Caron H. St. John

Manufacturing-based relatedness, synergy, and coordination

This paper explores the basic question of whether manufacturing-based relatedness between business units within a multibusiness firm serves as a basis for a competitive advantage at the business unit level. We developed a system for describing manufacturing relatedness that combines the study of value chain activities with 4-digit SIC codes, then we assessed presence of manufacturing synergies. We found no evidence that, on average, organizations involved in manufacturing-related businesses are reaping financial benefits from shared resources in manufacturing. However, some firms, through explicit commitment to coordination, do realize performance benefits from such involvement. Copyright

Change drivers in the new millennium: implications for manufacturing strategy research

Drawing on multiple sources, we identify technological, global and workforce trends that will affect the formulation and implementation of manufacturing strategy in the next decade. We then describe several theories from economics, sociology, and psychology and show how they can be used to enrich our interpretations of the effects of these trends. Throughout, we offer suggestions for future research in manufacturing strategy.

The interdependency between marketing and manufacturing

Abstract This article examines the interdependency that exists between marketing and manufacturing groups and the need for mechanisms to coordinate their decisions and actions. The effectiveness of three coordination mechanisms (control procedures, planning processes, committees/task forces) in reducing disagreements between departments was evaluated. Results from the study suggest that the simultaneous use of a variety of coordinating mechanisms leads to a significant decrease in interdepartmental disagreement.

Modeling the relationship between corporate strategy and wealth creation using neural networks

In this paper, we hypothesize that there is a non-linear relationship between corporate strategy, short-run financial variables, and wealth creation measured as market value added (MVA), and use neural networking to model this relationship. The neural network model accurately categorized over 90% in the training set and nearly 93% of firms in the holdout test sample. Additional analysis revealed that strategy variables were particularly effective predictors of an upward trend in wealth creation whereas short-run financial variables were more effective in predicting a downward trend, or wealth destruction. Neural networks outperformed discriminant analysis in predictive ability in all analyses, suggesting the presence of non-linear effects. This research represents a first attempt to use neural networking to model the relationship between corporate strategy and wealth creation.

Marketing and Manufacturing Agreement on Goals and Planned Actions

A firms competitive strategy is implemented through the day-to-day actions taken and decisions made at the operating level of the firm. The purpose of this research was to address three questions: (1) in what areas do marketing and manufacturing groups within the same firm tend to disagree, (2) do marketing and manufacturing groups tend to support the postures traditionally associated with their departments, and (3) does use of written strategic plans and MBO linked to performance appraisal encourage a common strategic vision. Investigation of the areas of disagreement indicated that differences were firm-specific rather than representative of fundamental differences between marketing and manufacturing groups. Agreement between groups was significantly higher in those firms where marketing and manufacturing managers perceived that written strategic plans and MBO linked to performance appraisal were relied on frequently.A firms competitive strategy is implemented through the day-to-day actions taken and decisions made at the operating level of the firm. The purpose of this research was to address three questions: (1) in what areas do marketing and manufacturing groups within the same firm tend to disagree, (2) do marketing and manufacturing groups tend to support the postures traditionally associated with their departments, and (3) does use of written strategic plans and MBO linked to performance appraisal encourage a common strategic vision. Investigation of the areas of disagreement indicated that differences were firm-specific rather than representative of fundamental differences between marketing and manufacturing groups. Agreement between groups was significantly higher in those firms where marketing and manufacturing managers perceived that written strategic plans and MBO linked to performance appraisal were relied on frequently.

Coordinating manufacturing and marketing in international firms

In this article, the authors argue that manufacturing experiences much of the turbulence and conflict imposed by the dynamic global marketplace through its relationship with marketing, because marketing is usually responsible for introducing changing competitive priorities and demand patterns to the organization. Through a survey of manufacturing and marketing managers within international firms, the authors develop a profile of manufacturing-marketing conflicts experienced in each of four international strategy environments: export, multidomestic, global, and transnational. As international strategies became more complex, firms made use of more techniques for coordinating between marketing and manufacturing, with more use of decentralized and informal approaches. Coordinating techniques included individual MBO-reward systems, joint task forces for problem-solving, and direct involvement of manufacturing and marketing in establishing the competitive priorities of the firm.

Functional coordination within the global firm

In this article the authors present a framework that describes coordination difficulties for each of five international strategy alternatives. For each international strategy, the authors discuss the conditions that can create conflicts in managing marketing, operations, and product development. They then suggest functional coordinating mechanisms that are best suited to the particular demands of each strategy.

Multi-theoretical Mixed-level Research in Strategic Management

The purpose of this chapter is to offer a discussion of the key issues in mixed-level, multi-theoretical research in strategic management. Mixed-level issues are grouped into two categories: (1) measurement of constructs, with discussion of situations in which the level of theory, level of measurement, and level of analysis differ; and (2) relationships among constructs, including cross-level and multilevel models. Key theories and views found in the strategic management literature are discussed briefly to illustrate the basic arguments of each, its focal unit of analysis, and the implicit or explicit incorporation of mixed-level perspectives.

The Impact of Cross-Validation Adjustments on Estimates of Effect Size in Business Policy and Strategy Research

The authors examined use of cross-validation in multiple regression research in organization studies by reviewing research published in three top journals in business policy and strategy (BPS) over 6 years. Application of a formula method of cross-validation to each study showed that shrinkage was often large. In some cases, shrinkage was greater than 50% of R2 when sample sizes were less than 90. The authors recommend that organization studies researchers use formula cross-validation to improve the validity of inferences while avoiding the additional data collection and split samples required by empirical methods.