Lingli Luo, Xueyuan Liu, Xiande Zhao and Barbara B. Flynn
As quality issues become more prominent in supply chain (SC) management, understanding the factors driving SC quality integration (SCIQ) and quality performance has become…
Abstract
Purpose
As quality issues become more prominent in supply chain (SC) management, understanding the factors driving SC quality integration (SCIQ) and quality performance has become increasingly important, shifting the focus of quality management to firms in SCs. This study aims to examine the role of SC quality leadership (SCQL) in facilitating SCIQ and its direct and indirect relationship with quality performance.
Design/methodology/approach
Data on 400 Chinese manufacturing firms were collected using survey questionnaires. The hypothesised relationships between SCQL, SCIQ and quality performance were tested using structural equation modeling in AMOS 22.0.
Findings
Empirical results show that SCQL has a positive and significant effect on quality performance and all three dimensions of SCIQ: supplier quality integration, internal quality integration and customer quality integration. The results also show that SCIQ mediates the relationship between SCQL and quality performance.
Practical implications
Executives should develop SCQL to improve SCIQ in their SCs and ultimately improve quality performance. In particular, nurturing SQI can potentially lead to unique capabilities, relative to competitors. They should be aware of their important role in integrating and coordinating between functional units within the firm and between SC members.
Originality/value
This study enriches the SCM literature by identifying SCQL as a new and significant antecedent of SCIQ in manufacturing firms. It contributes to the SC leadership literature by conceptualizing both the quality and social responsibility aspects of SC leadership, conceptualizing SCQL at the firm level and positioning SCIQ as a mediator between SCQL and quality performance.
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John Z. Ni, Steve A. Melnyk, William J. Ritchie and Barbara F. Flynn
The purpose of this paper is to focus on adoption of certified management standards, specifically public standards. Such standards play an increasingly important role in today’s…
Abstract
Purpose
The purpose of this paper is to focus on adoption of certified management standards, specifically public standards. Such standards play an increasingly important role in today’s business environment. However, to generate adoption benefits, they must be first widely accepted – a situation where they have become viewed as the de facto norms. For this state to occur early adopters play a critical role. Past research has argued that early adopters, in exchange for assuming more risk, are rewarded with higher economic returns. Yet, these findings are based on private, not public standards. With public standards, early adopters do not receive such benefits. There is evidence that public standards are becoming more important. This situation leads to a simple but important question addressed in this study – if early adopters assume the risks of embracing a new public standard without economic benefits, then what is their motivation? To resolve this question, this study draws on agency theory and prospect theory. The authors argue that early adopters embrace such standards because of their desire to minimize risk resulting from failure to support the goal at the heart of the public standards.
Design/methodology/approach
Data were obtained from the Customs-Trade Partnership Against Terrorism (C-TPAT) Partners Cost Benefit Survey and analyzed through structural equation modeling.
Findings
Early adopters of public standards are not driven by economic benefits but rather by the need to minimize their exposure to the risks associated with failing to satisfy the goals associated with a public standard. In other words, they were motivated by the need to minimize costs. In the case of C-TPAT, these costs are those of failing to provide or improve network security.
Research limitations/implications
This study has shed new light on the standards adoption process by clarifying the specific motivations that drive early adoption of a public standard. In addition to identifying the loss aversion motives of early adopters and economic benefit motives of later adopters, the authors have also elaborated on the notion that standards have differing levels of precedence, particularly when comparing private with public standards.
Practical implications
In a world characterized by increasing demands for outcomes such as improved security and where governmental funding is falling, due to growing deficits and governments that are becoming more conservative, the authors expect the use of public standards to increase.
Originality/value
Different from prior research on private standard, the paper focuses on the organizations involved in the adoption and diffusion of a public standard, with special attention being devoted to the early adopters. The paper provides a theoretical explanation for the actions of early adopters of a public standard through the theoretical lens of prospect theory.
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Haiju Hu, Ramdane Djebarni, Xiande Zhao, Liwei Xiao and Barbara Flynn
Using the combined theoretical umbrella of organizational legitimacy theory, service-dominant logic, fairness heuristic theory and two-factor theory, the purpose of this paper is…
Abstract
Purpose
Using the combined theoretical umbrella of organizational legitimacy theory, service-dominant logic, fairness heuristic theory and two-factor theory, the purpose of this paper is to investigate the effectiveness of different food recall strategies (recall proactiveness and compensation) in terms of both how consumers react (perceived organizational legitimacy and purchase intention) and how recall norms would influence the effectiveness in three countries. In addition to the reporting of important results, this paper provides implications for food companies to handle effectively the recalls, especially when the recalls are cross-country.
Design/methodology/approach
A 2 compensation (high vs low) ×2 recall strategy (proactive vs passive) scenario experiment was conducted in Hong Kong, the USA and Mainland China. After checking the effectiveness of manipulation, the paper tested the main effect and interaction effect of recall proactiveness and compensation on perceived organizational legitimacy and purchase intention. In addition, the mediating effect of perceived organizational legitimacy between recall strategies and purchase intention was also tested.
Findings
Significant main effect, interaction and mediation effect were found across the three countries with a different pattern. For the USA and Mainland China which have strong recall norms, the interaction found followed the predictions of the two-factory theory. However, the pattern found in Hong Kong, which has weak recall norms, followed the predictions of the fairness heuristic theory. Full mediation effect of perceived organizational legitimacy between compensation and purchase intention was found in the USA and Mainland China, while it was only partial in Hong Kong. For the mediation between proactiveness and purchase intention, full mediation was found in Hong Kong and the USA, while it was only partial in Mainland China.
Originality/value
First, this study differentiated food recall strategy into two dimensions – recall proactiveness and compensation. Second, this study tested the applicability of two-factor theory and fairness heuristic theory in recalls by testing the competing hypotheses proposed according to the two theories. Finally, this study can further help our understanding of the recall effectiveness across different recall norms.
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Min Zhang, Xiande Zhao, Baofeng Huo and Barbara Flynn
This study aims to examine the relationships between power, relationship commitment and customer integration by replicating and extending Zhao et al. (2008) in China and the USA.
Abstract
Purpose
This study aims to examine the relationships between power, relationship commitment and customer integration by replicating and extending Zhao et al. (2008) in China and the USA.
Design/methodology/approach
This study collects data from 210 manufacturers in China and 202 manufacturers in the USA. In this study, structural equation modelling is used to analyse the data.
Findings
This study finds that normative relationship commitment is positively associated with customer integration and expert and referent power are positively associated with normative relationship commitment in China and the USA. Reward and coercive power are positively associated with instrumental relationship commitment in China, whereas referent power is negatively associated. Referent, legal legitimate and reward power are positively associated with instrumental relationship commitment in the USA, whereas expert and legitimate power are negatively associated.
Originality/value
This study provides empirical evidence on the distinct impacts of different bases of mediated and non-mediated power in China and the USA, contributing to the development of the power-relationship commitment theory. The findings also provide insights into where and when the theory applies. The results can provide guidelines for managers to adjust the use of power to improve relationship commitment and customer integration in China and the USA.
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Thomas Bortolotti, Stefania Boscari, Pamela Danese and Barbara Bechler Flynn
This paper investigates how a firm’s organizational culture profile (configuration of organizational culture types) influences the effectiveness of operations management (OM…
Abstract
Purpose
This paper investigates how a firm’s organizational culture profile (configuration of organizational culture types) influences the effectiveness of operations management (OM) practices in improving their targeted outcomes.
Design/methodology/approach
We developed alternative hypotheses based on contingency and paradox perspectives to predict the effectiveness of OM practices in dominant (one prevalent organizational culture type) vs eclectic (opposing organizational culture types at a similar level) organizational culture profiles. They were tested using data from over 7,000 respondents across 330 manufacturing plants in 15 countries.
Findings
Consistent with contingency theory, OM practices oriented toward innovation are more efficacious in plants with an adhocracy-dominant organizational culture profile and practices targeting supply chain (SC) control are less effective in a clan-dominant organizational culture profile. Consistent with paradox theory, OM practices oriented toward efficiency or SC control are more effective in plants with an eclectic organizational culture profile.
Practical implications
This study offers relevant practical implications regarding the effectiveness of various OM practices, whether they are used in an aligned dominant organizational culture profile or in an eclectic organizational culture profile.
Originality/value
Previous research on organizational culture provides a limited understanding of the effectiveness of OM practices in the presence of strategic tensions, such as opposing organizational cultures or opposing targeted outcomes. This research concludes that the validity of the contingency or paradox perspective depends on strategic tensions faced, with important implications for research and practice.
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Kenyth Alves de Freitas, Barbara Bechler Flynn and Ely Laureano Paiva
This paper explores how a firm that is established in an environment characterized by uncertainty can engage with weak regulative institutions by developing operational and…
Abstract
Purpose
This paper explores how a firm that is established in an environment characterized by uncertainty can engage with weak regulative institutions by developing operational and institutional capabilities.
Design/methodology/approach
We employ a multiple case study approach with seven leading multinational firms in Brazil in industries that vary in industry concentration.
Findings
Firms choose among alternative strategies for engaging with regulative institutions as an ongoing process, based on their assessment of four characteristics of the uncertainty they face and their capabilities. Strategies that require a firm to exert greater effort to adapt to institutions or influence institutions have a greater potential to catalyze for developing operational capabilities. Although firms in industries with different concentrations behave similarly in individually adapting to regulative institutions, firms in decentralized industries are more likely to collaborate to influence institutions, which enables them to both access public agents through network partners and better negotiate their own interests.
Practical implications
This research guides managers in developing institutional engagement strategies to reduce the potential consequences of institutional uncertainty in their supply chain. It also suggests types of institutional capability aligned with decentralized vs concentrated industries.
Originality/value
We extend the construct of institutional engagement strategies from the context of entrance to a new international market to an ongoing process in firms that are established in an environment characterized by weak regulative institutions. We also examine the role of industry concentration in the application of institutional engagement strategies.
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Kenyth Alves de Freitas, Barbara Bechler Flynn, Ely Laureano Paiva and Amrou Awaysheh
This paper investigates how companies become resilient to supply chain (SC) piracy through using transactional and relational governance mechanisms to develop strategies effective…
Abstract
Purpose
This paper investigates how companies become resilient to supply chain (SC) piracy through using transactional and relational governance mechanisms to develop strategies effective in environments characterized by weak regulative institutions and mistrust.
Design/methodology/approach
This study developed case studies of nine large manufacturers with operations in Brazil.
Findings
The companies employed transactional and relational governance mechanisms to learn from past incidents, anticipate, and respond to the threat of SC piracy, becoming more resilient over time. Transactional governance mechanisms reduced risk triggers through technology, while relational governance mechanisms enhanced trust between SC and non-SC members, allowing the members to build social capital.
Practical implications
The authors provide practical guidance for managers and policymakers in developing risk management strategies based on technology and collaboration to reduce SC piracy in environments characterized by mistrust.
Social implications
SC piracy is a serious problem for global operations and SCs in many low-cost manufacturing locations. Besides the cost and service level consequences, the authors also highlight worker safety consequences, including the potential for kidnapping, psychological trauma, injuries, and death.
Originality/value
This study focuses on the little-researched topic of SC piracy. The authors examine the negative effects of a weak institutional environment, while most prior research focuses on the positive effects of a strong institutional environment. The authors position transactional and relational governance mechanisms as essential elements of SC risk resilience.
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Cesar H. Ortega, Pedro Garrido‐Vega and Jose Antonio Dominguez Machuca
Using the matching/difference perspective, the purpose of this paper is to examine the interaction fit between a set of managerial practices from manufacturing strategy (MS) and…
Abstract
Purpose
Using the matching/difference perspective, the purpose of this paper is to examine the interaction fit between a set of managerial practices from manufacturing strategy (MS) and another set from technology management (TM) and the link of this fit to operational performance.
Design/methodology/approach
The paper applies multiple statistical methods to a database of an international sample of plants in the auto supplier sector to explore (deviation score analysis/multiple linear regression) and confirm (correlation and variance subgroup analysis) whether a matching model presents organisational disequilibrium, where states of fit are related to effectively higher performance than states of misfit.
Findings
Results from regression show that there were no states of misfit between the levels of both manufacturing practice sets/areas. This means that there are no significant differences in performance that may be tested for matching interaction. However, subgroup analysis provides greater detail on why there might not be any misfits (i.e. state of fit), by illustrating that when grouping by plant type (high/world class performer, HP, and standard performer, SP), the slight lack of significant difference in the correlation between MS and TM was in favour of HP. The implementation levels of MS‐TM found were not significantly different, showing for HP slightly higher levels for both practices (+&+) than for SP, with slightly lower values in both cases (− & −). Therefore, it seems that both groups might perform equally well, due not to interaction but to the presence of a state of MS‐TM fit alone. A state of fit such as this, known as selection or congruency, would be the reason for there being no significant matching interaction originally.
Originality/value
Most of the interaction fit bibliography is from the accounting perspective. Therefore, the impact of the matching interaction fit between MS and TM (as well as its impact on performance) has not been well documented theoretically, and much less, empirically, in production and operations management.
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Barbara B. Flynn, Roger G. Schroeder, E. James Flynn, Sadao Sakakibara and Kimberly A. Bates
A number of authors have used terms such as “world‐class manufacturing”, “high performance manufacturing” and others to describe comprehensive approaches to manufacturing…
Abstract
A number of authors have used terms such as “world‐class manufacturing”, “high performance manufacturing” and others to describe comprehensive approaches to manufacturing performance improvement. They have broken new ground by introducing the notion of broad, organization‐wide improvement approaches, involving many complex interrelationships. However, testing the associated relationships is just beginning. The WCM Project seeks to articulate the practices which are associated with world‐class manufacturing and their interrelationships. In this attempt, a number of studies have been conducted, using the comprehensive database developed for the project. Provides a detailed examination of the development and verification of the database, which contains perceptual and objective information about quality, JIT, technology, strategy, organization characteristics and human resource management practices of 42 plants in the machinery, electronics and transportation components industries. It also provides a brief overview of three of the studies conducted as part of this project, dealing with: manufacturing process innovation; the relationship between quality practices and performance; and the relationship between TQM and JIT. Each of these highlights specific practices which are related to performance, as well as relevant infrastructure characteristics.
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Michiya Morita, Jose A.D. Machuca, Barbara Flynn and Hiro Matsuo