Torbjørn Hekneby and Daryl John Powell
This study aims to investigate the impact of a company-specific lean program (a so-called company-specific production system [XPS]) on the company’s financial performance. This…
Abstract
Purpose
This study aims to investigate the impact of a company-specific lean program (a so-called company-specific production system [XPS]) on the company’s financial performance. This study analyzes data from the implementation of XPS in multiple plants of a multinational corporation and examines the results through an organizational learning lens.
Design/methodology/approach
This study adopts a longitudinal single-case design to investigate a Norwegian multinational company in the process industry, producing silicon for the global market. The company has developed, implemented and institutionalized its own XPS since 1991. The program has directly contributed to extensive cost reduction and significantly strengthened the organization’s competitive position.
Findings
The findings of this study show a link between organizational learning and the improvement of financial results in the organization. This study presents a sand cone model that illustrates how the development and deployment of an XPS through individual- and orchestrated learning subsequently created a common platform for institutionalized learning within and across the multinational organization. This organizational learning capability managed to tie the company’s continuous improvement efforts directly to the improvement of cost levels throughout the value chain.
Practical implications
The practical implications of this work are significant, as this study uncovers the importance for managers to consider both individual-, orchestrated- and institutionalized learning (within and across a multinational network) when designing and implementing XPS to drive the improvement of an organization’s financial performance.
Originality/value
Documenting the financial impact of such programs is a common challenge. Therefore, the insights presented in this research are of value to both researchers and practitioners, in particular, managers and executives in large multinational organizations.
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Keywords
Torbjørn Hekneby, Jonas A. Ingvaldsen and Jos Benders
Companies create company-specific production systems (XPS) by tailoring generic concepts to fit their unique situation. However, little is known about how an XPS is created. This…
Abstract
Purpose
Companies create company-specific production systems (XPS) by tailoring generic concepts to fit their unique situation. However, little is known about how an XPS is created. This paper aims to provide insights into the creation of an XPS.
Design/methodology/approach
A retrospective case study was conducted in a Norwegian multinational company over the period 1991–2006, using archival data and interviews.
Findings
The development of the XPS did not start with a master plan. Instead, dispersed existing initiatives were built upon, along with an external search for novel ideas. Widespread experimentation took place, only later to be combined into a coherent approach. Once established, the XPS was disseminated internally and further refined. The CEO orchestrated the experimentation by facilitating the adaptation and combination of different concepts and by allocating resources to institutionalize the XPS in the global network.
Originality/value
This paper is the first to study how an XPS is created. This study contributes with novel empirical insights, and it highlights the role of top management in facilitating experimentation and step-by-step organizational learning.
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Torbjørn Hekneby and Trude Høgvold Olsen
This paper aims to conceptualize the role of leadership in organizational learning processes in multinational companies (MNCs). The authors present a model describing how managers…
Abstract
Purpose
This paper aims to conceptualize the role of leadership in organizational learning processes in multinational companies (MNCs). The authors present a model describing how managers in an MNC facilitated transitions between sub-processes of organizational learning at several organizational levels.
Design/methodology/approach
The authors collected data from the plants of a global process company in Norway, Brazil and China. Observation, in-depth interviews and archival material enabled one to reconstruct the organizational learning process over a period of 30 years as the company developed its own tailor-made improvement programme.
Findings
Based on the data, the authors describe the role of leadership in linking the sub-processes of organizational learning as orchestration, sponsoring and persistence. Orchestration included creating faith and optimism and designing the organization to allow close cooperation between operators and managers in the sub-process of experimenting. This eased transferring and institutionalizing in the global organization. Sponsoring included structural changes to support transferring and the demonstration of dedication to improvement programme values. These factors were important for institutionalizing. Persistence involved the continuous focus on adjustment of the improvement programme, which then facilitated further experimenting.
Originality/value
Firstly, this study suggests that activities and decisions in one sub-process have important implications for the following sub-processes. Secondly, this study indicates that leaders’ role in facilitating the transitions between sub-processes extend beyond their individual traits and behaviour, which previous research had focused on, and includes decisions concerning organizational structure and culture that help link social and organizational learning.
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This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Abstract
Purpose
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
Through actively involving themselves with their employees and fostering creativity, leaders can facilitate powerful organizational learning with transformative implications.
Originality/value
The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy- to-digest format.
Details
Keywords
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Abstract
Purpose
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
Leadership plays a fundamental role in facilitating learning within an organization. Individual managers who utilize elements of both transformational and transactional leadership styles complemented by decision-making and organization skills can drive learning through the subprocesses of experimenting to acquire knowledge and then transferring and institutionalizing the learning that ensues.
Originality/value
The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format