Ian P. McCarthy

The impact of outsourcing on the transaction costs and boundaries of manufacturing

Abstract This paper discusses the concept of outsourcing, along with an account of the economic benefits that are achieved by reconfiguring the organization and reducing the transaction costs of providing products and services. With the practice of outsourcing experiencing exceptional growth, this paper examines the corresponding change (decline) in UK manufacturing as an economic activity, and considers how the economic benefits of outsourcing alter the contribution that an organization makes to a sectors gross domestic product. To assess this issue, an input–output methodology for measuring economic restructuring in UK manufacturing is presented.

Achieving Contextual Ambidexterity in R&D Organizations: A Management Control System Approach

Research on how managers control R&D activities has tended to focus on the performance measurement systems used to exploit existing knowledge and capabilities. This focus has been at the expense of how broader forms of management control could be used to enable R&D contextual ambidexterity, the capacity to attain appropriate levels of exploitation and exploration behaviors in the same R&D organizational unit. In this paper, we develop a conceptual framework for understanding how different types of control system, guided by different R&D strategic goals, can be used to induce and balance both exploitation and exploration. We illustrate the elements of this framework and their relations using data from biotechnology firms, and then discuss how the framework provides a basis to empirically examine a number of important control relationships and phenomena.

Manufacturing classification: Lessons from organizational systematics and biological taxonomy

Provides a fresh and novel approach to an established problem; the classification of manufacturing systems. Reviews existing manufacturing classifications and biological taxonomy. Proposes a consistent vocabulary and preliminary guidelines for the successful development of other classifications (FMS types, levels of technology, etc.). Aims to aid the construction of competent classifications that will advance the understanding of manufacturing system modelling and design. Supports proposals by novel comparisons drawn from the “science of diversity”, systematics, and the 200 years of experience that biological taxonomy has to offer.

Manufacturing strategy: understanding the fitness landscape

This theoretical paper presents, extends and integrates a number of systems and evolutionary concepts, to demonstrate their relevance to manufacturing strategy formulation. Specifically it concentrates on fitness landscape theory as an approach for visually mapping the strategic options a manufacturing firm could pursue. It examines how this theory relates to manufacturing competitiveness and strategy and proposes a definition and model of manufacturing fitness. In accordance with fitness landscape theory, a complex systems perspective is adopted to view manufacturing firms. It is argued that manufacturing firms are a specific type of complex system – a complex adaptive system – and that by developing and applying fitness landscape theory it is possible to create models to better understand and visualise how to search and select various combinations of capabilities.

The open innovation research landscape: Established perspectives and emerging themes across different levels of analysis

Abstract This paper provides an overview of the main perspectives and themes emerging in research on open innovation (OI). The paper is the result of a collaborative process among several OI scholars – having a common basis in the recurrent Professional Development Workshop on ‘Researching Open Innovation’ at the Annual Meeting of the Academy of Management. In this paper, we present opportunities for future research on OI, organised at different levels of analysis. We discuss some of the contingencies at these different levels, and argue that future research needs to study OI – originally an organisational-level phenomenon – across multiple levels of analysis. While our integrative framework allows comparing, contrasting and integrating various perspectives at different levels of analysis, further theorising will be needed to advance OI research. On this basis, we propose some new research categories as well as questions for future research – particularly those that span across research domains that have so far developed in isolation.

Special issue editorial: the what, why and how of mass customization

This paper introduces the aim, scope and content of this special issue on mass customization. It begins by providing a background review of mass customization, which revolves around two questions: what is mass customization, and why mass customize? By focusing on these, the paper presents definitions and explanations of the different approaches to mass customization, and describes the potential reasons for and benefits of mass customization. In addition to setting the scene for the special issue, this introductory review asserts that there is a relative dearth of research on how to design and operate a manufacturing system capable of mass customizing. This is a system design or configuration issue, which involves determining the most appropriate or viable design for the available range of multiple and interdependent design variables. However, despite the strong interest in configurational research in the business and operations strategy area, there are few works that develop and propose models for understanding how to mass customize.

An evolutionary approach to benchmarking

Introduces a framework for benchmarking organisations – “evolutionary benchmarking”. Discusses the concept and operation of the framework, along with its proposed advantages in aiding benchmarking. The benchmarking approach proposed utilises an evolutionary classification method called cladistics. Uses an example classification of automotive assembly plants to show how the proposed framework helps benchmarking in terms of: providing a framework for representing benchmarking information; enhancing the quality and validity of the information according to the classification rules of parsimony, congruence and homology; and providing a comparison that indicates how the practices should be adopted. This framework is considered to be useful to researchers who study benchmarking methodologies and those that categorise the findings of benchmarking studies.

Technology management – a complex adaptive systems approach

There are systems methods and evolutionary processes that can help organisations understand the innovative patterns and competitive mechanisms that influence the creation, management and exploitation of technology. This paper presents a specific model based on the evolutionary processes of variation, selection, retention and struggle, coupled with fitness landscape theory. This latter concept is a complex adaptive systems theory that has attained recognition as an approach for visually mapping the strategic options an evolving system could pursue. The relevance and utility of fitness landscape theory to the strategic management of technology is explored, and a definition and model of technological fitness provided. The complex adaptive systems perspective adopted by this paper, views organisations as evolving systems that formulate strategies by classifying, selecting, adopting and exploiting various combinations of technological capabilities. A model called the strategy configuration chain is presented to illustrate this strategic process.

Building a manufacturing cladogram

This article presents the findings of an investigation into the classification of manufacturing systems based on cladistics and the theory of natural selection. The article describes the benefits and application of cladistic classifications for those concerned with manufacturing advancement and technology management. The information presented provides researchers and consultants who have no prior knowledge of classification theory, with an introduction to this school of classification, along with rules and guidelines on how to construct, validate and analyse a manufacturing system cladogram.

Cladistics: a taxonomy for manufacturing organizations

Presents an evolutionary management technique (cladistics) which could enable organizations to formally and systematically understand the emergence of new manufacturing forms within their business environment. This fundamental, but important, insight could result in cladograms being used as a tool within a change framework, for achieving successful organizational design and change. Thus, regardless of the industrial sector, managers could use cladograms as an evolutionary analysis technique for determining “where they have been and where they are now”. This evolutionary analysis could be used to formulate coherent and appropriate action for managers who are responsible for organizational design and development.