Jan Stentoft, Kristian Philipsen, Anders Haug and Kent Adsbøll Wickstrøm
Additive manufacturing (AM) is one technology among the many under the umbrella of Industry 4.0 technologies. AM is developing rapidly, and extant research reveals that the…
Abstract
Purpose
Additive manufacturing (AM) is one technology among the many under the umbrella of Industry 4.0 technologies. AM is developing rapidly, and extant research reveals that the technology contains possibilities for firms to develop competitive advantages, but that it also poses several challenges to overcome before such benefits can be achieved. To provide further insight into this topic, this paper aims to analyse how a business association can disseminate knowledge and experience about AM to its members.
Design/methodology/approach
The paper is based on 13 interviews from 11 different organisations within an embedded single-case study of a Danish non-profit business association.
Findings
The paper identifies 12 motivational factors for joining the association as well as seven perceived challenges in the current setup of the association. The paper demonstrates that barriers to the use of AM can be reduced through participation in a business association.
Research limitations/implications
The paper is based on a single-case study design and does not provide a foundation for statistical generalisations. The challenges identified are biased towards the companies that are members and do not represent companies that either consciously or unconsciously are not part of the association.
Practical implications
Being aware of the barriers for AM is important to optimize the benefits of joining a business association. However, operating such an association with the purpose of disseminating AM knowledge involves the inherent dilemma of protecting knowledge for the individual members, and at the same time, fostering knowledge sharing.
Originality/value
The paper provides novel data on how a business association can help mitigate perceived barriers to using AM.
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Anders Haug, Kent Adsbøll Wickstrøm, Jan Stentoft and Kristian Philipsen
Previous studies investigating the effects of using social media in the innovation processes of small and medium-sized enterprises (SMEs) yield mixed results, and the conditions…
Abstract
Purpose
Previous studies investigating the effects of using social media in the innovation processes of small and medium-sized enterprises (SMEs) yield mixed results, and the conditions for achieving innovation benefits from social media are unclear. The present study seeks to contribute to the understanding of this topic.
Design/methodology/approach
With a basis in the literature on open innovation and SMEs, this study develops a model that explains the role of social media in product innovation processes where technological focus and abilities are converted into product innovations. The model is tested through a survey of 305 Danish manufacturing SMEs.
Findings
Findings show that SMEs with higher technological orientation (TO) are more inclined to use social media in their product innovation processes and that social media use explains 22.4 percent of the relationship between TO and product innovation performance. On the other hand, the data did not support the assumption that SMEs with high TO achieve higher product innovation benefits than low TO SMEs for similar levels of social media use.
Practical implications
The results suggest that SMEs with lower levels of TO could increase their product innovation performance through increased use of social media in their innovation processes.
Originality/value
The study provides new knowledge on the role of social media in SMEs’ product innovation processes. As the level of TO increases, the use of social media in the innovation process becomes an increasingly important mechanism for deriving the full innovation potential from technological focus and abilities.
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Jan Stentoft, Kent Adsbøll Wickstrøm, Anders Haug and Kristian Philipsen
The digital transition process is an important strategic initiative for manufacturing companies to ensure continued competitiveness. The purpose is to investigate the relationship…
Abstract
Purpose
The digital transition process is an important strategic initiative for manufacturing companies to ensure continued competitiveness. The purpose is to investigate the relationship between firms' additive manufacturing (AM) readiness and product and process innovation and how this process is mediated by firms' make-or-buy decisions regarding performing AM processes internally or buying AM services from external partners.
Design/methodology/approach
The paper is based on a questionnaire survey including full answers from 157 small- and medium-sized manufacturing companies.
Findings
Results show a positive relationship between AM readiness and both product and process innovation. Results also reveal that firms with higher readiness invest more in in-house AM, which in turn promotes innovation. There was no significant association between AM readiness and the use of external AM services. Nonetheless, buying external AM services is still associated positively with innovation.
Research limitations/implications
Data in the questionnaire survey are provided by single respondents from each company and are only based on Danish respondents.
Practical implications
The results indicate that firms' product and process innovation benefits from higher AM readiness derive from increased investment in in-house AM rather than from increased use of external AM services. This also signifies that firms with lower levels of AM readiness buy external AM services and derive the innovation benefits hereof.
Originality/value
The paper delivers new, empirically found knowledge about how small- and medium-sized manufacturing can improve innovation by both making and buying AM services.
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Kent Adsbøll Wickstrøm and Torben Eli Bager
This study examines the relationship between small-firm managers' propensity to participate in a growth-oriented training program and their subsequent program outcome in terms of…
Abstract
Purpose
This study examines the relationship between small-firm managers' propensity to participate in a growth-oriented training program and their subsequent program outcome in terms of strategic reorientation. From a policy perspective, this relates to the important question of what benefit would come from recruiting managers who are normally not easily recruitable for training programs.
Design/methodology/approach
A control group design including pre- and post-training surveys is used to assess the effects of a large-scale management training program. Accounting for selection bias, the difference-in-difference method, together with propensity score matching, was applied to assess average program effects. The matching-smoothing method was used to assess heterogeneity in program effects associated with participation propensity.
Findings
Overall, program participation associated positively with change in strategic orientations. This effect was especially pronounced for managers with either low or medium to high inclinations for program enrollment, while diminishing in the modest to medium range.
Practical implications
The findings have important practical implications for selection of target groups and recruitment strategies in relation to small-firm management training programs. From the results, recruitment strategies may effectively include managers with either high or low participation propensities, rather than aiming to “fill up” with managers with moderately low participation propensity.
Originality/value
Several extant studies have examined average treatment effects from small-firm training programs. Yet there has been a lack of examination of the extent to which participation propensity modifies the effect of training on outcomes. This study brings new knowledge of the direction and magnitude of such heterogeneous training effects.
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Jan Stentoft, Kent Adsbøll Wickstrøm, Anders Haug and Kristian Philipsen
The purpose of this paper is to advance the understanding of how Industry 4.0 related technologies affect the relocation of manufacturing abroad by small and medium-sized…
Abstract
Purpose
The purpose of this paper is to advance the understanding of how Industry 4.0 related technologies affect the relocation of manufacturing abroad by small and medium-sized enterprises.
Design/methodology/approach
This paper contains an empirical analysis of how Industry 4.0 related technologies affect the cost-driven relocation of manufacturing abroad based on 191 comprehensive and full responses to a questionnaire survey distributed in 2018 among small- and medium-sized Danish manufacturers.
Findings
This paper builds upon data, which reveals that companies' pursuit of cost-focused competitive strategies is positively correlated with relocating manufacturing abroad. However, the data also shows that the more Industry 4.0-ready decision-makers are, the less cost-focused strategy drives manufacturing abroad. Furthermore, perceived barriers to Industry 4.0 related technologies promote the cost-driven relocation of manufacturing abroad whereas perceived drivers decrease this phenomenon.
Research limitations/implications
This paper is based on the answers given by a single respondent from each company and only on Danish respondents.
Practical implications
The results indicate a need to invest resources to obtain a better knowledge of Industry 4.0 related technologies when used in processes involved in decisions about where to locate manufacturing.
Originality/value
This paper contains new, empirically founded information about how Industry 4.0 related technologies affect the cost-driven relocation of manufacturing abroad from the perspective of small- and medium-sized manufacturers.
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Jan Stentoft, Ole Stegmann Mikkelsen and Kent Adsbøll Wickstrøm
The purpose of this paper is to investigate the relationships of supply chain resilience (SCR) and absorptive capacity (ACAP) with firm performance by specifically examining the…
Abstract
Purpose
The purpose of this paper is to investigate the relationships of supply chain resilience (SCR) and absorptive capacity (ACAP) with firm performance by specifically examining the crisis-mitigating effects under an environmental jolt such as COVID-19.
Design/methodology/approach
This paper is based on data from a questionnaire survey among Danish manufacturing and transport and logistics companies with 174 respondents.
Findings
While the adaptive capabilities associated with both SCR and ACAP are well recognized in extant SCM literature, less is known about their boundary conditions. Examining the functioning of SCR and ACAP amid the COVID-19 crisis, this study finds that both SCR and ACAP related positively to firm performance. However, while the positive relationship between SCR and firm performance was partly mediated by better crisis-mitigation, the results of this study did not find that a similar mechanism was present for ACAP. These results suggest notable refinements of current understandings of SCR and ACAP.
Research limitations/implications
This study is limited by the cross-sectional design, the focus on Danish companies only, and by examining only two industries. Hence, comparisons to other countries and other industries would be of significant interest.
Practical implications
Investing in SCR and ACAP to different extents provides for a complementary mix of longer-term opportunity-generating dynamic capabilities and more short-term crisis-mitigating dynamic capabilities. Firms will benefit from both types of dynamic capabilities during a crisis, but the latter will be more important for mitigating specific crisis impacts.
Originality/value
This paper extends current theorizing on ACAP and SCR by adding the distinction between the long-term opportunity generating dynamic capabilities and short-term crisis-mitigating dynamic capabilities. This paper provides novelty by empirically examining this theorizing by investigating the performance- and crisis-mitigating effect of SCR and ACAP in the light of the COVID-19 crisis.
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Md Faizal Ahmad, Muhammad Ashraf Fauzi, Mohamad Reeduan Mustapha, Puteri Fadzline Muhamad Tamyez, Amirul Syafiq Sadun, Idris Gautama So and Anderes Gui
This study comprehensively reviews the Fourth Industrial Revolution, which refers to Industry 4.0 (IR 4.0) applications in small and medium enterprises (SMEs). Multinational…
Abstract
Purpose
This study comprehensively reviews the Fourth Industrial Revolution, which refers to Industry 4.0 (IR 4.0) applications in small and medium enterprises (SMEs). Multinational companies and big corporations have the capacity and resources to implement IR 4.0, but SMEs are limited due to financial constraints, expertise and lack of resources. Even so, IR 4.0 is required as technologies evolve and market demand has changed how firms do business.
Design/methodology/approach
To uncover the potential of IR 4.0 and critical determinants of SMEs’ adoption of IR 4.0, this study presents a bibliometric analysis to evaluate the current research streams in IR 4.0 adoption among SMEs through bibliographic coupling. Furthermore, this review provides a glimpse of the future by analyzing prospective trends on IR 4.0 in SMEs.
Findings
Bibliographic coupling produces five clusters: (1) challenges and barriers in IR 4.0 implementation among SMEs, (2) technological adoption of IR 4.0, (3) opportunities and benefits of IR 4.0, (4) business model innovation and (5) implication of IR 4.0 on SMEs technologies. On the contrary, co-word analysis produces three clusters: (1) technologies in IR 4.0, (2) strategy and management of IR 4.0 among SMEs and (3) IR 4.0 model for SMEs.
Research limitations/implications
Implications are directly related to business owners, policymakers and technology developers meeting the needs of the industry and SMEs, which are the focus of this review.
Originality/value
The findings contribute significantly to the body of knowledge by presenting a state-of-the-art science mapping approach to uncover the knowledge structure and intellectual linkage of IR 4.0 adoption within SMEs.
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Morteza Ghobakhloo and Mohammad Iranmanesh
The digital transformation under Industry 4.0 is complex and resource-intensive, making a strategic digitalization guideline vital to small and medium-sized enterprises' success…
Abstract
Purpose
The digital transformation under Industry 4.0 is complex and resource-intensive, making a strategic digitalization guideline vital to small and medium-sized enterprises' success in the Industry 4.0 transition. The present study aims to provide manufacturing small and medium-sized enterprises (SMEs) with a guideline for digital transformation success under Industry 4.0.
Design/methodology/approach
The study first performed a content-centric literature review to identify digital transformation success determinants. The study further implemented interpretive structural modeling to extract the order at which the success determinants should be present to facilitate the SMEs’ digital transformation success optimally. The interpretive model and interpretive logic knowledge base matrix were also used for developing the digital transformation guideline.
Findings
Eleven success determinants are vital to SMEs’ digital transformation efforts. For example, results revealed that external support for digitalization is the first step in ensuring digital transformation success among SMEs, while operations technology readiness is the most inaccessible success determinant.
Research limitations/implications
The study highlights the degree of importance of the 11 success determinants identified, which magnifies each determinant's strategic priority based on its driving power and dependence power. Theorizing the dependent variable of “digital transformation success” and quantitatively measuring the extent to which each success determinant contributes to explaining “digital transformation success” offers an exciting opportunity for future research.
Practical implications
Digital transformation success phenomenon within the Industry 4.0 context is significantly different from the digitalization success concept within the traditional literature. The digital transformation under Industry 4.0 is immensely resource-intensive and complex. Smaller manufacturers must have specific capabilities such as change management and digitalization strategic planning capability to reach a certain degree of information, digital, operations and cyber maturity.
Originality/value
The digital transformation success guide developed in the study describes each success determinants' functionality in relation to other determinants and explains how they might contribute to the digital transformation success within the manufacturing sector. This guide enables smaller manufacturers to better understand the concept of manufacturing digital transformation under Industry 4.0 and devise robust strategies to steer their digital transformation process effectively.