Chen-Lung Yang

Manufacturing flexibility and business strategy: An empirical study of small and medium sized firms

Abstract This study investigates the practice of manufacturing flexibility in small and medium sized firms. Using the data collected from 87 firms from machinery and machine tool industries in Taiwan, we analyzed and prescribed the alignment of various manufacturing flexibility dimensions with business strategies. Several practical approaches to developing manufacturing flexibility in small and medium sized firms were discussed. In addition, statistical results indicate that the compatibility between business strategy and manufacturing flexibility is critical to business performance. The one-to-one relationship between business strategy and manufacturing flexibility is established to enable managers to set clear priorities in investing and developing necessary manufacturing flexibility.

What makes outsourcing effective? A transaction-cost economics analysis

This study extends the discussion of Transaction Cost Economics (TCE) and outsourcing to the selection of governance mechanisms for an effective outsourcing transaction. Specifically, our objective is to provide a better understanding as to how firms follow up on their outsourcing decisions to enhance manufacturing competitiveness through the governance mechanism, such as contract and relational adaptation (buyer-supplier cooperation). A TCE-based outsourcing model is developed to depict the relationships among key TCE variables, transaction attributes, governance mechanisms, and manufacturing competitiveness. Based on the data collected from 969 manufacturing plants in 17 countries, we found significant mediated effects from contractual clauses and relational adaptation. Firms in our sample rely on either or both types of governance mechanisms to safeguard uncertainties and opportunism inherent in outsourcing, which enhances manufacturing competitiveness. The important managerial and research implication is that, for making an outsourcing decision, it is insufficient to merely examine the transaction attributes without recognising how various forms of governance mechanisms can be implemented to enhance outsourcing effectiveness.

Quality dimensions, capabilities and business strategy: An empirical study in high-tech industry

Excellence in quality helps firms gain customer loyalty and achieve competitive edge. Previous studies have suggested the need to develop quality capabilities to improve business performance. However, quality is multi-dimensional, and the development of each dimension requires different sets of resources. It is important for a firm to develop quality capabilities with a focus on a particular set of quality dimensions to support its strategic needs. This study hypothesizes that the relative contribution of the different quality dimensions to business performance is contingent on a given business strategy. We have identified the theoretical relationship between quality capabilities (expressed as a set of dimensions) and business strategy. Using the data collected from 113 high-tech manufacturing firms in Taiwan, we have analyzed and prescribed the matching of seven quality dimensions with three business strategies. Statistical results indicate that the business performance of quality management is strategy dependent. The congruencies between business strategy, quality dimensions and capabilities are important to a firms performance in new product introduction, net profit and sales.

A transaction cost economics model for estimating performance effectiveness of relational and contractual governance: Theory and statistical results

As outsourcing continues to grow, supplier management becomes critical to the success of manufacturing firms. Transaction cost economics (TCE) suggests that firms should choose supplier governance mechanisms to ensure fulfillment of contractual obligations and safeguard against opportunism for their outsourcing activities. Accordingly, the purpose of this paper is to examine how buying organizations govern supplier contracts to improve manufacturing competitiveness and financial performance. The relative effectiveness of two primary governance mechanisms, contractual governance (CG), and relational governance, are examined.,Expanding upon previous studies, this study delineates three relational governance mechanisms (negotiation efficiency (NE), problem solving relations, and information sharing (IS)) that are conceptually, statistically and pragmatically different. Based on the TCE literature, a conceptual model is developed to decipher the relationships between pre-contract conditions (supplier asset specificity and environmental uncertainty (EU)), governance mechanisms, performance ambiguity (PA), and performance. Using the data collected from 987 firms, the statistical results present several important findings that would advance current theory and practice in outsourcing.,The authors find empirical support for the effects of contractual and relational governance in improving manufacturing and financial performance. The governance of supplier contracts clearly facilitates manufacturers’ ability to leverage their resources to improve performance. The relative effectiveness of these two governance mechanisms is related to the levels of EU and supplier asset specificity. Relational governance displays greater influence on performance than CG does. However, CG appears to be complementary to relational governance.,The interplays between supplier asset specificity and EU should be examined in the future. The relationships among NE, IS, and problem solving should also be examined to facilitate the development of relational governance.,Managers should be aware of the situational performance of governance mechanisms. Moreover, it is important to realize how differently each of the three relational governance mechanisms and CG contribute to performance.,This study extends the academic discussion of supplier governance by investigating the alignment of governance mechanisms (relational governance and CG) with pre-contract conditions to reduce PA and, thereby, enhance manufacturing performance. Under the theoretical framework of TCE, the direct and indirect effects of pre-contract conditions and governance variables are fully examined and discussed. Moreover, relational governance involves multiple mechanisms that are conceptually and pragmatically different, and future studies should not treat it as one single construct.

Efficacy of purchasing activities and strategic involvement: an international comparison

Purpose – The purpose of this study is to examine the effects of purchasing activities and the purchasing functions involvement with corporate strategy on manufacturing competitiveness as it is affected by national differences. In particular, the authors are interested in the research question: do purchasing theories built on samples from mainly North American and Western European countries apply in other countries with different cultural contexts?Design/methodology/approach – Based on the 511 samples collected from ten countries or two distinct cultural groups (Group 1: Asia; Group 2: Western Europe/USA), the authors tested a purchasing model that is well‐grounded in the literature. Two statistical methods were applied. First, multiple‐group structural equation modeling (SEM) analysis was performed to test the model. The authors then applied regression analysis to examine whether the two country groups differ in their choice and efficacy of purchasing activities and strategic involvement.Findings – The ...

Developing Manufacturing Flexibility through Supply Chain Activities: Evidence from the Motherboard Industry

Abstract This study extends the knowledge of manufacturing flexibility regarding its integration with supply chain activities. Specifically, we investigate the relationship between supplier collaboration and manufacturing flexibility in the motherboard industry. Three motherboard companies were benchmarked to decipher the impact of supply chain activities on different dimensions of manufacturing flexibility. Our findings indicate that supplier collaboration plays a major role in the development of a firms manufacturing flexibility. More importantly, we find that not all supplier collaborative activities contribute equally to the development of different types of manufacturing flexibility, and supplier collaboration could affect the interrelationships among new product, product mix, and volume flexibility. A causal-loop diagram is developed to align supplier involvement with various types of manufacturing flexibility. Accordingly, several research propositions and managerial implications are offered.

Tourism guide cloud service quality: What actually delights customers?

BackgroundThe emergence of advanced IT and cloud services has beneficially supported the information-intensive tourism industry, simultaneously caused extreme competitions in attracting customers through building efficient service platforms. On response, numerous nations have implemented cloud platforms to provide value-added sightseeing information and personal intelligent service experiences. Despite these efforts, customers’ actual perspectives have yet been sufficiently understood. To bridge the gap, this study attempts to investigate what aspects of tourism cloud services actually delight customers’ satisfaction and loyalty.Methods336 valid survey questionnaire answers were analyzed using structural equation modeling method.ResultsThe results prove positive impacts of function quality, enjoyment, multiple visual aids, and information quality on customers’ satisfaction as well as of enjoyment and satisfaction on use loyalty.ConclusionsThe findings hope to provide helpful references of customer use behaviors for enhancing cloud service quality in order to achieve better organizational competitiveness.