This paper identifies areas of distinctive competence in the operations function of e‐commerce companies. Exploratory case studies were conducted in five e‐commerce companies in Argentina. The distinctive competencies that emerged were divided into three sets referring to upstream, downstream, and structural areas and integrated into a framework of the general e‐commerce process. The findings suggest that operations‐based competitiveness in e‐commerce requires the development of a series of distinctive competencies, that those competencies are often related and mutually supportive, and that there is usually a linkage between distinctive competencies in e‐commerce operations and the business strategy.
PurposeThis study theoretically articulates and empirically validates a model of relationships between market complexity (competition intensity, heterogeneity and technological change), strategic focus on product and service differentiation, ADS offerings and differentiation advantage.Design/methodology/approachThe authors develop and test hypotheses through structural equation modeling based on data from the Sixth International Manufacturing Strategy Survey (IMSS-VI), involving 931 manufacturers from 22 countries.FindingsThe results indicate that (1) market complexity has a positive impact on strategic focus on product and service differentiation; (2) focus on product and service differentiation, but not market complexity, has a positive impact on the extent to which business units offer ADS to their customers; (3) ADS have a positive impact on service differentiation advantage, but no influence on product differentiation advantage.Practical implicationsManagers should incorporate decisions related to ADS provision as part of their manufacturing strategy formulation processes to align markets, strategic focus on product and service differentiation, and ADS provision. ADS seem an appropriate lever for market differentiation, because they appear not only to support service differentiation advantage, but also to be consistent with strategic focus on product differentiation.Originality/valueThe study provides novel insights and large-scale empirical evidence on the influence of the market environment on the offering of ADS, as well as on how relationships between the product and service activity in the manufacturing organization may affect differentiation advantage.
Purpose The purpose of this paper is to examine the relationship between product customization and servitization strategies, specifically the relationship between product customization strategy intensity and degree of servitization (offering of basic and/or advanced services) and the moderating role of product customization strategy alignment on that relationship.
Design/methodology/approach The authors develop and test hypotheses through partial least squares path modeling to analyze data from the Sixth International Manufacturing Strategy Survey, involving 931 manufacturers in 22 countries.
Findings The results indicate that customization strategy intensity is positively associated with the offering of basic and advanced services; these relationships are not moderated by customization strategy alignment.
Practical implications Manufacturers pursuing product customization strategies may be especially well positioned to servitize, even those with misalignment in strategic choices. Paradoxically, while manufacturers of standard products might look at servitization as an attractive strategy to differentiate their value proposition, they appear to be less servitized than manufacturers pursuing product customization.
Originality/value This is one of the first studies to examine how manufacturing strategy choices (intensity and alignment) influence the adoption of servitization strategies. The study introduces manufacturing strategy as a contingency factor that influences the adoption of servitization, answering calls for the study of servitization contingencies.
PurposeThe purpose of this paper is to theoretically articulate and empirically test an integrated model of capability antecedents and performance outcomes of servitization strategies. The authors characterize servitization strategies based on the offering of two types of services: basic services (BAS) and advanced services (ADS).Design/methodology/approachHypotheses are tested based on statistical analyses of a large survey of manufacturers from different countries and sectors.FindingsThe authors find that manufacturing capabilities associate with the provision of BAS, while service capabilities associate with both BAS and ADS; BAS do not impact financial performance, but support the offering of ADS; there seem to be naturally occurring servitization trajectories involving the gradual development of balanced levels of BAS and ADS and adequate levels of manufacturing and service capabilities.Research limitations/implicationsThe findings on servitization trajectories are based on the observation of manufacturing business units at different stages of servitization (cross-sectional data).Practical implicationsManufacturers wishing to servitize should distinguish between BAS and ADS and deploy a balanced adoption of BAS and ADS, using BAS as a platform. This should be accompanied with the building of appropriate capabilities.Originality/valueThis is one of the first studies to show an explicit link between different servitization strategies, capabilities, and servitization maturity. It provides new insights into the servitization paradox and servitization trajectories.
PurposeThe purpose of this study is to explore the relationship between interorganizational information system (IOIS) adoption in supplier coordination and operations performance improvements.Design/methodology/approachThe paper focuses on the association between dyadic and multilateral IOISs and improvements in performance priorities associated with stable and dynamic supply networks, using data on 201 manufacturers in 13 countries from the international manufacturing strategy survey (IMSS) database. Regression models were used to test relationships between IOIS adoption and operations performance improvements.FindingsAnalysis indicates that dyadic IOISs appear to be more associated with the performance priorities of stable supply chains (cost, delivery, and quality), while multilateral IOISs appear to be more associated with the performance priorities of dynamic supply chains (flexibility and quality).Research limitations/implicationsSurvey data were collected in the years 2000 and 2001. Some of the conclusions might be reassessed in light of recent developments in information technology. Data were limited to medium/large manufacturers of fabricated metal products, machinery, and equipment.Practical implicationsFindings suggest that the choice of IOISs must follow the company's product portfolio and supply chain configuration. Dynamic networks with innovative products may benefit from multilateral IOISs; stable networks with functional products may benefit from dyadic IOISs.Originality/valueThis appears to be the first study to provide empirical evidence to performance effects of IOISs in light of existing supply chain frameworks.
PurposeThe purpose of this paper is to investigate the role of compensation‐based incentives in relationships between enterprise resource planning (ERP) usage and delivery performance in manufacturing.Design/methodology/approachThe authors carry out two studies exploring links between ERP, incentives, and performance from alternative perspectives: first, of incentives tied to regular production activities, and their relationship with delivery performance advantage over competitors; second, of incentives tied to improvement activities and their relationship with delivery performance improvements. Statistical analysis is carried out on data from 698 metal‐working manufacturers from 22 countries, giving a broad cross‐sectional view of a global industry.FindingsThe studies indicate that ERP usage relates positively with both delivery advantage and delivery improvements. Furthermore, incentives tied to improvement initiatives may explain delivery improvements, both directly and as moderators in the relationship between ERP and performance.Research limitations/implicationsThe results suggest that ERP adoption can be framed as a principal‐agency phenomenon where performance outcomes are partially influenced by incentives.Practical implicationsThe results imply that incentives tied to improvement initiatives may foster employee engagement with the new ERP, leading to stronger delivery performance benefits.Originality/valueTo the best of the authors' knowledge, this is the first research to explore ERP usage as a principal‐agency problem, and to analyse its relationships with incentives under alternative performance perspectives. The results may significantly contribute to the knowledge of ERP‐performance relationships and the role of incentives.
PurposeThe purpose of this paper is to explore the critical success factors (CSFs) of enterprise resource planning (ERP) system implementation in small and medium‐sized enterprises (SMEs).Design/methodology/approachFive case studies of Canadian SMEs were conducted. They included interviewing individuals from five roles at each organization and gathering project documents. Following an evaluation of each project's success (within‐case analysis), cross‐case analysis was conducted to elicit influential and distinctive factors.FindingsFactors were identified that appeared to explain variation between successful and unsuccessful implementations at SMEs, besides factors that appeared to be innovative or counter‐intuitive in light of the established literature.Research limitations/implicationsThe study reinforces the need for more research that is focused on SMEs. All cases were of Canadian SMEs with either a manufacturing or distribution focus, potentially limiting the generalizability of findings to other industries or countries.Practical implicationsBy identifying relevant CSFs for SMEs, managers can better prioritize implementation efforts and resources to maximize success of ERP implementations.Originality/valueThe paper appears to be one of the first studies to focus on the CSFs of ERP implementation at SMEs.
PurposeThe paper sets out to test relationships between performance improvements and the three classical manufacturing strategy paradigms of fit, best practices, and capabilities defined by Voss.Design/methodology/approachRegression analyses are carried out on an international sample of 697 manufacturers of fabricated metal products, machinery, and equipment.FindingsThe results indicate that capability learning and best practices are positively related to performance improvements in quality, flexibility, and dependability, whereas internal fit appears to be negatively related to flexibility improvements.Research limitations/implicationsThe study reinforces the need for research to explore the nature and role of the three paradigms jointly rather than in isolation. In particular, more research is needed to assess the merits of maintaining fit between operations structure and processes.Practical implicationsImproving performance in areas such as quality, flexibility, and delivery can be achieved through building capabilities and/or adopting best practices, but not apparently by maintaining internal fit between operations structure and processes.Originality/valueThe study validates two of the three classical paradigms of manufacturing strategy and makes the case for research to further specify and test the merits of maintaining internal fit between operations structure and processes.
