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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.

PurposeIn the multilayered capability framework the authors integrate two layers, namely functional level production capabilities and shop floor-level production routines (PRs). The authors examine how these two layers are interlinked, and additionally, they explore how these layers contribute to firm performance.Design/methodology/approachThe authors tested the hypotheses using structural equation modeling (SEM) on a sample of manufacturing firms.FindingsRegarding the capability layers, the authors found that at the functional level, production dynamic capabilities (PDCs) drive the renewal of production ordinary capabilities (POCs), and that at the shop floor level, deployment of Industry 4.0 (I4.0) is influenced by lean production. Regarding the direct links between capability layers, the authors showed that PDCs and POCs have different roles in shaping shop floor PRs: PDCs is linked to I4.0, and lean methods is impacted by POCs. Concerning performance implications, only PDC and POC have significant impact on firm performance (the latter is negative), while PRs do not.Research limitations/implicationsAlthough, contextual factors (e.g. technology intensity, size) do not influence our findings, the potential country-effect and the dominance of medium-sized firms offer future research directions.Practical implicationsIf production managers want to contribute to business performance, they should be more susceptible to resource renewal (PDCs) than to their general (POCs) or specific (PRs) exploitation efforts. As they exploit current resource stocks, they face a trade-off: they must consider that beyond their positive impacts on operational performance, their implications on business performance will be controversial.Originality/valueScholars usually examine one layer of capabilities, either capabilities or routines, and associate that with one dimension of performance, either financial and market measures or operational indicators. The authors propose a multilayered capability framework with a complex view on performance implications.

Purpose
Many firms today operate international manufacturing networks (IMN) of plants, which may serve different purposes and have different levels of competences. This diversity influences the effectiveness of different manufacturing practices, which has not yet been explored in the literature. The purpose of this paper is to investigate the relationship between plant role and the "goodness" of its manufacturing practices.


Design/methodology/approach
Data are used from a sample of 471 plants from the sixth edition of the International Manufacturing Strategy Survey.


Findings
The findings show that plants with higher competences use more practices successfully than less competent plants. Furthermore, more competent plants tend to strengthen their differentiation performance, while less competent plants focus on and achieve cost performance improvements instead.


Practical implications
The associations between plant role, manufacturing practices and performance provide important input for the global design of a firm's IMN as a whole, and the development of local plants within the network.


Originality/value
The "goodness" of manufacturing practices has not been investigated in the plant role literature; the effect of plant role on the "goodness" of manufacturing practices has not been studied in the OM contingency literature. This paper shows that while the role of a plant in a firm's IMN hardly affects the efforts it puts into implementing different manufacturing practices, it has an important moderating influence on the performance implications of these practices.

PurposeThe purpose of this paper is to address the extent to which quality management is "culture‐specific".Design/methodology/approachThe paper presents the results of a survey administered across 21 countries that seeks to examine quality priorities and practices by adopting the global leadership and organizational behaviour effectiveness (GLOBE) framework. Data were collected in 2006 as part of the fourth iteration of the International Manufacturing Strategy Survey. The methodology involved the use of a self‐administered questionnaire to director/head of operations/manufacturing in best practice firms within the sector of firms classified by ISIC codes (rev.3.1) Divisions 28‐35.FindingsFrom this study, it emerges that adopting the GLOBE framework provides an invaluable insight into understanding quality management across countries. In particular, the findings show that some national cultures are more conducive to the implementation of quality management than others.Practical implicationsThe analysis of the data leads this paper to endorse the idea that through an accumulation of scientific knowledge relevant to the applicability of quality management across national settings, managers can better understand how to transfer best quality management practices from one country to another.Originality/valueWhile some previous research portrays quality management as a comprehensive management paradigm with elements and relationships that transcend cultural and national boundaries, the current study provides evidence that the adoption of certain quality practices across different countries can follow distinctive patterns.

PurposePost‐project reviews (PPRs) are widely recommended as an appropriate mechanism to stimulate project‐to‐project learning in new product development (NPD) teams. However, empirical research on their potential is limited and so this study aims to answer two questions: how do NPD professionals perceive PPRs? and is tacit knowledge created during PPRs?Design/methodology/approachFive in‐depth case studies were conducted in German companies. The main sources of data were: company documentation; in‐depth interviews with managers; and observation of PPRs. The different data sources enabled extensive data triangulation and a high degree of reliability and validity to be achieved.FindingsThe results indicate that NPD personnel perceive PPRs to be a very useful mechanism. They also show that social interactions and tacit knowledge play key roles in NPD learning.Research limitations/implicationsTacit knowledge was investigated using a proxy measure – the usage of metaphors and stories in NPD discussions and documents. More robust ways of studying the generation and transfer of tacit knowledge are needed. The whole area of knowledge and learning in NPD requires significant further study.Practical implicationsManagement needs to drive the dissemination of the results of PPRs more effectively, in order to make more use of the tacit knowledge generated.Originality/valueThe main contributions of this study are the insights it provides on how PPRs are perceived and the exploratory investigation it makes of tacit knowledge – a complex topic that has previously only been discussed at a theoretical level.

PurposeThis paper aims to describe the extent of supplier access to customer forecast information and the perceived quality of such information and also to explain the impact of forecast information access and forecast information quality (FIQ) on supply chain performance.Design/methodology/approachFIQ is defined, and a measurement instrument is developed from theory. The analysis is based on a survey of the most important suppliers of 136 Swedish companies.FindingsFindings show that a large proportion of the suppliers receive customer forecasts, but that the FIQ is lower further upstream in the supply chain and, in some variables, lower for make‐to‐order suppliers. The greatest information quality deficiency of the forecast was that it was considered unreliable. The only significant difference in supply chain performance found between make‐to‐stock suppliers with and without access to forecast was related to the use of safety stock in finished goods inventory.Research limitations/implicationsThe study contains two types of conclusions: those developed from the conceptual discussion in the theoretical framework and those of the empirical study. In the theoretical framework, measurement instruments for FIQ and supply chain performance (corrective actions, preventive actions and customer service performance) were developed. The study identified several empirical relationships, but it was conducted on a sample with a lot of variation.Practical implicationsThe understanding of the performance impact of FIQ. FIQ shows quality deficiencies on all variables, which indicates room for improvement.Originality/valueResearch on supply chain information quality as well as dyadic research approaches are rare.

PurposeAs enterprises focus on offering integrated product/service bundles, performance‐based contracts become ever so important in ensuring effective delivery. Performance‐based contracts fall under the result‐oriented category of industrial product service systems (PSSs). The paper aims to present a conceptual framework for operations strategy in performance‐based industrial PSSs that will help manufacturing companies configure their operations to support effective delivery of integrated product/service offering.Design/methodology/approachThis paper first develops a conceptual framework for operations strategy in performance‐based contracts by identifying the key elements after a detailed systematic review of literature. A major shift in support and maintenance logistics for complex engineering systems over the past few years has been observed in the defence and aerospace industries. Availability contracting, a special type of performance‐based contracts, is replacing traditional service procurement practices. Two exploratory case studies involving defence availability contracts are conducted for making inferences regarding the operations strategy.FindingsThe important findings of this research are a set of elements of operations strategy guiding the development of a conceptual framework, a set of operating principles and processes supporting effective delivery of performance‐based service contracts.Originality/valueThe true value of this research is to open up the novel area of result‐oriented industrial PSSs operations strategy by capturing the key characteristics of operations using both literature and empirical evidence.

PurposeThis paper aims to explore the influence of human resource (HR) practices in shaping inter‐organisational supply relationships, and to describe the extent to which supply partners seek to adapt their internal HR practices to the external relationship.Design/methodology/approachInter‐organisational relationships are known to be multi‐dimensional in nature. Using seven dimensions to collect empirical evidence, the focus was on a dyadic supply relationship as the unit of analysis. A total of 48 interviews was undertaken from informants in both organisations.FindingsIt is shown that the supply relationship tends to be taken for granted at operational levels, and not subject to the relatively high levels of strategic alignment to be found at senior levels in both organizations. Operational aspects of the relationship are tested primarily in failure mode when poorly prepared to respond, for example, as a result of facility breakdowns and quality problems. Inter‐organisational HR practices were relatively weakly prioritised and – despite their acknowledged importance at operator level – were not clearly identified and supported in the way that intra‐organisational practices were.Originality/valueAn in‐depth, operations‐based study of HR practices has been undertaken in a reciprocally interdependent supply relationship from the perspectives of both partners.

PurposeDespite 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/approachBy 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.FindingsIn 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) are closely interrelated.Originality/valueAlthough this framework for the internationalization decision process is applied in a very specific context, the authors believe that the framework can also be very helpful in understanding these decision processes in a more general setting. In particular, companies in other regions where developed and emerging countries are relatively close to one another might be able to utilize our framework and results (in Asia or America).