David A. Johnston

Does E-Business Matter to SMEs? A Comparison of the Financial Impacts of Internet Business Solutions on European and North American SMEs

Small and medium‐sized enterprises (SMEs) are adopting Internet Business Solutions (IBS) internationally to improve their performance. What is the net impact of these solutions for SMEs? This paper presents the results of survey research involving 1,666 organizations in Europe and North America. The research found that IBS adoption mattered resulting in tangible financial benefits for SMEs in all the nations studied. However, these benefits were not evenly distributed across regions, industries, technologies, or size categories. The results suggest that SME managers should adopt a staged approach to IBS adoption in order to maximize performance gains.

A Decision Support System for Planning Remanufacturing at Nortel Networks

We developed a decision support system (DSS) for Nortel Networks, an international digital and internet network equipment manufacturer, to improve its planning of its remanufacturing operations for circuit assemblies. This has resulted in economic benefits to the company during the past three years. The system embodies a reverse-logistics model that allows decision makers to better plan the outbound and inbound product flows involved in making design changes. Careful modeling of the decision-making process and its embodiment in appropriate information technology were keys to the successful implementation of the project in Nortels operations.

When does lean hurt? – an exploration of lean practices and worker health and safety outcomes

Abstract This research takes a first step toward a more complete understanding of the effects of lean production on both operational and worker health and safety performance. Previous operations management literature considered only the operational performance implications of lean while previous safety literature considered only the worker health and safety implications of lean. This research considers both perspectives by providing empirical evidence on the impact of lean on operational and health and safety performance. Results from 10 case studies show that the adoption of lean practices and or an overall lean philosophy has a positive impact on operational and health and safety performance. However, there are some nuances in the role of individual practices associated with lean. The plants with the worst operational and health and safety performance in the sample were those that adopted just-in-time practices without human resource and prevention practices. The results show how both the social and technical components of lean are required for lean to have positive operational and health and safety impacts.

The e-business capability of small and medium sized firms in international supply chains

Abstract.The reality of trade is that it takes two or more parties to do business, and therefore the capabilities of both selling and buying firms are important. Where over 60% of Small and Medium Enterprises (SMEs) in the USA and Canada have adopted some form of business process through a computer mediated network, such as the Internet, other countries have significantly lower adoption rates. In Asia and Latin America, where as many as 99% of all firms are classified as SMEs, low adoption rates may be an impediment to increased international trade. This paper takes a critical look at the existing research on adoption of e-business technology by SMEs internationally. In particular, we identify the gap in our knowledge about what makes SMEs in different countries capable of using the technology in their domestic and international supply chains. We present a typology of the business processes networked over computer-mediated processes from our preliminary empirical field research, interviewing 40 SMEs in Canada, Japan, China and Mexico. This is used to propose a model of international SME capability to guide future empirical research.

Organisational knowledge creating processes and the performance of university-industry collaborative R&D projects

This paper describes one of the first empirical explorations into organisational knowledge creation theory as first elucidated by Nonaka and Takeuchi. We extend the theory and examine it in the inter-organisational context of University-Industry (U-I) collaborative R&D Projects. More specifically, the relationship between enabling conditions and knowledge conversion processes as well as the effects of these processes on the achievement of technological objectives are studied using a sample of 25 U-I collaborative R&D projects into advanced technology. Quantitative and qualitative evidence supports the theory that some enabling conditions are significant for knowledge conversion processes. Furthermore, the presence of the aggregate knowledge processes is positively associated with the achievement of successful technological objectives. The theoretical and practical implications of these findings are discussed.

Innovations in a relational context: Mechanisms to connect learning processes of absorptive capacity

Companies increasingly regard relationships with other companies as a source of competitive advantage. Relationships constitute a context in which the firm may learn and build absorptive capacity. This study provides an in-depth explanation of the key mechanisms that interlace the different learning processes leading to innovations in a relational context. A theoretical elaboration of these mechanisms precedes their empirical study within four customer-supplier dyads, centred on two focal customer organizations.The article contributes by discussing how the mechanisms act and interact to create absorptive capacity for a focal firm across relationships. We find that structural learning mechanisms, while necessary are not sufficient to explain variation in the presence of absorptive capacity across different learning contexts. Cultural, psychological and policy learning mechanisms complement the picture. From the empirical analysis we derive propositions to guide further research into the creation of absorptive capacity in a relational context.

Manufacturing managers and the adoption of advanced manufacturing technology

The theory of reasoned action is used to explain why manufacturing managers champion the adoption of advanced manufacturing technology (AMT). Championing includes familiarization behaviours, such as experimenting with new technologies, and promotion behaviours, such as convincing others of the benefits of new technologies. The theory of reasoned action suggests that championing behaviours of manufacturing managers are determined by their personal beliefs about the outcomes of the adoption of AMT and their beliefs about the attitudes of superiors, peers and subordinates towards AMT. The explanatory power of the theory of reasoned action is tested with data collected from a survey of manufacturing managers in the automotive parts industry. A partial least squares analysis of the data shows that the theory does explain the championing behaviours of familiarization and promotion. The paper concludes that personal beliefs about the outcomes of adoption of AMT are most significant in determining promotion behaviours and that beliefs about the attitudes of senior executives towards AMT automation are most significant in motivating familiarization behaviours.

The efficiency of joint decision making in buyer-supplier relationships

This paper examines the effectiveness of joint decision making within 87 pairs of buyer-supplier relationships in manufacturing. Joint decision making is an important attribute of a more cooperative supply chain relationship that may ultimately result in a better performance. Efficiency is modeled as a multiple criteria problem using Data Envelopment Analysis (DEA). Inputs of five kinds of joint decision making activity are examined relative to two measures of output based on the assessment of the buying firm. Three contingent constructs (product customization and innovation, media richness of the communication between buyer and supplier, and continuity in the relationship) are then examined for their impact on the relative performance of each pair. The implications for the management of supply chain relationships and benchmarking of best practice are then discussed.

Implementations of robotics : identifying efficient implementors

This paper examines the implementation of robotics in 31 companies. The problem is to determine which companies are the most efficient implementors. Implementation efficiency is modelled as a multiple criteria problem, using Data Envelopment Analysis (DEA). This tool was designed for evaluating the relative efficiency of a set of decision making units in the presence of multiple inputs and multiple outputs. In the present setting, three outputs: startup time, uptime when required, and management satisfaction are examined relative to three inputs or circumstances: system complexity, system novelty, and the implementation teams previous experience with the technologies involved. In addition, three variables, namely supplier management practices, plant size, and perceived urgency, are evaluated vis-a-vis their impact on implementation efficiency.

Exploring the net impact of internet business solution adoption on SME performance

This study explores the post-adoption effect of internet business solutions (IBS) on business value creation, as measured by firm revenues, direct and indirect costs, and investment satisfaction for a sample of 254 small- and medium-sized enterprises (SMEs). In addition, the study tests how well the much-discussed Revolutionary and Evolutionary views of e-business strategy fit the data. The results of the study show that business value can be significantly enhanced by the adoption of internet business solutions. Furthermore, benefits are not mutually exclusive to either view – the surveyed organisations experienced post-IBS adoption benefits by pursuing both strategies concurrently.