Value creation by Turkish enterprises

This study focuses on the resurgence of the automotive and appliance sectors in Turkey’s recent years. The analysis of both these sectors reveals some interesting lessons about technology management and investment strategies for companies to invest in Turkey. We discuss the major changes and project the future in both industries. Turkey seems to be a clear winner though there are some factors that could reverse the trend. The research is a joint field study partne rship between Carnegie Mellon and Sabanci Universities

Effectiveness of R&D project selection in uncertain environment: An empirical study in the German automotive supplier industry

This paper presents results of an empirical large-scale study on uncertainty reduction of R&D projects and R&D project selection. The empirical field is the German automotive supplier industry. We explore R&D project selection practices in this specific industry and briefly contrast our findings with the academic research and management literature in this field. We concentrate on answering three research questions (with focus on questions no. 1 and 2): I. Which information and related uncertainties are crucial for the product selection decision to the R&D decision makers? II. How do R&D decision makers today cope with typical challenges related to reducing uncertainty? Where do they face major problems and how effective are they? III. What are major implications for managing the Fuzzy Front End (FFE) of innovation process in industry practice and respectively for further academic research in this field? Key findings are that on the one hand certainty about fields of product applications, target markets and production feasibility are most important criteria for initial product selection decisions. On the other hand market and cost related uncertainties (e.g. sales volume, product price, cost per unit) cannot be satisfyingly reduced in practice before project approval for development or definite termination of projects. Although different uncertainty profiles exist within the process of project evaluation, most companies do not systematically choose available product selection methods and tools according to specific uncertainty situations. Intuition still plays a major role in R&D product selection. Some first conclusion drawn from this research are: A sufficient level of resources (including financial and methodological know-how), a systematic use of suitable project selection instruments, and a fit with the company specific as well as the OEMs' product/brand strategies can be potential levers for more effective uncertainty reduction before product decision. --

An assessment of supply chain and innovation management practices in the manufacturing industries in Turkey

This paper aims at assessing the supply chain and innovation management in the manufacturing industries in Turkey on an empirical basis. The assessments presented are based on parts of the data and information collected through the execution of the Competitive Strategies and Best Practices Benchmarking Questionnaire in 82 companies from four sectors of the manufacturing industries in Turkey. Results of these sectoral benchmarking studies reported elsewhere indicate the need of adopting product differentiation particularly through more knowledge intensive products as the dominant competitive strategy and also the need for improvement in various areas of supply chain as well as innovation management. In this paper, these issues are analysed through the survey results and some conclusions are drawn. Several policy measures applicable in near future are suggested for improving the areas found in need of improvement

Real Options: Applications in Public Economics

This paper illustrates the use of real options principles to value prototypical resource and industryinvestment projects. It captures important competitive/strategic dimensions in a step-by-stepanalysis of investment decisions (options) under uncertainty. It compares and contrasts staticdiscounted cash flow analysis (DCF) with real options analysis using three case studies. The initialexample values a resource extraction process using static DCF and then compares the projectvaluation when future information is valued and acted upon. The second example considers a coaldevelopment and uses the binomial valuation approach to capture the option value associated withhaving the right but not the obligation to exit the development. It contrasts this valuation approachagainst static DCF and highlights that future royalty payments could be underestimated if based onthe standard DCF valuation. The third example analyses the impact of providing a subsidy forhybrid vehicle production to accelerate potential uncertain environmental benefits. Lastly, thesuitability of the standard financial and economic evaluation tools used by treasury agencies isconsidered when projects contain real options.financial economics; investment decisions; public economics; externalities; subsidies; project evaluation

Anatomy of a Governance Transformation: The Case of Daimler-Benz

Logue and Seward examine the evolutionary transformation in the corporate governance structure of Daimler-Benz AG, the largest German industrial company. Over the last several years, Daimler-Benz has taken numerous steps toward prioritizing shareholder value more intensely than ever before

A review of modular strategies and architecture within manufacturing operations

This paper reviews existing modularity and modularization literature within manufacturing operations. Its purpose is to examine the tools, techniques, and concepts relating to modular production, to draw together key issues currently dominating the literature, to assess managerial implications associated with the emerging modular paradigm, and to present an agenda for future research directions. The review is based on journal papers included in the ABI/Inform electronic database and other noteworthy research published as part of significant research programmes. The research methodology concerns reviewing existing literature to identify key modular concepts, to determine modular developments, and to present a review of significant contributions to the field. The findings indicate that the modular paradigm is being adopted in a number of manufacturing organizations. As a result a range of conceptual tools, techniques, and frameworks has emerged and the field of modular enquiry is in the process of codifying the modular lexicon and developing appropriate modular strategies commensurate with the needs of manufacturers. Modular strategies and modular architecture were identified as two key issues currently dominating the modular landscape. Based on this review, the present authors suggest that future research areas need to focus on the development and subsequent standardization of interface protocols, cross-brand module use, supply chain power, transparency, and trust. This is the first review of the modular landscape and as such provides insights into, first, the development of modularization and, second, issues relating to designing modular products and modular supply chains

Decision support for build-to-order supply chain management through multiobjective optimization

This paper aims to identify the gaps in decision-making support based on multiobjective optimization for build-to-order supply chain management (BTOSCM). To this end, it reviews the literature available on modelling build-to-order supply chains (BTO-SC) with the focus on adopting multiobjective optimization (MOO) techniques as a decision support tool. The literature has been classified based on the nature of the decisions in different part of the supply chain, and the key decision areas across a typical BTO-SC are discussed in detail. Available software packages suitable for supporting decision making in BTO supply chains are also identified and their related solutions are outlined. The gap between the modelling and optimization techniques developed in the literature and the decision support needed in practice are highlighted and future research directions to better exploit the decision support capabilities of MOO are proposed

Make-or-buy configurational approaches in product-service ecosystems and performance

This research examines firm boundary configurations for manufacturers' product-service offerings. We argue that the building of a product-service ecosystem through collaboration with service providers in certain types of business services can increase performance as a result of the superior knowledge-based resources coming from specialized partners. By using fuzzy set qualitative analysis on a sample of 370 multinational manufacturing enterprises (MMNEs), the results reveal that effective servitization is heterogeneous across manufacturing industries and across business service offerings. The findings indicate that most industries achieve their highest performance through collaborations with value-added service providers in two out of three of the service continuum stages (Base and Intermediate services); while keeping the development of Advanced services in-house. The results help to contextualize the best practices for implementing service business models in MMNEs by detailing which service capabilities should be retained in-house and which should be outsourced to specialized partners in various industrial contexts.Peer ReviewedPreprin