Krisztina Demeter

Manufacturing strategy and competitiveness

The importance of manufacturing strategy (MS) has never been questioned and has been emphasized in many theoretical concepts, frameworks, and models. There are only a few empirical studies, however, which examine whether these theories work in practice. In this paper the hypothesis that the existence of MS contributes to company level competitiveness (ROS, inventory turnover) is tested. The study is based on international data, which were collected in the second round of the International Manufacturing Strategy Survey. The database contains more than 700 companies from the machinery industry (ISIC 381–385), from 23 countries. The results partially support the hypothesis. The existence of MS seems to have a positive effect on ROS, however, it does not have any relation to inventory turnover. r 2002 Elsevier Science B.V. All rights reserved.

The internationalization process in companies located at the borders of emerging and developed countries

Purpose – Despite geographical proximity, major economic differences exist between Western European countries and the formerly socialist Eastern European countries. The main objective of this study is to develop a better understanding of internationalization decision processes in this specific context.Design/methodology/approach – By means of multiple case study research, six Austrian and five Hungarian companies in order to extend and refine existing theory on internationalization decisions given the current situation in Central Europe are analyzed. In particular, the paper uses extant literature to build a conceptual framework from which we derive propositions as a basis and a guide for data collection and analysis.Findings – In addition to cost considerations, process and product innovations are becoming increasingly important dimensions in explaining the reasons for internationalization projects. The reasons for internalization and solutions (relocated products and processes, entry mode and location) ...

Manufacturing strategies in Hungarian industry

Discusses those changes which can be observed at Hungarian manufacturing companies in the transition process from planned to market economies. The changes are illustrated with the results of a series of surveys, conducted in the framework of a research project on global manufacturing practices. Shows that the adjustment of Hungarian companies is rather fast, even though most of them still have a lot to do to be really competitive at the international level. Suggests that the processes which go on in the transition economies demonstrate the strength of those general “rules” which guide manufacturing management all over the world and which must be considered by all those who wish to be successful.

Lean production and business performance: international empirical results

A lean termeles javit a vallalatok operativ teljesitmenyen. Korabbi kutatasokkal osszhangban ezt nemzetkozi kerdőives felmeresből szarmazo eredmenyek is alatamasztjak. Nem mutathato ki azonban egyertelmű kapcsolat a lean termeles es az uzleti teljesitmeny kozott. A szerzők kutatasukban – kifejezetten a tobb lean eszkozt elmelyulten hasznalo es jo operativ eredmenyekkel rendelkező un. halado lean termelők uzleti eredmenyeire fokuszalva – azonositottak az uzleti teljesitmenyt befolyasolo tenyezőket. Bar szamos tenyező kivul esik a termelesmenedzsment hataskoren (pl. piaci dinamika, uj piacra lepők szama, szemelyre szabas), de a termek/szolgaltatas aranyanak befolyasolasan, a beszallitok es a kapacitastartalekok menedzsmentjen keresztul a termelesnek is van lehetősege az uzleti teljesitmeny javitasara. Vegul, bar kozvetlen kapcsolat nem mutathato ki a lean termeles es az uzleti teljesitmeny kozott, de a szerzők varakozasai szerint a folyamatosan javulo operativ teljesitmeny kiegyensulyozott es stabil uzleti teljesitmeny alapja lehet. A halado lean vallalatok pedig nagyobb esellyel kerulhetnek (maradhatnak?) a jo uzleti teljesitmennyel buszkelkedő vallalatok korebe(n). ____________ The lean production has improved the operational performance of companies. However a clear link between lean production and business performance can not be detected. In their research the authors have identified the factors affecting business performance focusing on business results of the advanced lean producers. Although a direct connection is not detected between lean production and business performance, but according to the author expects the continuously improving operational performance shall be a base for the balanced and stable business performance.

Services provided by manufacturing The Hungarian case

Abstract The paper is built on an empirical study of the service factory concept in Hungary. The importance of the possible service roles that manufacturing can play, and the general service features that a manufacturing company can posess are examined at Hungarian companies. The results show that service is still not the strongest competitive factor in Hungary, quality and costs get much more emphasis. Comparing the results with those of an English survey, the main tendencies are similar, except that the laboratory role seems to be more important in Hungary, possibly due to the relatively low capacity utilization.

Production competence revisited – a critique of the literature and a new measurement approach

Purpose – The purpose of this paper is to seek remedy to two major flaws of the production competence literature, which concern: the way the production competence construct is operationalized and the way its effects on performance are measured. Design/methodology/approach – The paper proposes to measure production competence as the two-dimensional operational level construct it actually is, and to use Slack’s (1994) importance-performance matrix to study its business level performance effects. The three hypotheses developed are tested using a subsample of the International Manufacturing Strategy Survey database, which includes 465 manufacturing companies from 21 countries. Findings – The study offers additional empirical support for production competence theory. Going beyond supporting existing theory, the results give more detailed insight by indicating that low operational performance on even one important competitive factor leads to lower business performance (order-losing effect); excessive investment...

Towards solution based thinking: characteristics of servitization at Hungarian manufacturing companies

The main purpose of the article is to describe the servitization process of Hungarian manufacturing companies based on data of the Hungarian Competitiveness research. Servitization aims at supplying a bundle of products and services that offers complete solutions for customers. In this paper we analyze to what extent characteristics of ser-vitization in developed countries are also applicable in a developing macro-environment, i.e. in Hungary. Results of our analysis show that, generally, Hungarian manufacturing companies do not place strategic emphasis on services. Nevertheless, our sample contains a number of manufacturing companies that have taken actions to servitize both on strategic and operational level. However, in case of these companies financial benefits attributable to higher levels of servitization do not yet seem to materialize.

Research in global operations management: some highlights and potential future trends

Purpose The purpose of this paper is to shortly overview the research in international operations management (OM), to provide background to the papers published in this special section. Design/methodology/approach As a literature review, the paper investigates the past, present, and future of international OM. It is not a systematic review; the paper just highlights the most important international operational management research networks, streams and concepts in the field. Findings The paper finds that there is a time lag in the field of international OM compared to other research areas within international business and management. It provides some ideas for the future to be researched. Originality/value The paper gives a focused review on international research networks which has not been done before. It also identifies two different streams of researches in international OM: the stream investigating OM differences among geographical areas, and the stream dealing with issues of international manufacturing networks.

The diversity of European manufacturing plant roles in international manufacturing networks

It is generally assumed that Western European (WE) plants belonging to multinational companies are more developed and have higher competence levels than their Central and Eastern European (CEE) counterparts. Nevertheless, empirical evidence on the plant level is very scarce. Thus, a sample of 291 manufacturing subsidiaries from 14 European countries is used to test this general statement. We argue that the clear distinction between the two regions is gradually changing with diverse plant roles coexisting in both European regions that reflect different development paths or strategies. Our results show that while less competent plants based on low cost factors are still more prevalent in CEE, a considerable group of highly competent plants is also emerging in the region that use their access to local skills and knowledge to become knowledge hubs within their networks. Nevertheless, highly competent WE plants still preserve a unique position within the multinational’s network.

Business models along supply chain position and servitisation: An empirical investigation of European manufacturers

Competitive pressures of the world economy are continuously reshaping the global supply chains of manufacturing firms. At the same time, global competition is altering the nature of output offered by manufacturers, shifting it towards a higher share of service elements. The goal of this paper is to investigate how these two factors are combined, using a sample of manufacturing companies from 13 European countries belonging to the assembly industries of fabricated metal products, machinery and equipment. The results indicate that different business models became dominant in the less developed Eastern European and the developed Western European region. Involving measures of business performance and reasons for plant location, this study also argues that in terms of service offerings and supply chain position, other types of business models can coexist and successfully prevail in the two regions.