Manus Rungtusanatham

Supply networks and complex adaptive systems: control versus emergence

In much of the current literature on supply chain management, supply networks are recognized as a system. In this paper, we take this observation to the next level by arguing the need to recognize supply networks as a complex adaptive system (CAS). We propose that many supply networks emerge rather than result from purposeful design by a singular entity. Most supply chain management literature emphasizes negative feedback for purposes of control; however, the emergent patterns in a supply network can much better be managed through positive feedback, which allows for autonomous action. Imposing too much control detracts from innovation and flexibility; conversely, allowing too much emergence can undermine managerial predictability and work routines. Therefore, when managing supply networks, managers must appropriately balance how much to control and how much to let emerge.

Modularity, product variety, production volume, and component sourcing: theorizing beyond generic prescriptions

Abstract Research in operations management suggests that firms can mitigate the negative impact of product variety on operational performance by deliberately pursuing modularity in the design of product family architectures. However, modularity is not a dichotomous property of a product, as different types of modularity can be embedded into a product family architecture. The present paper explores how manufacturing characteristics affect the appropriate type of modularity to be embedded into the product family architecture, and how the types of modularity relate to component sourcing. The study is based on a qualitative research design involving a multiple case study methodology to examine six product families belonging to six European companies. The themes derived through case analyses are synthesized in the form of empirical generalizations. Insights from these empirical generalizations are subsequently developed into two propositions explaining why and under what conditions these empirical generalizations might hold for a product family outside of the original sample. The theoretical results formalize, first of all, a type of modularity (i.e. combinatorial modularity) not currently described in literature. Second, the theoretical propositions suggest that when the desired level of product variety is low (high) relative to total production volume, component swapping modularity (combinatorial modularity) helps to maximize operational performance. Finally, the complexity of component families outsourced to suppliers and the geographical proximity of component family suppliers affect the extent to which the product variety–operational performance trade-off can be mitigated through modularity.

Supply‐chain linkages and operational performance

In order to improve performance at the operational level, more and more firms are developing explicit linkages with suppliers and with customers. While the question of “what beneficial impact do linkages with suppliers and with customers have for a firm” has been addressed in numerous studies, the equally important question of “why” this beneficial impact arises deserves further discourse and explication. This paper borrows and applies the Resource‐Based View of the Firm, a theoretical perspective prevalent in the strategic management literature, to develop a conceptual framework to describe, explain, and predict the advantages of a firms linkages with entities in its supply chain on its internal operations. The proposed framework can be used to justify decisions to develop, strengthen, and protect relationships with suppliers on the upstream side and with customers on the downstream side. The framework can also be used to evaluate practices implemented to link a firm to its suppliers and customers and to provide a decision roadmap for firms to better understand how to maximize operational performance benefits from these supply chain linkages.

Supply-chain configurations for mass customization

Much of the research on mass customization strategy implementation reflects a functional focus, considering product design, marketing, manufacturing or sourcing, individually. This paper takes a step towards integrating these perspectives into a more systemic view of mass customization strategy implementation. More precisely, the paper explores how a firms supply chain – meant as the whole of its supply, manufacturing and distribution networks – should be configured when different degrees of customization are offered. The empirical research consists of a multiple case study including firms in the telecommunications, transportation vehicles and food processing equipment industries. Case analyses highlighted that the degrees of freedom customers have in specifying product features, heavily affects the supply-chain configuration, as well as product architecture and, ultimately, firm performances. Our findings further show that two peculiar supply-chain configurations can be identified, each one suggesting an isomorphism between market characteristics, product structure and supply-chain configuration.

Supply chain interactions and time‐related performances: An operations management perspective

Many studies claim that when an organization interacts with suppliers and with customers across the supply chain, the organization would achieve improved time performances. This claim, however, has undergone limited theoretical development, as well as subsequent systematic empirical testing. As a result, we still have incomplete understanding of the “why” (i.e. the rationale) and the “how” (i.e. the mechanisms by which) of such interaction’s impact on time performances. This study addresses these issues through both model development and empirical analyses of 164 plants. Our analyses suggest two findings. First, when an organization interacts with suppliers and with customers on quality management issues, the organization would improve its time performances indirectly as a result of complete mediation by internal practices for: quality management; low management; inter‐unit coordination; and vertical coordination. On the other hand, when an organization interacts with suppliers and with customers on materials flow management issues, the impact on time‐related performances can either be completely or partially mediated by internal practices.

Mix flexibility and volume flexibility in a build‐to‐order environment

Purpose – This paper aims to investigate the factors enabling or hindering the simultaneous pursuit of volume flexibility and mix flexibility within a supply chain through the lens of a manufacturing plant seeking to implement a build‐to‐order (BTO) strategy.Design/methodology/approach – To accomplish this empirical investigation, an in‐depth case study involving a manufacturing plant and its supply chain was designed. Prior to primary and secondary data collection, this research setting had already decided to implement a BTO strategy and had, moreover, carefully assessed several practices for BTO strategy implementation, as well as their interactions.Findings – The studied case suggests that a number of approaches typically used to increase volume flexibility, actually negatively affect mix flexibility and vice versa. The existence of such trade‐offs may ultimately inhibit the implementation of a BTO strategy and this was the case in the studied company. Nevertheless, empirical evidence also suggests tha...

Beyond improved quality: the motivational effects of statistical process control

Abstract The deployment of statistical process control (SPC) in manufacturing environments is a prominent global phenomenon. Managers have frequently justified investments in SPC by citing and/or demonstrating the improvements in quality and costs from the effective implementation and practice of SPC. This paper complements this rationalization by presenting conceptual arguments and empirical evidence to further our understanding of the motivational effects that result from the deployment of SPC within production environments. Several hypotheses derived from relating the deployment of SPC to process operators’ jobs and their affective reactions to work are tested using data provided by 100 process operators. The empirical results, generated from applying path analysis, suggest that the effective implementation and practice of SPC, in fact, would create more enriched jobs for process operators that lead to higher levels of work motivation and job satisfaction.

Pooling Data Across Transparently Different Groups of Key Informants: Measurement Equivalence and Survey Research ∗

Survey research is often deployed in the study of situational issues facing organizations and functions within organizations. One particular survey research approach can be described as follows: (1) survey questionnaires involving perceptual questions about a situational issue are administered to key informants, one key informant per unit of analysis; (2) key informants vary in a transparent manner across units of analysis such that groups of these key informants are discernible; and (3) perceptual responses, after data collection, are then pooled to create a single larger data set for subsequent statistical manipulations. In this methodological note, we draw attention to this particular survey research approach and ask the question: When is it appropriate to pool data provided by key informants with transparently different demographics across units of analysis so as to create a single larger data set for statistical manipulations? We use a simple example and data from a published study to motivate the relevance and gravity of this methodological question. Offering the concept and empirical assessment of measurement equivalence as the answer to this methodological question of data pooling, we prescribe and demonstrate, with the total quality managementcustomer satisfaction relationship, the procedural steps for evaluating the seven subdimensions of measurement equivalence. In conclusion, we highlight methods that should be adopted, before data collection, to minimize the risk of violating measurement equivalence. After data collection and for the instances when the empirical assessment for measurement equivalence advises against pooling of such data, we also offer suggestions for analyzing such data and presenting associated statistical results.

Conceptualizing organizational implementation and practice of statistical process control

Abstract Current widespread implementation and practice of statistical process control (SPC) attest to the potential of SPC to contribute to continuous quality improvement efforts. While much has been written about SPC- related topics, a more fundamental question — “What does the implementation and practice of SPC entail?” — has yet to merit a detailed conceptual or empirical examination. As a result, very little knowledge has accumulated or has been documented to identify, describe, and define the requisite organizational policies and actions to make the implementation and subsequent practice of SPC an effective and viable part of any organizations quality management system. In this paper, we report on research efforts towards an enhanced conceptualization of this phenomenon; we provide various definitional perspectives on organizational efforts to implement and practice SPC, culminating in the proposition of the construct, SPC Implementation/ Practice , and its nominal definition. We also employ an empirical approach, utilizing a panel of subject-matter-experts and the affinity diagram, to identify and define a set of 14 requisite policies and actions indicative of the implementation and practice of SPC within organizations. The identification of these 14 requisite policies and actions facilitates the construction of a diagnostic instrument that organizations can employ to assess shortcomings and uncover improvement opportunities in their implementation and practice of SPC.

Towards measuring the “SPC implementation/practice” construct: Some evidence of measurement quality

Describes the process and outcomes of operationalizing the 14 dimensions underlying the SPC implementation/practice construct. Employs a standard procedure to create a measurement instrument comprising 14 measurement scales, with the number of constituent measurement items ranging from one to four, that correspond to the 14 dimensions underlying the SPC implementation/practice construct. Reports the results of assessing three properties of measurement quality for these newly‐created measurement scales, namely: face validity, internal consistency reliability and uni‐dimensionality. Such a measurement instrument can then be applied to examine antecedents and consequences of SPC implementation/practice and to diagnose existing organizational efforts at implementing and practicing SPC and to identify opportunities to improve organizational implementation and practice of this quality improvement intervention. Demonstrates the application and interpretation of the SPC implementation/practice measurement instrument within one organizational setting. Concludes by identifying future research needs.