Eddie McAleer, Ronan McIvor, Paul Humphreys and Larry McCurry
Since the 1970s, international manufacturing companies, in pursuit of world‐class goals, have been adopting and adapting management practices developed originally in Japan…
Abstract
Since the 1970s, international manufacturing companies, in pursuit of world‐class goals, have been adopting and adapting management practices developed originally in Japan. Notable characteristics of such companies now include: a customer‐focused culture; a concentration on core competencies with high levels of outsourcing; an emphasis on team working and manufacturing cells; low levels of stock at all stages of assembly; frequent small deliveries by suppliers directly to the production areas; a supply base of relatively few suppliers; partnership agreements with key first‐tier suppliers. Such companies are aiming to produce goods of world‐class quality and to do so, given the large amounts of bought‐in components and sub‐systems, pay a great deal of attention to the supply network. As a result, the purchasing function in these companies, as the interface with suppliers, plays a crucial role in manufacturing strategy. It is thus important to determine what multinational manufacturing companies want from their suppliers, ie what constitutes the “total package” that they want to have supplied? To this end, a total quality‐based 15‐criteria model of this package was developed and pre‐tested with senior purchasing managers from multinational corporations (MNCs). Based on this model a survey of senior purchasing managers of 170 MNCs throughout Ireland was undertaken and this paper reports on the results from the 62 usable returns.
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The purpose of this paper is to determine the dimensions along which make or buy decision processes change over time.
Abstract
Purpose
The purpose of this paper is to determine the dimensions along which make or buy decision processes change over time.
Design/methodology/approach
The paper is based on a longitudinal in‐depth case study of a large industrial company, where the data were collected using interviews, documentation and observations. The data were analyzed using chronological patterns, and findings were then compared with the literature on make or buy decision processes.
Findings
Nine dimensions were found along which the make or buy decision process had changed over time. The dimensions were cross‐functionality, structure, regularity, formality, awareness, mandatory, information distribution and management and flexibility. The causes of the changes were related to a combination of company internal and external events and contexts.
Research limitations/implications
The findings should be seen as a first attempt in assisting in the creation of a foundation for constructing more dynamic make or buy decision process models. However, since the findings are based on a single case, they need to be complemented by more research in order to help determine how context sensitive the identified dimensions are.
Practical implications
The nine dimensions of change can be used as a checklist for managers in designing their decision process.
Originality/value
The paper adds to existing research, which takes a static viewpoint and does not include a dynamic perspective, in that, the longitudinal nature of our research creates opportunities for developing more dynamic make or buy decision process models. The paper clarifies how make or buy decision processes develop over time, and how they cannot be seen as a one‐time implementation but rather as a process that needs both structure and flexibility.
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Outsourcing has become part of organizational strategy for achieving efficiency and effectiveness. This study aims to examine outsourcing and public universities’ performance in…
Abstract
Purpose
Outsourcing has become part of organizational strategy for achieving efficiency and effectiveness. This study aims to examine outsourcing and public universities’ performance in Nigeria, the mediating effect of trust.
Design/methodology/approach
The study used 353 respondents as sample size drawn from 12 public universities across the six geo-political zones of the country. The study used partial least squares structural equation modeling (PLS-SEM) using ADANCO 2.0.1.
Findings
The study found significant relationships between outsourcing and quality of teaching and research (core activities) and outsourcing and the quality of other activities (non-core). Also, the study found a significant relationship between outsourcing and low-cost. While the study supports the position of transaction cost economics and relational theories, in contrast, it has not supported the core competence theory. Generally, the study found that outsourcing significantly affects public universities’ performance in Nigeria, and trust partially mediates the relationship.
Research limitations/implications
The study, such as any other research, has limitations. The study is only limited to public universities and the research has not included students in its survey.
Practical implications
Managers of public universities are always looking for ways to reduce costs and enhance the quality of their activities. This study has demonstrated the relevance of outsourcing activities in Nigerian Public Universities. Therefore, managers should focus on outsourcing in areas that have not been outsourced but have the potentials of efficiency and effectiveness if outsourced. Furthermore, the study broadens the understanding of promoting an environment of trust in outsourcing; therefore, managers should encourage trust with their vendors to achieve the desired outcomes of outsourcing.
Originality/value
This study examines the mediating effect of trust on the relationship between outsourcing and public universities’ performance in Nigeria empirically, drawing on the core and non-core activities of the universities. The study has contributed to the discourse on outsourcing and public universities’ performance in Nigeria. The study also unveiled the contribution of outsourcing activities in public universities in Nigeria, and how trust as a uni-dimensional construct mediates in achieving outsourcing that contributes to the public university system. Finally, the study also contributed to the understanding that universities can outsource some of their core competences and achieve performance.
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Tony Elliman and Graham Orange
This paper reviews the changing nature of construction design and the potential for e‐procurement to respond to these changes. With the emphasis shifting from supply‐driven to…
Abstract
This paper reviews the changing nature of construction design and the potential for e‐procurement to respond to these changes. With the emphasis shifting from supply‐driven to demand‐driven product design the trading relationships within the industry must become more complex. This paper hypothesizes an electronic market in design and supply capability to exploit distributed design knowledge within the supply chain. In their current form, e‐commerce and brokering systems are too immature to support such relationships, but many elements of a technical solution are available. However, how they will reshape working practices is uncertain and this poses architectural and human organization problems for information systems (IS) developers. They must anticipate and address changes in working practices across a whole group of industries competing within a complex market place. We postulate a development approach that uses simulation models supported by soft systems methods to explore these process re‐engineering options and human issues. The simulation of new business processes, combined with prototype IS designs, offers a powerful mechanism for evaluating the effects of proposed architectures for “design transactions” in e‐procurement. The open learning that occurs in simulation experiments is also a key element in helping the management of the individual organizations in understanding how to shape their particular contribution to the new collaborative process. A major barrier to enhancing construction industry performance in this way is the defensive nature of existing contracts and lack of trust between parties; we therefore propose the use of COLA process in parallel with the simulation work to engender trust and improved working relationships between the collaborating organizations.
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R.T. McIvor and P.K. Humphreys
Discusses a hybrid computer‐based system designed to assist companies in the make or buy decision, which is arguably the most fundamental component of manufacturing strategy. The…
Abstract
Discusses a hybrid computer‐based system designed to assist companies in the make or buy decision, which is arguably the most fundamental component of manufacturing strategy. The system employs both case‐based reasoning (CBR) and decision support system components including multi‐attribute analysis (MAA) and sensitivity analysis. As part of the development process, interviews were conducted with managers in ten multinational companies in order to determine current make or buy practice and elicit opinions on how the decision‐making process would be enhanced. The consensus was that a formal structure was needed along with computerised support at various stages in the process. The model was developed conceptually from the analysis of these interviews with procurement managers and also through a thorough literature survey. The next stage was to implement the most important components of the system to enable feedback from procurement managers in one of the multinationals first interviewed. The results indicate that the system supports the procurement function in evaluating the make or buy decision and has led to enhanced communication with suppliers as well as within the multi‐functional procurement team.
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The purpose of this paper is to investigate the nature of functional involvement in the cross‐functional make or buy decision process.
Abstract
Purpose
The purpose of this paper is to investigate the nature of functional involvement in the cross‐functional make or buy decision process.
Design/methodology/approach
The paper is based on literature within the areas of cross‐functional make or buy decision processes as well as cross‐functional process research in general. The empirical part of the paper is a longitudinal and in‐depth case study, where the data are collected using interviews, documentation and observations. The data are analyzed using chronological patterns.
Findings
Findings indicate a changing pattern between close collaborative integration during decision‐making phases and more interaction‐focused integration during data‐gathering phases. The benefits of this integration pattern mainly lay in the effective use of resources combined with increased decision quality.
Research limitations/implications
The results are based on a large manufacturing company that produces complex products. It can be suggested that the scene researched by the authors may be common for companies in the same environment. However, it is a limited sample and future research would benefit from investigating different environments to establish whether the results are context‐specific or not.
Practical implications
Five phases are found in the make or buy decision process where resources are used differently. Also, different functions have different roles during these phases in order not to drain resources.
Originality/value
The paper helps clarify how functions integrate and use resources during different phases of the make or buy decision process and the cross‐functional benefits and effects. A conceptual model is developed that explains the effect of functional involvement during different types of integration.
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Kittipong Suweero, Wutthipong Moungnoi and Chotchai Charoenngam
Building operation and maintenance (BOM) services are important activities for highly competitive businesses. In addition, outsourcing decision factors are key to the…
Abstract
Purpose
Building operation and maintenance (BOM) services are important activities for highly competitive businesses. In addition, outsourcing decision factors are key to the effectiveness of BOM. Hence, the purpose of this paper is to identify and prioritize the decision factors that affect outsourcing decision factors for BOM services, to elicit the different perceptions of each managerial group (shopping centers, hotels, and hospitals), and to categorize the important outsourced BOM decision factors.
Design/methodology/approach
On the basis of the literature review, the authors observed that there are 56 outsourcing decision factors in six groups. The survey included 105 of the largest and most competitive companies in Bangkok, Thailand. The statistical methods applied were the relative importance index (RII), t-test, one-way analysis of variance (ANOVA), and factor analysis (FA).
Findings
The findings show that the three participant groups are different in some respects, as shown by their RII values. After ranking the RII values, the top 15 factors for each participant group were used to compare the participant groups using the t-test and one-way ANOVA, which confirmed their respective similarities and differences. Through an FA, the top reasons that each business outsourced BOM services were grouped into major categories.
Originality/value
The results of this research will not only facilitate an understanding of the related decision factors used by each particular business in the commercial sector but will also assist outsourcing companies in identifying and improving support services for businesses.
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Paul Humphreys, Ronan McIvor and Trevor Cadden
The purpose of this article is to examine how electronic commerce can fundamentally change the inter‐organisational processes at the interface between the buyer and supplier.
Abstract
Purpose
The purpose of this article is to examine how electronic commerce can fundamentally change the inter‐organisational processes at the interface between the buyer and supplier.
Design/methodology/approach
First, an overview is provided of the evolution of B2B commerce and the typical business models that have been developed. Second, a number of factors are identified which impact on the buyer‐supplier interface in B2B commerce. Finally, the conclusions will examine the implications for managers involved in B2B commerce who have to interact across organisational boundaries.
Findings
Electronic commerce not only enables the redesign of internal organisational processes but is extended into both the buyer and supplier organisations. Innovations in electronic commerce have a key role to play in managing inter‐organisational networks of supply chain members. It is also found that in many instances electronic commerce is radically changing the way in which organisations have traditionally traded. As well as impacting the external trading arrangements between buyers and suppliers, electronic commerce is also affecting the traditional roles of the functions involved in managing the buyer/supplier relationship.
Practical implications
It is essential for top management to understand that the internet is more than a tool or technique, but rather something that is woven into the fabric of the organisation and the relationship with its environment. Adopting such an approach represents a drastic change from traditional management thinking and, more importantly, for management's behaviour.
Originality/value
This paper provides an improved understanding of how the internet represents a powerful technology for commerce and communication at the buyer‐supplier interface. This will be a useful insight for academics and practitioners alike.
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R.T. McIvor, P.K. Humphreys and W.E. McAleer
The objective of this paper is to examine changes in the European car industry and in particular the impact these changes are having on the car makers and their relationships with…
Abstract
The objective of this paper is to examine changes in the European car industry and in particular the impact these changes are having on the car makers and their relationships with their suppliers. With excess production capacity and the poor outlook for car sales, the European car industry requires structural changes to balance supply and demand. In an effort to address these problems, the car makers are re‐appraising their relations with their suppliers. They are now pursuing more intensive and interactive relationships with their suppliers, collaborating in areas such as new product development, supplier development, and information sharing on a range of issues. However, there is evidence to illustrate that there is a lack of trust between the car makers and their suppliers. It is argued that if the European car makers are to compete globally then there will have to be more trust and co‐operation between the car makers and the components industry.