not only need to have cyber security but also harness the use of Big Data.

Practical implications

Managers of technology firms need to encourage open innovation as a strategy but manage the cybercrime that comes from sharing too much information in an online context.

Originality/value

This paper is one of the first to link open innovation strategy to cybercrime activity in technology firms. Thus, it contributes to the literature on open innovation and cyber theft and security.

Details

Information Technology & People, vol. 32 no. 5
Type: Research Article
ISSN: 0959-3845

Keywords

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Article
Publication date: 15 January 2018

Qingyun Xu, Bing Xu, Ping Wang and Yi He

This paper aims to address the following problems: What are the firms’ optimal pricing and quality policies under three scenarios (no bundling, pure bundling and mixed bundling)…

672

Abstract

Purpose

This paper aims to address the following problems: What are the firms’ optimal pricing and quality policies under three scenarios (no bundling, pure bundling and mixed bundling)? In what condition will one bundling strategy dominate the others? How does the degree of complementarity affect the firms’ decision?

Design/methodology/approach

Using the game theory, this study first establishes three models of bundling strategies: no bundling, pure bundling and mixed bundling and then obtains the optimal prices and quality decisions. This study uses numerical analysis to explore the relationships between the prices (demands and profits) and some key parameters and to obtain some valuable management complications.

Findings

Some interesting and valuable management implications are established: regardless of the degree of complementarity, adopting a pure bundling or mixed bundling strategy is better than separately selling an individual product; a high degree of complementarity leads to reduced profit in the no bundling and mixed bundling scenarios, whereas the condition in the pure bundling strategy is the opposite; and when the degree of complementarity is adequately large, choosing pure bundling strategy is more profitable.

Research limitations/implications

On the one hand, this study does not calculate the profit sharing ratio, and hence, the equilibrium profit sharing ratio can be explored in future work. On the other hand, marketing efforts (e.g. advertising and promotion) can be included in the study.

Practical implications

This study derives the necessary conditions for the most effective bundling strategy that maximizes firm’s profits, and these conclusions can provide a decision reference to the bundling decisions of firms.

Originality/value

First, the optimal bundling strategies in a horizontal supply chain consisting of two firms is considered. Under the pure and mixed bundling strategies, the two firms sell the bundled product by building a cooperative program. Second, both the pricing policies and quality decisions of supply chain members under the different bundling strategies are studied.

Details

Kybernetes, vol. 47 no. 6
Type: Research Article
ISSN: 0368-492X

Keywords

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