Richard Germain

The role of context and structure in radical and incremental logistics innovation adoption

An analysis of manufacturers was undertaken to examine the adoption of logistics process innovation. A typology of innovation was created on innovation cost and radicalness. The results reveal that size and environmental uncertainty directly predict expensive, radical but not low-cost, incremental innovation. Specialization predicts both. Decentralization of logistics process innovation adoption decision-making predicts low-cost, incremental innovation but not expensive, radical innovation, whereas decentralization of manufacturing operations does not predict logistics process innovation. Finally, although integration does not predict low-cost, incremental innovation, it inversely predicts high-cost, radical innovation

The Effect of Just‐in‐Time with Customers on Organizational Design and Performance

Faced with environmental volatility and increased competition, firms are turning to supply chain management and associated time‐based initiatives to develop sustainable competitive advantages. This research examines just‐in‐time (JIT) as one such logistics strategy. While prior research has focused on internal and upstream JIT (i.e., production and purchasing), the present research examines the extent to which exchange with downstream customers is just‐in‐time oriented. The results of the research show that JIT with customers is associated with organizational designs that are more decentralized, integrated, and formalized and with better performance in terms of less finished goods inventory and higher overall financial performance. The analysis controls for firm size, production technology, and tenure of the senior logistics executive and shows that the effects of JIT with customers on organizational structure and performance are, with a limited number of exceptions, relatively robust.

Total system JIT outcomes: inventory, organization and financial effects

Despite anecdotal evidence of the performance implications of just‐in‐time (JIT) implementation, little empirical research has been conducted. Examines total system JIT’s empirical relationships with a variety of performance outcomes. Total system JIT encompasses JIT purchasing, JIT production, and JIT selling. In a mail survey of 200 logistics executives, total system JIT was found to be: inversely related to weeks of inventory (inclusive of inbound, in‐process, and outbound); inversely related to the number of layers in various functional areas (e.g. marketing); and positively related to three different indicators of financial performance (ROI, profits, and ROS). Results, managerial implications, and further research are discussed.

The mediating role of operations knowledge in the relationship of context with performance

Abstract Design knowledge intensity and throughput variance are both aspects of knowledge, the former relating to organizational management knowledge and the latter characteristic of operational process knowledge. We model and test their relationships to each other and to financial performance. We also examine two context variables as antecedent to knowledge: they are demand unpredictability (a dimension of environmental uncertainty) and mass output orientation (a measure of production technology type). The results show that knowledge completely mediates the effects of context on financial performance; i.e. the context variables impact knowledge and knowledge impacts financial performance, but the context variables have no direct effect on financial performance. Thus, knowledge appears to shield the firm from demand unpredictability, while mass output orientation type affects financial performance only through its impact on knowledge.

Quality management and its relationship with organizational context and design

The research proposes a theory that organizational design mediates completely the effect of context on quality management. The results show that the greater the level of the organizational design variables (formalization, technocratic specialization, and strategic decentralization), the greater the level of quality management. The context variables of size, production technology (which varies from custom to flow production types), and product dynamism predict organizational design to varying extents. Statistical analysis shows that the indirect effect of size, production technology, and product dynamism on quality management are significant and positive. Direct effects of context on quality management were tested and found not to be significant. The conclusion is drawn that organizational design transmits the effect of context to quality management.

Effect of Just-in-Time Purchasing Relationships on Organizational Design, Purchasing Department Configuration, and Firm Performance

Abstract Just-in-time (JIT) purchasing relationships with suppliers involves close collaboration on product development and specifications, and on both product and information flows. The results of a study of 200 U.S. manufacturers demonstrate that the effects of JIT purchasing relationships are pervasive. First, organizational design changes as JIT purchasing increases, and the firm becomes more formalized in performance measurement, more integrated, and more specialized. Decentralization occurs in line-operating decisions but not scheduling. Second, performance is enhanced, with weeks of inbound inventory decreasing and both financial and market performance increasing. However, the configuration of the purchasing function does not change.

Applied process knowledge and market performance: the moderating effect of environmental uncertainty

Challenges the idea of an unconditional and positive influence of knowledge on performance without regard to environmental uncertainty. Focuses on applied process knowledge spanning the supply chain (i.e. considers supplier, internal, and customer sources). A survey of 208 manufacturing firms found the association between applied process knowledge and firm market performance is positive and statistically significant when demand unpredictability is high (but not when low); statistically significant when product churning (uncertainty) is high (but not when low); and not moderated by core production or logistics process change. Firm size and production technology were also controlled. Firms that can determine the moderating effect of the different types of environmental uncertainty they face upon their knowledge‐performance relationship will perform better in terms of market performance indicators.

Just‐in‐time and context

An empirical study of 183 manufacturers examines the effects of just‐in‐time (JIT), size, environmental uncertainty, and production complexity on the adoption of electronic data interchange (EDI) technology. A holistic approach was taken whereby LISREL was used to test the model, and the results show that larger organizations and those more intensively utilizing JIT techniques increasingly adopt EDI technology. Environmental uncertainty and production complexity had no effect on EDI technology adoption.

The Design of Logistics Organizations

The design of logistics organizations is examined on several dimensions: (1) the existence of a written mission statement and plan; (2) the number of layers and the span of control; (3) specialization in eight areas; (4) decentralization in eight specific areas; and (5) three types of integrative efforts across departments. (6) For each of these dimensions, we examine whether firm size, production technology routineness and demand uncertainty have any impact on the organization of logistics. In addition, we examine a variable rarely studied in the logistics literature: senior logistics executive tenure.

Output Standardisation and Logistical Strategy, Structure and Performance

This empirical research investigates the effect of product standardisation on logistics in a cross‐section of United States manufacturers. Relying on contingency theory, the effect of product standardisation on the structure of logistics within the organisation, logistical strategy and logistical system flexibility are examined. In comparison to manufacturers that standardise output, those which customise output were found to consolidate fewer logistics activities centrally within a single department, to be less formalised, to update their logistics strategic plan more frequently and to display greater logistical flexibility.