In the automobile industry, the variety of vehicles produced continues to increase. At the same time, historically firms have incurred a sizeable productivity penalty for…
Abstract
Purpose
In the automobile industry, the variety of vehicles produced continues to increase. At the same time, historically firms have incurred a sizeable productivity penalty for producing more variety in their plants. The purpose of this paper is to answer the question: what actions have firms taken to control this productivity penalty and what were the costs?
Design/methodology/approach
Estimate a number of statistical models of the effect of variety on productivity for a sample that includes almost all assembly plants in North America from 1994 to 2004.
Findings
Evidence is found for fixed costs associated with activities that are complementary to producing variety and for a trade‐off between scale economies and flexibility.
Research limitations/implications
Provides evidence that while flexibility has an advantage to cope with increasing variety, there are non‐negligible costs as well.
Originality/value
A first systematic evaluation on the scale‐scope trade‐off and a quantification of the gains from production flexibility in the automotive industry.
Details
Keywords
Anisur R. Faroque, Olli Kuivalainen, Jashim Uddin Ahmed, Mahabubur Rahman, Hiran Roy, M. Yunus Ali and Md Imtiaz Mostafiz
Although both institutional export assistance and entrepreneurial orientation (EO) contribute separately and positively to export performance, the interplay between them has…
Abstract
Purpose
Although both institutional export assistance and entrepreneurial orientation (EO) contribute separately and positively to export performance, the interplay between them has received little attention. This study examines the role of international EO in deriving performance benefits from governmental and nongovernmental export assistance.
Design/methodology/approach
In this longitudinal study, two surveys were administered at two different times: In 2011, 705 Bangladeshi apparel exporters were surveyed, and in 2019, a subsequent survey of 198 firms in multiple industries was conducted. The aim of the surveys was to assess the relationships between governmental and nongovernmental assistance, EO and export performance.
Findings
The results of the first survey show that, while nongovernmental assistance influences performance directly and via EO, governmental assistance has only direct effects. Furthermore, the negative influence of government assistance on EO reduces the total effects and renders them nonsignificant. The results of the second survey demonstrate that government EPPs have both direct and indirect positive and significant effects on market performance, indicating a partial mediation, whereas quasi-governmental assistance has positive and significant direct effects as well as negative but nonsignificant indirect effects. Nongovernmental EPPs have both direct and indirect significant effects on international performance, indicating a partial mediation.
Research limitations/implications
The study has important implications for researchers studying export assistance and its impact on firm performance. Instead of adopting a parochial view of government assistance, this study categorizes such assistance into three types – government, quasi-government and nongovernment. Furthermore, this study bridges the export assistance and international entrepreneurship literature by including EO.
Practical implications
Entrepreneurs must emphasize the use of government assistance in order to enhance export performance. However, to promote both entrepreneurship and performance, they must emphasize nongovernment assistance. Exporters should also capitalize on the assistance extended by various quasi-governmental agencies to bolster export performance.
Originality/value
Given the performance advantage of export assistance, this study highlights the contribution of the private sector in promoting export entrepreneurship while shedding light on the pernicious role of (quasi-)governmental assistance in export entrepreneurship.
Details
Keywords
The purpose of this paper is to develop a holistic approach to the assessment of dynamic capabilities (DCs). Holistic refers to incorporating all DCs of an organisation relevant…
Abstract
Purpose
The purpose of this paper is to develop a holistic approach to the assessment of dynamic capabilities (DCs). Holistic refers to incorporating all DCs of an organisation relevant for determining and executing the firm's strategy.
Design/methodology/approach
A two-phase study was conducted. First, secondary sources, such as media, industry and annual reports, are being used to initially assess CASE (connected, autonomous, shared and electric) and implications for incumbent car manufacturers in a structured way. Second, semi-structured interviews with automotive managers and further automotive stakeholders offer in-depth insights into CASE, as well as incumbents' strategies and the underlying rationale.
Findings
The proposed framework for assessing DCs offers a holistic approach and provides new angles of analysis. First, the time dimension is considered using scenarios since timing is vital in strategy and implementation. Second, capabilities are broken down into technological and non-technological, sharpening strategic decision-making of automakers. Third, the analysis considers external VUCA (volatility, uncertainty, complexity and ambiguity) as they interplay with internal DCs.
Research limitations/implications
Further testing of the proposed DC assessment approach offers a promising opportunity for future research. This paper focuses on the automotive industry, but it is worth investigating the extent to which the approach can be used in other dynamic industries, such as finance or retail.
Originality/value
The approach proposed highlights the importance and nuances of considering external perspectives in the DC assessment and the relevance of non-technological capabilities in the automotive industry. Thereby, it contributes to the literature on capability assessments and the operationalisability of the DC lens.