Chee-Chuong Sum

Business environment, operations strategy, and performance: An empirical study of Singapore manufacturers

Abstract Consideration of the task environment, those forces which are out of the short-run control of management, has been relatively neglected in operations strategy research. The neglect of environmental factors in operations strategy research is surprising when one considers that the fit between environment and organizational capabilities and resources is a central tenet of major stretegic management paradigms. We use a path analytic framework to study the effects of environment on operations strategy selection and performance (self-reported change in profits) for a sample of Singapore manufacturers. We identify strong relationships between environmental factors such as labor availability, competitive hostility, and market dynamism and the operations strategy choices encompassed by competitive priorities. The data also indicate that, when faced with the same environmental stimuli, high performers choose to emphasize different competitive priorities than low performers. In addition to exploring substantive questions about the importance of the environment in explaining operations strategy, this research also demonstrates that environmental variables can provide effective controls for industry effects in multiple industry empirical studies in operations strategy.

A Taxonomy of Operations Strategies of High Performing Small and Medium Enterprises in Singapore

Small and medium enterprises (SMEs) are recognized as playing a pivotal role in the economic growth and technological progress of many countries, yet there is a dearth of research that examines the operational performance and strategies of these smaller enterprises, especially in the Asian context. Of particular interest is the operational posture in terms of the key operations priorities adopted by successful SMEs in carving out their own competitive niches. This study is the first to develop a taxonomy of operations strategies based on the operational performance of high performing SMEs in Singapore. As Singapore is one of the most competitive countries in the world and a highly successful newly industrializing nation in Asia, the use of Singapore data provides benchmarking and best practice information for international business communities and newly industrializing countries. Three strategic clusters were identified. Analysis showed significant differences in the operational posture, financial performance and the kinds of improvement programs undertaken by the three strategic clusters. The strategic role of operations in terms of its contribution to corporate strategic formulation and financial profitability was also investigated. Managerial implications of our findings are presented.

Strategic logistics management in Singapore

In today’s highly competitive environment, many companies are going global to acquire market share and take advantage of higher production and sourcing efficiencies. A key determinant of business performance is the role of the logistics function in ensuring the smooth flow of materials, products and information throughout the company’s supply chains. To compete effectively, companies must recognize the strategic importance of the logistics function. The strategic management of logistics and supply chain practices of companies in Singapore is examined. A framework is proposed to classify companies according to the extent that logistics is used as a competitive weapon. The practices and characteristics of the various strategic groups are then examined and analyzed. The best practices of companies with strategic logistics are also identified. The use of information technology (IT) and the factors that will shape the logistics industry in the future are also explored. Being one of the first major studies on the Singapore logistics industry, generates new insights and information for logistics managers and businessmen interested in the Singapore logistics landscape.

Strategic posture of logistics service providers in Singapore

As organizations globalize to reach new markets and achieve higher production and sourcing efficiencies, logistics will play an increasingly important role in moving materials and products throughout the organizations’ supply chains. For many companies, third party logistics providers (or logistics providers) represent a viable and effective alternative to fulfilling their own logistics requirements. Amidst growing competition, the logistics providers must strategize to determine how they want to position their logistics services in terms of cost, quality, features, and value‐added to their customers. This research represents the first study that examines the different strategic postures of logistics providers using Porter’s competitive framework and analyzes the business performance, technologies, operations objectives, and future plans of each strategic type. The differences among the strategic types generate new managerial insights and implications for logistics managers and executives.

Linking financial performance to strategic orientation and operational priorities: An empirical study of third‐party logistics providers

Purpose – Aims to investigates the relationship of strategic choices of pure cost‐, pure differentiation‐, or a combination‐strategy on a composite measure of financial performance for third‐party logistics (3PL) providers in Hong Kong. In addition, it seeks to identify the importance of operations priorities underlying the respective adopted strategy, as well as the importance given to future competitive challenges for each strategy.Design/methodology/approach – Uses cluster analysis, ANOVA.Findings – Logistics service providers classified to follow different strategies report different financial performance, with companies adhering to the combined strategy of cost and differentiation performing best, followed by pure differentiation companies, which in turn outperform pure cost‐, commodity driven‐companies.Research limitations/implications – Future research may be widened to include customer, and not solely competitor, perceptions. Further studies could elaborate on technology adoption, information shar...

A multiple-case design methodology for studying MRP success and CSFs

We used a multiple-case design to study materials requirements planning (MRP) implementation outcome in 10 manufacturing companies in Singapore. Using a two-phased data collection approach (pre-interview questionnaires and personal interviews), we sought to develop a comprehensive and operationally acceptable measure of MRP success. Our measure consists of two linked components. They are a satisfaction score (a quantitative measure) and a complementary measure based on comments from the interviewees regarding the level of usage and acceptance of the system. We also extended and consolidated a seven-factor critical success factor (CSF) framework using this methodology. CSFs are important, but knowing the linkages between them is even more important, because these linkages tell us which CSFs to emphasize at various stages of the project.

Transportation concerns of foreign firms in China

In recent years, many foreign firms have flocked to China (People’s Republic of China) to take advantage of the opportunities in the large market. However, some of these firms have faced logistical problems in transporting and distributing their goods in China. Identifies the transportation problems faced by foreign firms operating in China and examines the possible actions and factors for minimizing such problems. The objectives of this study are achieved through a survey of Singapore‐based manufacturing firms that have operations in China. The survey results show that some transportation problems were more serious than others. The type of transport mode and ownership of the transport services used can affect the degree of satisfaction for the transportation of goods in China. Also identifies the actions taken by the firms that were most effective in alleviating the transportation problems. The government can play an important role in improving the logistical environment.

Critical success factors in implementing MRP and government assistance: a Singapore context

It is generally acknowledged that Manufacturing Resource Planning (MRP) could revolutionize manufacturing operations. Making use of data from a recent survey of MRP practices in Singapore conducted jointly by the National Computer Board (NCB) and the National University of Singapore (NUS), this paper provides a profile of manufacturing companies in Singapore that both have and have not implemented MRP. The Critical Success Factors involved in implementing MRP are identified and the theoretical justification behind each factor examined. Finally, the ways in which the Singapore Government can help local companies implement, operate, and maintain MRP systems are discussed. It is an expensive investment, and difficult to implement, due to its complexity. It is hoped that knowledge and understanding of these factors will assist firms in successfully implementing MRP and enable them to further improve their systems in order to maximize returns.

An analysis of Material Requirements Planning (MRP) benefits using Alternating Conditional Expectation (ACE)

Abstract Responding to regional and international competition, many manufacturing companies have adopted MRP systems to improve their manufacturing operations. Of primary interest to managers and users of MRP is the benefits that can be derived from using the MRP technology. While the literature abounds with MRP implementation studies, there is a dearth of research that examines the determinants of specific MRP benefits. Knowledge of the determinants would enable MRP managers and users to concentrate on key areas to achieve benefits that match their company goals. This paper identifies the organisational, implementational, and technological variables that affect specific MRP benefits as reported by Singapore manufacturing companies in the most extensive MRP survey ever conducted in Singapore. Using Alternating Conditional Expectation (ACE), an advanced statistical modeling technique that increases the model fit by approximating the optimal transformations for the dependent and independent variables, the regression models developed reveal more accurate relationships compared to those in previous MRP studies. Our findings offer several novel and valuable insights into the MRP benefit-determinant relationship. The major finding is that determinant variables such as data accuracy, people support, degree of integration, and company size affect benefits in a nonlinear fashion. Data accuracy was found to be critical in affecting operational efficiency, customer service, and interdepartmental coordination benefits. Another finding suggests that when people support and data accuracy degenerate to a critical level, users might still derive increased benefits by resorting to secondary sources to accomplish their work. Users should strive for a high degree of integration to achieve full operational efficiency and coordination benefits. Partial integration does not appear to provide significant improvements. We also found that increasing company size has a positive, followed by a negative impact on operational efficiency. Lastly, our findings suggest that the pattern of technical complaints can be an indicator of system usage and interdepartmental coordination. Our findings have important implications for managers and users of MRP.

An evaluation of due date, resource allocation, project release, and activity scheduling rules in a multiproject environment

This research examines the performance of due date, resource allocation, project release, and activity scheduling rules in a multiproject environment. The results show that workload sensitive due date rules always provide better due date estimates than workload insensitive due date rules. In contrast, the performance of due date sensitive resource allocation rules is severely affected by due date nervousness. When due date nervousness is not mitigated, the due date insensitive First In System First Served (FISFS) resource allocation rule performs better than the due date sensitive resource allocation rules. Project release rules can, however, mitigate the effect of due date nervousness. Using a simple project release rule, the results show that the due date sensitive Minimum Project Due Date resource allocation rule performs better than FISFS and two other due date sensitive resource allocation rules in many project environments.