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PurposeSmart Manufacturing (SM) lies at the core of Industry 4.0. Operations management research has investigated the determinants of SM advancement but there is still limited understanding of the linkages between SM and organizational factors and about whether both the technological and organizational subsystems for SM are guided by firms' competitive priorities. To close these gaps, building on operations strategy theory, this paper aims to empirically test a model positing that competitive priorities drive SM advancement. The relation between competitive priorities and SM advancement is assumed to be mediated by organizational microfoundations.Design/methodology/approachUsing data from a single respondent survey with 234 firms in the automotive component industry, structural equation modeling is adopted to test the model hypotheses. Relevant constructs are measured with reference to the lead plant for SM.FindingsFindings highlight that SM advancement is driven by the need to simultaneously compete in terms of cost, quality and delivery, thus suggesting that manufacturers view SM as a mean to develop multiple manufacturing capabilities. Organizational microfoundations fully mediate the relation between competitive priorities and SM advancement.Originality/valueResults have implications for SM research, as they provide an understanding of the strategic priorities of firms engaging in SM. Findings also bear relevance for manufacturing executives engaged in the SM transformation, as they provide quantitative evidence that shaping an adequate organizational environment is a prerequisite for SM advancement.

PurposeSmart Manufacturing (SM) lies at the core of Industry 4.0. Operations management research has identified several factors influencing firms' ability to adopt SM. However, a clear understanding of capabilities needed to progress in SM is still missing. This paper aims to investigate how absorptive capacity (AC) allows firms to advance in SM and explore how managerial antecedents support the capacity to absorb SM-related knowledge at different stages of SM adoption.Design/methodology/approachThis study adopts an exploratory approach through multiple case studies. Twelve firms, operating as part of the automotive supply chain and exhibiting different stages of SM adoption, constitute the sample.FindingsThe results suggest that advancement in SM requires firms to progressively reinforce their AC. Firms' ability to acquire and assimilate SM knowledge is supported by managerial antecedents encompassing integrative capacities to bridge old and SM technologies, managerial cognition through the clear alignment of SM technologies with strategic goals and knowledge development capabilities through practices oriented to provide senior managers with SM competences.Originality/valueThe findings contribute to SM research by suggesting that AC is a crucial dynamic capability for SM adoption. The results also provide evidence-grounded recommendations to firms engaged in the digital transformation on the managerial capabilities needed to support AC and to progress from lower to higher stages of SM.

PurposeThe internet of things (IoT) is one of the pillars of Industry 4.0. Prior OM research has conceptualized IoT, and analyzed potential applications and risks and challenges associated with its adoption. However, little empirical evidence exists on the main types of IoT projects undertaken by organizations and on their impacts. The purpose of this paper is to close this gap by searching for a taxonomy of IoT projects that may be associated to different IoT readiness levels. The dynamic capability lens is used as the theoretical background for the analysis.Design/methodology/approachA database of secondary IoT case studies is used to identify an IoT project taxonomy through two-step cluster analysis. The taxonomy obtained allows classifying projects into homogenous groups by technological novelty, IoT capabilities and functional areas of application. ANOVA is then used to test for the association between cluster membership and alternative operational impacts. Finally, the analysis of selected case studies from the database allows throwing light on the nature of the projects typical of each cluster.FindingsFive clusters of projects have been identified and positioned along varying degrees of capabilities, novelty and scope. The taxonomy is consistent with a three layer IoT technological readiness model. In turn, the three IoT readiness levels correspond to three managerial capabilities: monitoring, control and optimization. Combining cluster results with detailed case analysis suggests that IoT technological readiness can be interpreted as a dynamic capability enabling knowledge creation that can support competitive advantage.Originality/valueThis is a first attempt to describe projects firms undertake when adopting IoT. Building on cluster analysis, the study suggests that different IoT readiness levels are needed to reach different impacts.

PurposeThe purpose of this paper, in the context of hospital wards, is to test a model in which the ward manager's orientation towards a given organizational climate contributes to determine the climate perceived by medical and nursing staff, and this, in turn, has an impact on patient satisfaction.Design/methodology/approachThe design of the study is cross‐sectional. The manager's climate orientation, employee perceptions of organizational climate, and patient satisfaction questionnaires were administered to ward managers, medical staff, and inpatients in 57 wards belonging to ten public hospitals in Italy. The hypothesised model was tested using two‐level structural equation modelling.FindingsDifferent climates impact on patient satisfaction in a different way. Evidence was found that a human relation climate augments patient satisfaction. Ward managers' orientation on specific organizational models is matched by the actual climate perceived by medical and nursing staff. Comparison between alternative nested models shows that there is evidence in favour of the mediating effect of climate between the managers' climate orientation and patient satisfaction.Research limitations/implicationsThe main limitation of the paper is the cross‐sectional nature of the data set, which does not allow for definitive conclusions on the direction of causality links.Practical implicationsUnderstanding the link between climate and patient satisfaction may guide hospitals towards a more conscious selection of the appropriate organizational model.Originality/valueThe contribution of the present paper to the extant literature is twofold. First, it verifies whether the ward manager's climate orientation is matched by the organizational climate as perceived by subordinates. Second, it investigates the mediating role that organizational climate plays between ward managers' orientations and patient satisfaction.

Purpose
– The purpose of this paper is to present a framework for the analysis of reshoring. The framework is then applied to analyze motivations for reshoring, as they emerge from extant literature and from new evidence collected.


Design/methodology/approach
– The authors start by formulating a literature-grounded definition of reshoring and reviewing some key theoretical approaches for international manufacturing location. In light of these theories, the authors then propose an interpretative framework for the analysis of reshoring motivations. Finally, the authors provide new evidence on this phenomenon, by presenting the findings of an extensive data collection of reshoring cases built on secondary data.


Findings
– The authors show that a vast array of single drivers of reshoring can be extracted from extant literature; however, the interpretative framework eventually highlights four main typologies of reshoring motivations, thus allowing for a more sound comprehension of why the phenomenon happens. The empirical investigation proves also useful in comparing the relative importance of these motivations, as it reveals that value-driven and country-specific motivations prevail over efficiency-driven and firm-specific ones, respectively.


Research limitations/implications
– The study is based on the analyses of secondary data extracted from newspapers and magazine sources. Some motivations (and especially those that configure a "correction of a previous erroneous decision") could have been underestimated. In addition, certain industries (e.g. clothing and footwear), certain countries (USA and China), and certain firms (large companies and MNCs) could have more visibility to the media. Another possible limitation is due to the fact that the classification work inherently implied some discretion and individual judgment. The authors however spent considerable efforts in cross-validating the assessments through extensive discussion within the research team.


Originality/value
– This is the first paper that summarizes the motivations of the rising reshoring phenomenon and interprets them based on an original theory-derived classification framework.