Marco Opazo-Basáez, Ferran Vendrell-Herrero, Oscar F. Bustinza, Yancy Vaillant and Josip Marić
The implementation of Smart Manufacturing (SM) is deemed a key enabler in the enhancement of manufacturing competitiveness and performance. Nevertheless, SM's repercussion on…
Abstract
Purpose
The implementation of Smart Manufacturing (SM) is deemed a key enabler in the enhancement of manufacturing competitiveness and performance. Nevertheless, SM's repercussion on consumer perceptions and the contextualization of SM's performance-enhancement effects remain undetermined and have yet to be clarified. This study analyzes the effect of SM on operational and customer performance. Moreover, this study explores how these relationships change depending on a firm's geography of production (i.e. national/local vs transnational operations) and the relational arrangement adopted (i.e. service-oriented vs transaction-oriented manufacturers).
Design/methodology/approach
This research surveys 351 Spanish manufacturing firms operating in an SM environment. The theoretical framework comprises a Multiple-Indicators Multiple-Causes (MIMIC) model and is tested using a Generalized Structural Equations Model.
Findings
The results obtained substantiate the positive effect of SM implementation on both of the performance measures analyzed (i.e. operational and customer focused). Moreover, the study reveals that while geography of production moderates the effect on a firm's operational performance, relational arrangement also does so in terms of customer performance.
Originality/value
This research clearly differentiates the benefits of SM depending on business context. In this regard, transnational production firms tend to gain in operational performance while service-oriented manufacturers gain in customer performance.
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Ferran Vendrell-Herrero, Marco Opazo-Basáez and Josip Marić
This article seeks to characterize and assess a new type of resilient, socially conscious and competitive enterprise that simultaneously encompasses open and social innovation �…
Abstract
Purpose
This article seeks to characterize and assess a new type of resilient, socially conscious and competitive enterprise that simultaneously encompasses open and social innovation – aligning both business and social outcomes – and which will gain increasing importance in post-pandemic competitiveness.
Design/methodology/approach
A mixed method approach based on sequential deductive triangulation analysis (QUAN/qual) is used. First, data gathered from the Chilean innovation survey is used to quantify the percentage of firms implementing open and social innovation simultaneously, and to assess their relative performance in relation to other types of innovative firms. Second, a qualitative multiple-case study analysis reveals the perceptions of senior managers regarding the applicability of this approach in terms of building resilience and strengthening future competitiveness in line with sustainable development goals.
Findings
Social innovation is a relatively rare event (7.2% of firms in the sample). While social innovation occurs equally in monopolistic and perfectly competitive industries, the authors’ findings suggest that in order to adopt social and open innovation effectively, firms need to set entry barriers such as economies of scale. On the other hand, open innovation is a more common event (15.4% of firms in the sample), which correlates closely with absolute and relative performance indicators. Moreover, the results suggest that open innovation enables a greater understanding of societal needs, thus making social innovation more effective.
Research limitations/implications
Theoretical developments coupled with descriptive and qualitative evidence reveal the innovative capabilities that up-and-coming enterprises may possess. The findings suggest that at times of far-reaching technological, social and political change, enterprises should share some of their knowledge and resources with wider society. Only then will more equal, resilient and cohesive societies be built.
Originality/value
This article combines two seemingly unrelated literature streams (open and social innovation) in order to elucidate the enterprise of tomorrow, which will be capable of achieving sustainable development whilst reaching high levels of competitiveness.
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Ferran Vendrell-Herrero, Emanuel Gomes, Marco Opazo-Basaez and Oscar F. Bustinza
The purpose of this paper is to distinguish clearly between industry (ILC) and product lifecycle (PLC) models and to elucidate their different ramifications for organizational…
Abstract
Purpose
The purpose of this paper is to distinguish clearly between industry (ILC) and product lifecycle (PLC) models and to elucidate their different ramifications for organizational learning and knowledge.
Design/methodology/approach
The authors examine existing knowledge on ILCs and PLCs to highlight the differences and similarities and develop a framework with implications for learning and innovation in digital manufacturing industries.
Findings
The authors identify and associate one dominant type of learning with each phase of the ILC: learning-by-participating in the introduction phase, learning-by-feedback in the growth phase, vicarious learning in the maturity phase and learning-by-memory in the decline phase. The study also provides insight into how different types of learning influence PLC in digital innovation. From this perspective, learning-by-feedback is crucial to co-creation, co-production and open innovation. Similarly, learning-by-doing and learning-by-memory are essential to production and usage stages, respectively.
Research limitations/implications
The conceptual development in this paper follows a somewhat critical but ultimately elucidative analysis that highlights important research avenues in the interplay of PLC/ILC, organizational learning and digital innovation.
Originality/value
This paper clarifies a perennial theoretical problem by differentiating two concepts often conflated in the literature. More importantly, it contributes to the knowledge management literature by shedding light on the connection of ILC and PLC theories to different types of organizational learning.
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Marco Opazo Basáez, Ferran Vendrell-Herrero, Oscar F. Bustinza and Chris Raddats
Jean Pierre Seclen-Luna, Marco Opazo-Basáez, Lorea Narvaiza and Pablo Jose Moya Fernández
This paper aims to focus on the effects of human capital composition, innovation portfolio and size on manufacturing firms’ performance. Moreover, it seeks to empirically identify…
Abstract
Purpose
This paper aims to focus on the effects of human capital composition, innovation portfolio and size on manufacturing firms’ performance. Moreover, it seeks to empirically identify the levels of education that are significant in labour productivity.
Design/methodology/approach
The resource-based view (RBV) theory is applied using data gathered from the National Innovation Survey in the Manufacturing Industries of Peru. Using the ordinary least squares method on a sample of 584 Peruvian manufacturing firms, the effects on firm performance of two subsamples according to innovation portfolio and firm size are determined.
Findings
The direct effects of human capital composition on productivity show that the higher the workers’ educational level, the higher the productivity. However, if this relationship is analysed in terms of the innovation portfolio, the authors find that labour productivity in companies with product–service innovation is greater (i.e. more significant) than in traditional manufacturing firms with only product innovations. Similarly, if this relationship is compared in terms of company, the authors find that large companies are more significant than small and medium-sized enterprises.
Practical implications
The study furthers the understanding of how the relationship between human capital composition, innovation portfolio and size of manufacturing firms positively affects labour productivity. Hence, it can help managers to craft their innovation portfolio according to the educational level of their human capital. This could require that not only human resource management innovates, but also that strategic partnerships be developed with educational establishments to boost training towards product–service innovation.
Originality/value
This study’s results provide confirmation that the configuration of human resources, innovation portfolio and size plays a significant role on manufacturing firms’ performance, particularly in the context of developing countries.
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Marco Opazo-Basáez, Ferran Vendrell-Herrero, Oscar F. Bustinza and Josip Marić
Global value chains (GVC) incorporate internationally fragmented sources of knowledge so as to increase global competitiveness and performance. This paper sheds light on the role…
Abstract
Purpose
Global value chains (GVC) incorporate internationally fragmented sources of knowledge so as to increase global competitiveness and performance. This paper sheds light on the role of Industry 4.0 technological capabilities in facilitating knowledge access from international linkages and improving firm productivity.
Design/methodology/approach
Drawing on organizational learning research, the present study argues that the relationship between GVC breadth, analyzed in respect to the geographical fragmentation of production facilities and productivity follows an inverted U-shaped pattern that can be explained by the interplay between external knowledge access and the coordination costs associated with GVC breadth. We test our predictions using a purpose-built survey that was carried out among a sample of 426 Spanish manufacturing firms.
Findings
Our results indicate that organizations adhering to a traditional manufacturing system are able to benefit from fewer transnational relationships (concretely 11 foreign facilities) in the search for productivity improvements. This can be largely attributed to the marginal value of the knowledge accessed and the costs of coordinating international counterparts' production and knowledge transfer. However, our study reveals that the adoption of Industry 4.0 technologies has the potential to broaden optimal GVC breadth, in terms of the number of linkages to interrelate with (concretely 131 foreign facilities) so as to obtain productivity gains while mitigating the complexities associated with coordination.
Originality/value
The study unveils that Industry 4.0 technologies enable management of broader GVC breadth, facilitating knowledge access and counteracting coordination costs from international counterparts.
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Marco Opazo-Basáez, Ferran Vendrell-Herrero and Oscar F. Bustinza
Existing innovation frameworks suggest that manufacturing firms have traditionally developed a complementary model of technological innovations comprising process and product…
Abstract
Purpose
Existing innovation frameworks suggest that manufacturing firms have traditionally developed a complementary model of technological innovations comprising process and product innovations (e.g. Oslo Manual). This article presents digital service innovation as a novel form of technological innovation that is capable of enhancing the performance of firms in certain manufacturing industries.
Design/methodology/approach
Drawing on technological innovation and digital servitization fields of research, this study argues that digital service innovation, in manufacturing contexts, complements traditional sources of technological innovation, so increasing the profit margins of firms. This effect is significant in industries characterized by business-to-business contexts, high presence of link channels and long product life spans (e.g. manufacturing and computer-based industries). Predictions are tested on a unique sample of 423 Spanish manufacturing firms using parametric (t-test) and nonparametric (fuzzy-set qualitative comparative analysis, fsQCA) approaches.
Findings
The results of this analysis show that a necessary condition so that manufacturing firms can increase profits is the deployment of simultaneous process and product innovations. It also reveals that optimal configuration requires that digital service innovation be undertaken, particularly in machinery and computer-based manufacturing industries. Hence, all three sources of technological innovation are brought together in order to reach the highest levels of company performance. The evidence suggests that technological innovation and digital servitization are closely interrelated in highly innovative manufacturing contexts.
Originality/value
This study's originality and value reside in the fact that it reveals the existence of firms incorporating digital service innovation – a new, technological innovation dimension that challenges existing innovation frameworks – to complement traditional technological innovation sources, namely process and product innovation. Moreover, the study conceptualizes and empirically tests the value-adding role of digital services in firms' technological innovation portfolio.
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Stephen L. Vargo, Julia A. Fehrer, Heiko Wieland and Angeline Nariswari
This paper addresses the growing fragmentation between traditional and digital service innovation (DSI) research and offers a unifying metatheoretical framework.
Abstract
Purpose
This paper addresses the growing fragmentation between traditional and digital service innovation (DSI) research and offers a unifying metatheoretical framework.
Design/methodology/approach
Grounded in service-dominant (S-D) logic's service ecosystems perspective, this study builds on an institutional and systemic, rather than product-centric and linear, conceptualization of value creation to offer a unifying framework for (digital) service innovation that applies to both physical and digital service provisions.
Findings
This paper questions the commonly perpetuated idea that DSI fundamentally changes the nature of innovation. Instead, it highlights resource liquification—the decoupling of information from the technologies that store, transmit, or process this information—as a distinguishing characteristic of DSI. Liquification, however, does not affect the relational and institutional nature of service innovation, which is always characterized by (1) the emergence of novel outcomes, (2) distributed governance and (3) symbiotic design. Instead, liquification makes these three characteristics more salient.
Originality/value
In presenting a cohesive service innovation framework, this study underscores that all innovation processes are rooted in combinatorial evolution. Here, service-providing actors (re)combine technologies (or more generally, institutions) to adapt their value cocreation practices. This research demonstrates that such (re)combinations exhibit emergence, distributed governance and symbiotic design. While these characteristics may initially seem novel and unique to DSI, it reveals that their fundamental mechanisms are not limited to digital service ecosystems. They are, in fact, integral to service innovation across virtual, physical and blended contexts. The study highlights the importance of exercising caution in assuming that the emergence of novel technologies, including digital technologies, necessitates a concurrent rethinking of the fundamental processes of service innovation.
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Faisal Rasool, Marco Greco, Gustavo Morales-Alonso and Ruth Carrasco-Gallego
This study aims to examine and understand the impact of reverse logistics adoption on firms' digitalization and collaboration activities. Specifically, leveraging the…
Abstract
Purpose
This study aims to examine and understand the impact of reverse logistics adoption on firms' digitalization and collaboration activities. Specifically, leveraging the knowledge-based view, this study examines how adopting sustainable logistic practices (reverse logistics) prepares firms to embrace digitalization and encourages them to collaborate with other organizations.
Design/methodology/approach
The study used longitudinal survey data from two waves (2017 and 2019) from the Mannheim Centre for European Economic Research. The authors used the negative binomial regression analyses to test the impact of reverse logistics adoption on the digitalization and inter-organizational collaboration dependent count variables.
Findings
The study's findings highlight the usefulness of reverse logistics in enabling digitalization and inter-organizational collaboration. The results show that the firms investing in sustainable supply chains will be better positioned to nurture digitalization and inter-organizational collaboration.
Practical implications
For resource-bound managers, this study provides an important insight into prioritizing activities by highlighting how reverse logistics can facilitate digitalization and collaboration. The study demonstrates that the knowledge generated by reverse logistics adoption can be an essential pillar and enabler toward achieving firms' digitalization and collaboration goals.
Originality/value
The study is among the first to examine the effect of reverse logistics adoption on firm activities that are not strictly associated with the circular economy (digitalization and collaboration). Utilizing the knowledge-based view, this study reports on the additional benefits of reverse logistics implementation previously not discussed in the literature.
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Gordon Liu, Weixi Liu and Wai Wai Ko
The authors examine the influence of planning and execution capability (PEC) and operational improvement capability (OIC) on small-and-medium-sized firms’ (SMEs) attainment of…
Abstract
Purpose
The authors examine the influence of planning and execution capability (PEC) and operational improvement capability (OIC) on small-and-medium-sized firms’ (SMEs) attainment of different innovation outcomes under the conditions of exports and formal business networks, based on the capability-based perspective and organisational learning literature.
Design/methodology/approach
The authors analyse time-series data about UK SMEs, extracted from the 2015 and 2016 UK Longitudinal Small Business Surveys (LSBS).
Findings
The authors failed to find any direct effects of PEC and OIC on product innovation outcomes. However, the authors discovered that OIC supports the generation of process innovation outputs more strongly than PEC. Additionally, exports and formal business networks provide SMEs with different learning opportunities. The authors find limited support that exports amplify the beneficial effect of PEC on product innovation outcomes more than formal business networks. On the other hand, formal business networks strengthen the effect of PEC on process innovation outcomes more than exports. As a result, exports reduce the beneficial effect of OIC on product innovation outcomes more than formal business networks. However, formal business networks weaken the beneficial effect of OIC more than exports.
Originality/value
The authors distinguish between two types of organisational capabilities – PEC and OIC – and examine their impact on SMEs in achieving innovation outcomes. The authors also identify SMEs’ involvement in exports and formal business networks as the important boundary conditions for such effects. xD; xA; xD; xA;