Neng-Pai Lin

The effects of network embeddedness on service innovation performance

Research suggests that business network embeddedness is an important element in innovation performance, but most often manufacturing industry is the object of study. In recent years, the service industries have become more important; hence, this study explores the relationship between network embeddedness and service innovation performance. Statistical tools, including correlation, structural equation modelling, and regression analysis, are used to analyse questionnaire results. It is found that, except for research institute embeddedness, all other forms of network embeddedness have a significant impact on service innovation performance. It is concluded that enterprises need to be tied more closely to their business partners to achieve better service innovation performance.

Aligning manufacturing flexibility with environmental uncertainty: Evidence from high-technology component manufacturers in Taiwan

While flexibility improvement is among the top concerns of manufacturing managers, managers are advised to choose the dimensions of flexibility they want in their plants. This study investigates the strategic choice of aligning flexibility development with the external environment that manufacturing managers face. Considering the nature of the high-technology industry in Taiwan, we measure environmental uncertainty based on the dimensions of customer demand, supply, competitors and product technology. Empirical data were collected from manufacturing firms in Taiwan. We then applied path analysis to examine the effect of aligning three types of flexibility: product mix, new product and volume with specific dimensions of environmental uncertainty. The results indicate that the matching of manufacturing flexibility with environmental uncertainty is necessary to ensure profit and sales performance. When faced with certain environmental stimuli, management should choose to emphasize and develop particular manufacturing flexibility.

The effects of environmental factors on the design of master production scheduling systems

Abstract In uncertain environments, firms often use a rolling schedule to implement a master production schedule (MPS). The rolling schedule involves replanning the MPS periodically and freezing a portion of the MPS in each planning cycle. Two important decisions which have a significant impact on the cost performance of a rolling schedule are the choice of a replanning interval ( R ), which determines the replanning frequency of the MPS, and the selection of a frozen interval ( F ), which represents the number of periods the MPS is frozen in each planning cycle. The determination of the appropriate F and R values has been an important research issue, especially in an uncertain environment. This paper examines the effects of environmental factors such as cost structure, bill of material (BOM) structure, cumulative lead time, magnitude of MPS change costs, and the magnitude of forecast error on the choice of F and R for a single end item in an uncertain environment where a rolling schedule is used. Results of our investigation show that the choice of F affects total system costs per period (TC) but the effects of the choice of R on TC is situational. In addition, the analysis indicates that the magnitude of the MPS change costs, the BOM structure, and the cumulative lead time of the product are important considerations in the design of MPS systems. Results also show that the magnitude of the forecast errors and the cost structure play relatively minor roles in the choice of F and R . We also show that even when MPS change costs are high, greater freeze intervals and more frequent replanning may be cost effective.

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.

Aligning manufacturing capabilities with business strategy: an empirical study in high-tech industry

Previously suggested frameworks for business strategies failed to consider the relationship between manufacturing capabilities and business strategies. Based on observations from high-tech industry, this study proposes a new business strategy framework, taking manufacturing capabilities into consideration. This new framework categorises business strategy types into: Pre-emptive/First Mover strategy, Low Cost/Follower strategy and Differentiation/Follower strategy. Data were collected from 113 high-tech manufacturing firms in Taiwan to validate this model. Statistical results indicate that the compatibility between business strategy and manufacturing capabilities is important to a firms performance in new product introduction, net profit and sales. Our findings could serve as guidelines for firms in developing their business strategy. Specifically, firms should invest resources and time to develop a set of manufacturing capabilities to fit into their business strategies.