A comparative Test of the Efficiency, focus and Learning Perspectives of Outsourcing

Despite the fact that vertical integration has been a key question of management studies for more than fifty years, we still do not have a unified, coherent view of outsourcing. In particular, multiple theoretical perspectives such as transaction cost economics, industrial organization, and strategy, could explain the outsourcing decision, but the implications of these different streams have neither been theoretically integrated, nor tested simultaneously. In an attempt to disentangle the various causes of outsourcing, we suggest three different rationales for outsourcing: cost reduction, focusing on core capabilities and importing knowledge into the firm. We develop several hypotheses, which we then test on secondary data on French small- and medium-sized enterprises. Results indicate that the learning rationale appears to be the strongest factor influencing the outsourcing decision. Some performance implications of this rationale are also suggested and tested.outsourcing; transaction cost economics; resource-based view; knowledge-based view

A framework for optimising product performance through feedback and reuse of in-service experience

AbstractOptimising performance of complex engineering artefacts, which are typically designed to have a useful life of several decades, becomes very difficult during in-service if lessons learnt are not used properly. The authors argue that performance of long-lived complex artefacts can be improved if adequate product in-service data is fed back to the early stages of the product life cycle. This paper discusses an inclusive life cycle approach to optimising product performance by using knowledge and experience gained during in-service. The problem is presented alongside a review of literature of relevant subject areas. A framework for in-service knowledge management is then presented and operationalised through an industrial case study. The framework is developed from the point of view of an integrated product and service provider. The findings from the case study demonstrate how in-service knowledge can be captured, fed back and reused for the design and manufacture stages of the product lifecycle. This enables designers to learn from in-service product performance by informing subsequent designs with in-service knowledge, and consequently improving the through-life product performance

Global performance index for integrated management system: GPI-IMS

Background: The present work starts from a literature review of the evolution of Integrated Management Systems (IMSs), considering different points of view and standards: quality, environmental, occupational health and safety, sustainability and social issues. Even if the benefits are possible, there is not a common approach and a clear link between the integration of management systems and business performance, in particular considering safety performance. Methods: The present study analyzes the application of Risk Assessment in order to realize the integration of management systems. The main objective is to provide a tool for an integrated evaluation of all company performances, starting from the definition of some Key Performance Indicators—KPIs— proposed for a particular case study, even if their choice is not the core of the paper. The assessment team members on the basis of their knowledge, experience and useful literature, could choose the right KPIs for the specific application, able to take a picture of the current state and to suggest a possible recommended action of improving. The proposed Risk Assessment approach is an integration of modern management techniques: Integrated Management System and Improving Cycle DMAIC. Results: The new method, called the Global Performance Index for Integrated Management System—GPI-IMS, has been applied to a real case study in the logistic field in order to evaluate its goodness and possible generalization. Conclusions: The proposed method allows to define the requirements that any company must have to perform the best. The role of the assessment team is very important to evaluate the global performance of the company and to suggest the corrective actions to be adopted

Intellectual capital and company performance: the moderating effects of business strategy in the context of resource-based and knowledge-based theories / Aminuddin Shamsuddin

Malaysia aspired to transform its economy from an industralizing economy into a knowledge-based economy that is expected to help in achieving its Vision 2020. However, the new competitive landscape brought about by the shift into knowledge economy has presented companies with unprecedented strategic challenges for leveraging and making knowledge more productive as a competitive resource in a complex and unpredictable environment. Competitive success of businesses is depending more on strategic management of intellectual capital (IC) and less on the strategic allocation of physical and financial resources. The Resource-based Theory views that company resources such as IC are the key drivers of competitive advantages and vital to company financial performance. Meanwhile, the Knowledge-based Theory further supports the view that unique sets of knowledge, and the distinctive ways in which knowledge is integrated and organised by the company, can generate capabilities that either create or support a company’s competitive advantage. With this development, companies have begun to recognise the importance of IC. This study investigated IC within an organisational context by examining IC and how it impacted company’s performance. The initial focus was on determining the main effect between IC and performance; followed by exploring the individual effects of the IC components on performance. The findings led to the development of an IC index for Malaysian companies. Thus, the study came up with a model named Malaysian Intellectual Capital Index (My-ICI)

MANAGEMENT ACCOUNTING SYSTEMS, INTELLECTUAL CAPITAL AND PERFORMANCE: AN INTEGRATED APPROACH

The purpose of this study is to empirically test the relationship between management accounting systems (MAS), intellectual capital (IC) and organizational performance. It is highlighted the role of MAS as information networks that collect, process and communicate information that influence the development of IC, as well as networks of relationships that support the establishment of conditions for the creation and integration of organizational knowledge. An arguably complete framework of the relations between MAS, IC and performance is developed and empirically tested using structural equation modelling. A questionnaire was developed to conduct a survey of senior managers of Portuguese companies. The study provides an integrated view of the relations between MAS, IC and performance, from which are deduced strong interdependencies between variables. Statistical support was found for six out of nine hypothesized relationships, allowing at a clear evidence of the ability of MAS to assist the development of the different dimensions of IC and therefore IC as a whole

Strategic Transformations in the Media

Digital technologies have transformed the way many media organisations have conducted their business over the past two decades. This transformational context raises a number of important questions for media management researchers. Firstly, how have media firms adapted their strategies, resources and capabilities in response to the challenges presented by an increasingly digital environment? Secondly, how have these adaptive practices affected their corporate financial performance? This paper advances our theoretical understanding of media firm transformation by using a multi-disciplinary approach that draws on knowledge from corporate strategy, dynamic capabilities and firm performance. This integrated approach provides a more holistic view of strategic business transformation by understanding the strategic arguments that compel firm’s to reconfigure their resources and capabilities in a dynamic business environment

Strategic Marketing Management: Achieving Superior Business Performance through Intelligent Marketing Strategy

AbstractIn the age of drastic changes organizations need sustainable competitive advantage to cope with changes and to succeed. They can create, sustain and use competitive advantage through strategic management. Organizations can formulate strategies that their implementation results in sustainable competitive advantage. Marketing strategies seem to be an important type of these strategies. Traditionally, according to an integrated approach which integrates resource-based view (RBV) and market-based view, organizations could develop marketing strategies based on their internal capabilities and external position. Then they implement these strategies to create competitive advantage through their core competencies include creating value for customers, attracting and satisfying them. Marketing strategies play two important roles to sustain competitive advantage: (1) encourage customers to return (according to market-based view), and (2) create distinctive competencies through making core competencies VRIO (according to RBV). VRIO refers to Valuable, Rare, not Imitable and to be able to Organize. In today's turbulent environment, VRIO and customer retention are necessary but not adequate to sustain competitive advantage and achieve superior performance. Then organizations must be market/customer oriented, think and act based on innovative knowledge, make a useful and long term relationship with their customers. This qualification is for those organizations that are able to be knowledge-based, formulate its marketing strategies and sustain its competitive advantage based on its own knowledge. In other words its marketing strategy is intelligent. Organizations must consider innovative knowledge as a new input to sustain competitive advantage and to develop intelligent marketing strategy (more than internal capability and external position as existing inputs). In this paper, we are going to contribute a new perspective to develop marketing strategy. It is sustaining competitive advantage and developing intelligent marketing strategy (IMS) through innovative knowledge to achieve superior performance. Accordingly we have developed a comprehensive model of Intelligent Marketing Strategy

Sequels to the Chicago Aviation Conference

This research aims to explore and propose a more effective management of rail and road infrastructure and the possibility of a more resource-efficient road and rail infrastructure by applying business models based on performance and a life-cycle perspective. There is a lack of efficiency in the Swedish rail and road infrastructure industries - at the same time as the availability of the rail tracks and roads is essential. Rail and road infrastructure have long lifetimes, around 40-60 years, and during these decades regular maintenance and reconstruction are needed to ensure proper function. Large amounts of resources are required to construct the infrastructure, and the overall environmental pressure depends substantially on this. This research is largely based on interviews conducted with the buyer, contractors and design consultants for rail and road infrastructure in Sweden. Literature reviews have been conducted to develop the framework needed to analyze the empirical findings. This research contributes by building on theory in areas such as Integrated Product Service Offerings (IPSOs) and eco-design, and this abstract presents a brief summary of the overall conclusions. Several challenges for rail and road infrastructure in Sweden have been identified, such as the lack of information and knowledge transfer between different projects and actors. This is due to e.g. the use of traditional short-term contracts and conservative cooperate cultures, creating sub-optimizations in management. Increased collaboration, through e.g. partnering, seems to be a promising way to increase the information and knowledge transfer between actors by increasing trust and interaction. In this way, management would be more effective, and by involving contractors in the design phase, more efficient technical solutions could be developed and used. Additionally, increased involvement by the design consultants and an iterative information loop between design, construction and maintenance could also be beneficial. The research indicates that increased cooperation increases trust. In this way, there is a possibility to remove the detailed requirements that prevent new ways of working. Rail and road infrastructure have characteristics, such as the resources used and the importance of availability, that are well-suited for IPSOs. This performance-based business model with a life-cycle perspective provides incentives to optimize the use of resources and provide a holistic view for management that is lacking today for rail and road infrastructure. However, a long-term contract such as an IPSO creates uncertainties. The actors are risk-averse, which is an obstacle in the development of new business models and contract forms. Most of the risks and uncertainties identified are due to lack of experience. This implies that an implementation of IPSOs will have a steep learning curve. Additionally, risk allocation between the actors is important for effective management: too much risk for the suppliers will make them reluctant in developing new solutions, and they will use a risk premium to cover up for the risk

Improving performance in project - based management: synthesizing strategic theories

Purpose The purpose of this paper is to explore benefits and issues of integrating the theory of constraints (TOC), resource-based view (RBV) and resource-dependence theory (RDT) with conventional project-based management frameworks. Design/methodology/approach Extant literature is used to develop a conceptual framework of an integrated model that will be tested for applied robustness. The model has been applied to published projects to identify its strengths and weaknesses. Findings The work shows important implications for improved success of projects from the use of TOC, RBV and RDT. Research limitations/implications While TOC, RBV and RDT are well established in the context of organization theory, there is limited application in project management. Moreover, the model has yet to be applied in the field. The hypotheses identified in this research are currently being tested using empirical investigation. Practical implications The research falls short in addressing some resources, e.g. innovation, tacit knowledge and decision-making methods in traditional project management context. Therefore, identifying these critical resources in future work and exploiting them as the means of improving project performance would enhance the success of project-based management. Social implications Project management is an emergent discipline and a project is temporary in nature. Therefore, new ideas and development of theories for project management practices are required. This innovative research, for example, may change the way projects are executed in future. Originality/value This paper examines the components of a successful project according to the iron triangle, i.e. scope, quality, time and cost. However, through the application of TOC, RBV and RDT into an integrated project-based management framework gives new insights to resources management

Managing knowledge in IT-based innovation: the case of business-to-business electronic commerce implementation

This thesis is concerned with understanding the way in which knowledge is managed in IT-based innovations. Although there is a growing body of research on how to leverage knowledge to improve organisational performance, particularly in the field of "knowledge management", most studies divorce knowledge from its context and fail to consider the purpose for which knowledge is managed. One such purpose is the integration of IT-based innovations, during which knowledge about complex IT is integrated with context-specific organisational knowledge, in order to develop firm-specific solutions. However, existing research in IS implementation and IT-based innovation tends to be fragmented and falls short of providing a comprehensive analytical framework for understanding the management of knowledge in IT-based innovations. An analytical framework based on the processes of knowledge creation, sharing and retention is developed by reviewing literature in the area of knowledge management, IS implementation, IT-based innovation and organisational knowledge. As this research adopts a constructivist view of IT and knowledge, an interpretive case study approach was selected for the empirical investigation. The implementation of B2B e-commerce was selected, as it has been commonly described as knowledge-intensive. This research provides both a chronological and thematic description guided by the analytical framework of the integration of B2B e-commerce at ComCo and AutoCo, two large original equipment manufacturers in the vehicle manufacturing sector. One major contribution of this research is the development of an analytical framework that focuses specifically on understanding the management of knowledge in the integration of IT-based innovations. The analysis has revealed the existence of "knowledge phases" - periods of time in which the relationship between knowledge creation, sharing and retention is based on a stable pattern of organisational activities in order to serve a specific purpose