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1 – 10 of 22Peder Veng Søberg and Brian Vejrum Wæhrens
This paper aims to explore the effect of subsidiary autonomy on knowledge transfers during captive offshoring to emerging markets.
Abstract
Purpose
This paper aims to explore the effect of subsidiary autonomy on knowledge transfers during captive offshoring to emerging markets.
Design/methodology/approach
Five longitudinal cases of captive R&D and manufacturing offshoring to emerging markets.
Findings
The propositions entail the dual effect of operational subsidiary autonomy on primary knowledge transfer and reverse knowledge transfer. For newly established subsidiaries, operational subsidiary autonomy has a mainly negative effect on primary knowledge transfer and a mainly positive effect on reverse knowledge transfer and local collaboration activities increase this effect. Strategic subsidiary autonomy is mainly negative for primary and reverse knowledge transfer.
Research limitations/implications
Limitations concerning the applied exploratory case study approach suggest that further research should test the identified relationships using surveys, after the initial pilot study.
Practical implications
A gradual increase of operational subsidiary autonomy as the subsidiary capability level increases is beneficial to ensure primary knowledge transfer. Allowing subsidiaries to collaborate locally within the confines of their mandates benefits reverse knowledge transfer.
Originality/value
This paper extends the secondary knowledge transfer concept to include knowledge flows with local collaboration partners, not only other subsidiaries and clarifies the distinction between operational and strategic autonomy concerning local collaboration. A subsidiary asserts operational autonomy when its collaboration with local partners relates to its existing mandate. A subsidiary asserts strategic autonomy when it collaborates with local partners beyond this mandate.
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Brian Vejrum Waehrens and Dmitrij Slepniov
Operations strategy/global operations/value chain.
Abstract
Subject area
Operations strategy/global operations/value chain.
Study level/applicability
BA/Master level – the case can be applied to support operations strategy discussions related to the link between context, configuration and capabilities, and particularly to discuss internationalization strategy and global operations.
Case overview
The case examines how Gabriel, a Danish textile company, transformed itself from being a traditional textile manufacturer to becoming an innovative virtual servi-manufacturer. The case covers the main milestones in Gabriel's recent history, explores the main reasons for the transformation that started in the late 1990s and studies how this transformation towards becoming a virtual servi-manufacturer was dealt with. The case closes with the sections examining the role of innovation activities in the newly transformed company.
Expected learning outcomes
The case is expected to build an understanding of the organisational and operational implications of the journey towards the virtual production company. While the case is broad in its scope, it provides an opportunity to go into details on a number of interrelated topics: operations strategy; global production networks; communication and coordination; interdependencies; and outsourcing and offshoring. The story of Gabriel illustrates a highly successful globalization journey and its underlying dynamics. The case highlights how the operations configuration and the relationships between key parties do not stay constant over time. They rather shift and adapt to internal and external stimuli. The case explores these stimuli in retrospect and describes how the company attempts to reconcile market requirements with its operations configurations and capabilities.
Supplementary materials
Teaching note.
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Keywords
Brian Vejrum Waehrens and Dmitrij Slepniov
Operations strategy/global operations/value chain.
Abstract
Subject area
Operations strategy/global operations/value chain.
Study level/applicability
BA/Master level – The case can be applied to support operations strategy discussions related to the link between context, configuration, and capabilities, and particularly to discuss internationalization strategy and global operations.
Case overview
The case is initiated with an overview of the wider corporate and industrial context, which are included to supply contextual information pertinent to the understanding of competitive requirements and strategic choices of the company. The case then moves into establishing an understanding of the operationalization of these requirements and choices through a discussion of the structural configuration and organizational capabilities.
Expected learning outcomes
The case it expected to build an understanding of the fit between competitive priorities and their operationalization within structural and infrastructural decision areas.
Supplementary materials
Teaching note.
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Astrid Heidemann Lassen and Brian Vejrum Waehrens
The purpose of this paper is to determine how companies develop and acquire competences to capture the benefits of Industry 4.0 (I4.0) technologies. The authors argue that this is…
Abstract
Purpose
The purpose of this paper is to determine how companies develop and acquire competences to capture the benefits of Industry 4.0 (I4.0) technologies. The authors argue that this is a fundamental and often overlooked prerequisite for industrial transformation.
Design/methodology/approach
The authors conduct a process study of 33 small- and medium-sized companies engaged in the transformation of a manufacturing industry from the different perspectives of manufacturers or manufacturing solution providers.
Findings
Key findings indicate a strong link between the specific competence development approach, the specific intricacies of the application domain and the process outcomes. On this basis, a competence development framework is proposed.
Research limitations/implications
The conclusions are drawn from a Danish population of companies in the manufacturing industry and are based on particular contingencies, such as low volume/high mix, high skill, low tech and high cost. However, the findings are believed to be applicable across different sets of contingencies where the need to combine legacy and emerging technologies is present, and where the human factor is central to leveraging technology beyond predefined supplier specifications.
Practical implications
In a time of extraordinary investments in the manufacturing of technologies in support of digital transformation, the development of strategic and operational competences to support these investments is lagging behind. This paper develops a conceptual outset for closing this gap.
Originality/value
The research is based on the fundamental argument that to efficiently apply new technology, a strategic approach to the acquisition of new knowledge and skills is required. The empirical research demonstrates that new skills and knowledge are often assumed to follow automatically from the use of new technologies. However, we demonstrate that this perspective in fact limits the ability to capture the potential benefits ascribed to I4.0 technologies. The authors propose that the competence strategy needs to be expansive and cover not only the technological competences but also the organizational- and individual-level competences. These results add to our understanding of how the digital transformation of manufacturing companies unfolds.
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Michele Colli, Jonas Nygaard Uhrenholt, Ole Madsen and Brian Vejrum Waehrens
This research proposes and demonstrates a framework that can be used to systematically address the idiosyncratic design of Internet of Things (IoT)-based solutions, and to match…
Abstract
Purpose
This research proposes and demonstrates a framework that can be used to systematically address the idiosyncratic design of Internet of Things (IoT)-based solutions, and to match the explorative aspects of introducing a new technology to the exploitative needs, to improve the performance of production operations.
Design/methodology/approach
Due to the applied nature of this research, a design science research (DSR) framework was adopted in order to ensure both the rigor and applicability of the outcomes.
Findings
A process excellence perspective, operationalized through a business process management approach, is applied to scope the solution space according to its exploitative potential. The mapping of the information flow that needs to be established defines the technological infrastructure of the solution.
Research limitations/implications
The theoretical generalizability of the proposed framework is limited by a testing sample of a single case. The research implications are related to a call for the contextualization of IoT applications. Further research will involve the application of this approach to a diverse range of industrial settings. While the domain is far from saturated, a framework that can facilitate such investigations has been provided.
Practical implications
The proposed framework provides practitioners with an approach to designing IoT solutions that can consistently address their needs for operational performance improvements.
Originality/value
This research proposes a framework that links the enabling of transparency via the integration of IoT in production operations to contextual characteristics and business potential. Furthermore, it highlights the developmental drivers of IoT solutions, which emerged during the empirical demonstration of this framework.
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Atanu Chaudhuri, Brian Vejrum Wæhrens, Horst Treiblmaier and Steffen Foldager Jensen
This impact pathways paper identifies drivers and barriers for digital product passport (DPP) applications in electronics supply chains and to derive future research pathways.
Abstract
Purpose
This impact pathways paper identifies drivers and barriers for digital product passport (DPP) applications in electronics supply chains and to derive future research pathways.
Design/methodology/approach
Around39 interviews were conducted with three Original Equipment Manufacturers (OEMs) and their suppliers, customers, recycling partners, DPP service providers and an international standards organisation.
Findings
The results show the four key drivers for DPP adoption: improved decision-making to transition towards a circular economy, ensuring regulatory compliance, improving transparency across the supply chain and enhancing customer engagement. Four main barriers exist: developing and communicating the business case for DPP adoption, increased need for data, data standards and ensuring interoperability between systems, the extent of implementation effort needed and ensuring data security and integrity.
Originality/value
This is one of the earliest papers to concisely summarise the main drivers and barriers of DPP adoption and present a comprehensive research agenda for operations and supply chain management.
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Jesper Normann Asmussen, Jesper Kristensen, Kenn Steger-Jensen and Brian Vejrum Wæhrens
Significant transitions in firms (e.g. outsourcing) may impact the relative importance of production and inventory assets, affecting the hierarchical separation of planning…
Abstract
Purpose
Significant transitions in firms (e.g. outsourcing) may impact the relative importance of production and inventory assets, affecting the hierarchical separation of planning decisions. The purpose of this paper is to contribute to planning literature by investigating how the production system and the planning environment influence the performance difference between hierarchical and monolithic planning. Further, it seeks to reduce the prevailing theory-practice gap in tactical planning.
Design/methodology/approach
Through an action research study, a monolithic model integrating tactical production planning decisions, subject to upstream supply chain constraints, with strategic investments decisions was developed, tested and implemented in a global OEM. Using the developed model and a measure of the capital cost of production assets relative to the cost of holding inventory, it is numerically examined how the production system and planning environment influence the performance of hierarchical and monolithic planning.
Findings
The research demonstrates the potential of integrating decisions and reveals significant performance differences between hierarchical and monolithic planning for firms with low capital cost relative to inventory holding cost.
Research limitations/implications
The findings suggest a fit between planning processes, the production system and planning environment. Future research should empirically validate the findings and propositions.
Originality/value
The paper combine capital investments and production planning decisions, which usually transpire at different hierarchical levels and on different time-horizons, and investigates the consequences of hierarchical separation through a real-life validated case and numerical analysis.
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Mads Bejlegaard, Ioan-Matei Sarivan and Brian Vejrum Waehrens
This paper aims to investigate the impact of the strategic transformation of engineering to order company (ETO) at the level of the internal value-adding chain of operations on…
Abstract
Purpose
This paper aims to investigate the impact of the strategic transformation of engineering to order company (ETO) at the level of the internal value-adding chain of operations on its position as a sub-supplier. The transformation is motivated and enabled by end-to-end business intelligence related to processes revolving around the product’s design, configuration and engineering. The investigation builds on case-based research following the company’s decision of converting its product portfolio to only one family of products, thus increasing process efficiency whilst at the same time enlarging its market reach by offering individualized and innovative products. By digitally integrating operations related to sales, product development and production preparation, the traditional trade-off between cost-effective solutions with high product variety and low lead-time is significantly reduced.
Design/methodology/approach
A design science research project has been conducted to create knowledge on the effects of integration across the value-adding chain of operations. Several design cycles illustrate how development based on business intelligence and available technological enablers for inter-operation integration influence the traditional approach towards supply chain pipeline selection strategies.
Findings
Relating to digital transformation, the consequences and means of adopting digital business intelligence for integrating several administrative and engineering operations in small-medium enterprises (SME) are studied. The product delivery performance of the SME is improved, thus, having ETO lead-time comparable to manufacturing to order company. The findings show how the adoption of state-of-the-art technological solutions for cross-operation digital integration challenges traditional supply chain, coordination models.
Research limitations/implications
The conclusions are drawn based on a single case. The limitations associated with case-based research call for further work to support generalization. Furthermore, the long-term influence of the effects of increased interoperability on supply chain coordination strategies requires further investigation.
Practical implications
As technological solutions evolve, new opportunities for supply chain management arise, which put into question the traditional understanding that complex supply chain pipeline characteristics should be handled by complexity reducing initiatives, which opens up new competitive opportunities for companies in high-cost countries.
Social implications
Enabling the use of human resources towards expanding the business (rather than running it only) are aligned with the current economic and political situation in high-cost countries like Denmark and potentially releases skilled employees from repetitive and low value-adding work and reengages them in business development.
Originality/value
By embracing flexibility and volatility as an opportunity, this publication exemplifies how to move beyond hedging the supply chain volatility, but systematically enable the supply chain to deal with complexity efficiently.
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Henrik Saabye, Thomas Borup Kristensen and Brian Vejrum Wæhrens
This paper investigates how manufacturers can develop a learning-to-learn capability for enabling Industry 4.0 adoption.
Abstract
Purpose
This paper investigates how manufacturers can develop a learning-to-learn capability for enabling Industry 4.0 adoption.
Design/methodology/approach
This research design is guided by our research question: How can manufacturers develop a learning-to-learn capability that enables Industry 4.0 adoption? The authors adopt action research to generate actionable knowledge from a two-year-long action learning intervention at the Danish rooftop window manufacturer VELUX.
Findings
Drawing on emergent insights from the action learning intervention, it was found that a learning-to-learn capability based on lean was a core construct and enabler for manufacturers to adopt Industry 4.0 successfully. Institutionalizing an organizational learning scaffold encompassing the intertwined learning processes of systems Alpha, Beta and Gamma served as a significant way to develop a learning-to-learn capability for Industry 4.0 adoption (systematic problem-solving abilities, leaders as learning facilitators, presence of a supportive learning environment and Industry 4.0 knowledge). Moreover, group coaching is a practical action learning intervention for invoking system Gamma and developing leaders to become learning facilitators – an essential leadership role during Industry 4.0 adoption.
Originality/value
The study contributes to theory and practice by adopting action research and action learning to explore learning-to-learn as a core construct for enabling Industry 4.0 adoption and providing a set of conditions for developing a learning-to-learn capability. Furthermore, the study reveals that leaders are required to act as learning facilitators instead of relying on learning about and implementing Industry 4.0 best practices for enabling adoption.
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Fazli Haleem, Sami Farooq, Brian Vejrum Wæhrens and Harry Boer
Many factors have been identified that may drive a firm’s decision to offshore production activities. The actual performance effects of offshoring, however, depend on the extent…
Abstract
Purpose
Many factors have been identified that may drive a firm’s decision to offshore production activities. The actual performance effects of offshoring, however, depend on the extent to which these drivers are realized. Furthermore, the question is how risk management helps mitigating the risk involved in offshoring ventures, thus leading to better performance outcomes. The purpose of this study is to investigate the extent to which realized offshoring drivers and risk management mediate the relationship between offshoring experience and firm performance.
Design/methodology/approach
Data from the Global Operations Networks project, a cross-sectional survey administered in Denmark and Sweden, are used to test two hypotheses on the mediating role of realized offshoring drivers and risk management in the relationship between offshoring experience and firm performance. AMOS version 23 is used to perform the analyses.
Findings
The results demonstrate that realized offshoring drivers fully mediate the relationship between offshoring experience and firm performance. However, risk management does not mediate the relationship between offshoring experience and firm performance.
Originality/value
This study develops new theory on, and managerial insight into, the mediating role of realized offshoring drivers and risk management in the relationship between offshoring experience and firm performance.
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