Building dynamic capabilities through operations strategy: an empirical example

This paper suggests that the implementation of an effective operations strategy process is one of the necessary antecedents to the development of dynamic capabilities within an organisation and that once established, dynamic capabilities and operations strategy process settle into a symbiotic relationship. Key terms and a model of operations strategy process are proposed from literature as a framework for analysing data from a longitudinal case study with a UK based manufacturer of construction materials

In search of the drivers of high growth in manufacturing SMEs

Though considerable attention in the extant literature has been devoted to growth and performance of firms, there is a dearth of research on high growth firms. Furthermore, the majority of literature in this area focuses on large firms while research on high growth small firms is underdeveloped. This paper investigates the drivers of high growth in manufacturing SMEs. Following a number of focus group interviews with six managing directors of manufacturing firms, a number of drivers of high growth were identified and investigated in a sample of 207 manufacturing SMEs. The results of this study indicate that high growth firms place a greater emphasis on external drivers such as strategic orientation, their operating environment and the use of e-commerce compared with firms having static or declining sales. The analysis shows that high growth firms compete largely on the basis of price. While high growth firms have increased their sales by over 30% during the past three years or longer, it is questionable if manufacturing firms can sustain their competitive advantage without recourse to greater research and development, and innovation in the longer term

The impact of information technology resources on SMEs' innovation performance

This work aims to develop a research framework to examine the impact of information technology resources on the innovation performance of Saudi small-and-medium enterprises (SMEs). SMEs innovation capability influences growth and technological progress (Bruque & Moyano, 2007). However, many developing countries exhibit moderate or even low innovation performance. For instance, Saudi Arabia is ranked 54th by the Global Innovation Index (GII 2011). Innovation systems studies focus on the alignment between the interactions of innovation actors with their constantly changing environment toward better innovation performance (Etzkowitz & Leydesdorff, 2000). The dynamic capabilities of organisations have been highlighted as a crucial characteristic that helps to achieve a sustainable competitive advantage (Teece et al., 1997). The indirect impact IT resources on innovation performance represents an attractive research area (Benitez-Amado et al., 2010). Therefore, we argue that a closer look at Saudi SMEs information technology resources and their impact on the firm dynamic capabilities and innovation performance would make a significant contribution to existing knowledge. Areas such as the organisation strategies of developing countries, innovation management, dynamic capabilities, open innovation and strategic information systems are few examples of areas that might benefit from this work

Competitive Priorities and Competitive Advantage in Jordanian Manufacturing

The purpose of this research was to explore and predict the relationship between the competitive priorities (quality, cost, flexibility and delivery) and the competitive advantage of firms in the Jordanian Industrial Sector. A population of 88 Jordanian manufacturing firms, registered on the Amman Stock Exchange, was targeted using a cross-sectional survey employing a questionnaire method of data collection. The results of the data analysis indicate a significant relationship between competitive priorities and competitive advantage. The research suggests that recognising and nurturing this relationship provides the master key for a firm to survive in a turbulent environment. Therefore, operational and marketing strategies should place emphasis on competitive priorities such as quality, cost, flexibility and delivery to achieve, develop and maintain competitive advantage. This study is one of the first to examine the relationship between the competitive priorities of Jordanian manufacturing firms and their competitive advantage

Manufacturing in Scotland

Set against the backdrop of current thinking that UK manufacturing needs to move into higher value, this report, commissioned on behalf of the Scottish Manufacturing Advisory Service (SMAS) Board, set out to: Give an account of the current status of manufacturing SME’s in Scotland including current activities, aspirations, strategies and challenges facing them; Assess the progress Scotland has made towards high value manufacturing; Make recommendations as to the type of support needed to enable Scottish manufacturing SMEs invest in their long-term future. The resulting report is based on findings of a survey that delivered responses from 435 Scottish manufacturing companies and in-depth interviews with directors of 45 companies. This research was carried out during the period April to September 2008. Our research suggests that there have been significant shifts within manufacturing SMEs in Scotland. The most notable shifts include: A shift in the basis of competition. Our research suggests that the primary basis of competition for Scottish manufacturing SMEs is not price. Increasingly Scottish SMEs are adding value through quality and customer service. A shift in the nature and scope of operations. Whilst the primary business function of manufacturing companies remains production, there is evidence of increasing levels of design and service activity taking place. Companies reported they expected this trend to continue as the shift in the basis of competition away from price towards innovation and customer service gains pace. These changes suggest a move towards high value manufacturing. However there are major challenges facing Scottish SMEs if they are to compete on new value propositions. Of particular concern are: Lack of strategic vision and understanding of the capabilities and competencies needed to compete on the new value propositions. Whilst companies largely recognise the need to improve manufacturing efficiency, many have not embraced the need to develop and improve processes that deliver value to the customer (eg. Customer service processes, new product development processes etc). If customer service, innovation and quality are key differentiators and the way they add value, then companies need to ensure they have sustainable processes to deliver this value. Changes in operational activity have tended to be the result of evolution and opportunity rather than coherent operational strategy. Many companies need help in generating and enacting strategic change There is a lack of appreciation of the potential value of innovation in delivering value (and indeed the understanding of innovation in its many guises). Almost all companies interviewed reported some problems finding and retaining staff. Whilst in some cases labour shortages were due to specific skills and knowledge, there was also a general problem recruiting people with basic employability who had a desire to work in manufacturing. The poor image of manufacturing was a worry to the vast majority of interviewees. Many companies recognised the potential to exploit opportunities overseas. Some alluded to the fact that it might not be enough to market and export overseas, but that a manufacturing presence may be needed to fully exploit the opportunity. In terms of the support needed, companies stated that they would be looking increasingly for help and support in the areas of manufacturing efficiency and sales and marketing. Supply chain was also an area where companies reported they would be looking for help and support. Companies also suggested that they would like to see improvements in terms of “community”, with a number of interviewees looking for help in accessing not just help and support, but also introductions to other organisations. The research team believe that whilst not always recognised by the companies, support is also needed in the areas of strategy (and linked to this leadership) and in developing and improving processes that add value. Finally, the research suggests worryingly low levels of manufacturing entrepreneurship in Scotland, with only 3% of companies surveyed established within the past 5 years. This is worthy of further investigation. 4 Key findings and recommendations are expanded upon in Table 1. However the key recommendations can be summarised as: Manufacturing SMEs continue to require support in manufacturing efficiency, sales and marketing and supply chain. As companies move away from price as the main basis for competition and towards alternative value propositions, they also need support in developing and enacting strategy. Of particular urgency, companies need help in developing and improving the processes and capabilities that deliver value (beyond traditional manufacturing) Establishing processes that support innovation and product development will be central to the sustainability of many Scottish SMEs Further work needs to be done to investigate the apparent low levels of manufacturing start-ups Further work is needed to understand the areas where Scottish SMEs can actually compete on high volume /low complexity – often due to “localisation” factors Consideration should be given to supporting companies who wish to establish manufacturing overseas to exploit global opportunitiesA skills strategy must be created in line with the needs of manufacturing industry The poor image of manufacturing in Scotland needs to be addresse

Re-reengineering the dream: agility as competitive adaptability

Organizational adaptation and transformative change management in technology-based organizations is explored in the context of collaborative alliances. A Re-reengineering approach is outlined in which a new Competitive Adaptability Five-Influences Analysis approach under conditions of collaborative alliance, is described as an alternative to Porter’s Five-Forces Competitive Rivalry Analysis model. Whilst continuous change in technology and the associated effects of technology shock (Dedola & Neri, 2006; Christiano, Eichenbaum & Vigfusson, 2003) are not new constructs, the reality of the industrial age was and is a continuing reduction in timeline for relevance and lifetime for a specific technology and the related skills and expertise base required for its effective implementation. This, combined with increasing pressures for innovation (Tidd & Bessant, 2013) and at times severe impacts from both local and global economic environments (Hitt, Ireland & Hoskisson, 2011) raises serious challenges for contemporary management teams seeking to strategically position a company and its technology base advantageously, relative to its suppliers, competitors and customers, as well as in predictive readiness for future technological change and opportunistic adaptation. In effect, the life-cycle of a technology has become typically one of disruptive change and rapid adjustment, followed by a plateau as a particular technology or process captures and holds its position against minor challenges, eventually to be displaced by yet another alternative (Bower & Christensen, 1995)

Heterogeneity in learning processes and the evolution of dynamic managerial capabilities as a response of emergence of biosimilar market: evidence from the Indian pharmaceutical industry

This paper examines heterogeneity in the response of Indian firms to the emergence of a new segment in the pharmaceutical generics market – biosimilars. The necessary diversity of the knowledge base and regulatory requirements underlying biosmilar products have created significant technological capability and market access challenges for Indian firms. This is but the latest development which adds to an existing catalogue of challenges including the decline of the traditional generics markets, regulatory hurdles in advanced country markets and failures in managing new drug development. Using case studies of three Indian firms we show that dynamic managerial capability is a key driver of heterogeneity in learning processes involved in acquisition of technological capabilities for biosimilars and market access strategies. It further highlights the important role of pre-existing capabilities in enabling and constraining the development of new biosimilar capabilities

Design Management Capability in Entrepreneurship: A Case Study of Xiaomi

In recent years, entrepreneurship has become a popular topic and attracted many young people to start their own companies. In entrepreneurship, design was generally viewed as essential to innovation, replacing the conventional role of the engineer. Unlike traditional businesses, which generally take a longer time to become established in the more stable economic context of mass-production, current start-ups have to face fierce competition and have the tendency to expand rapidly and accommodate the dynamic business environment. Consequently, design management is considered to be crucial to business growth, since it contributes to both competitive advantages and strategic flexibility. However, start-up companies are well-known for their high failure ratio. This triggered our initial research question: what is the role of design in a start-up to support it in achieving success? Through a case study of Xiaomi, a well-known successful entrepreneurship in China, the new capabilities of entrepreneurial design management were reported. It was further classified into three key topics in line with the three stages of entrepreneurial business development. Difference with design management capabilities reported in previous studies, the new capabilities show the dynamic nature of entrepreneurial design management

Re-balancing the excellence frameworks with individualistic logic

The analysis and assessment of business excellence are often associated with the discussion on the design and justification of the excellence measures and their dimensions. This paper re-visits the critical issues in assessing business excellence, and aims to explore the conceptual development on re-balancing the performance dimensions in view of a framework. Based on the synthesising of published literatures and case studies it reveals that all the published excellence frameworks are based on the commonality logic ; and it suggests re-balancing them with the individualistic logic . This concept has then been operationalised by constructing a new excellence framework named world-class diamond model. Based on the surveyed data and by using structural equation modelling the re-balanced diamond model is tested and analysed in order to secure its theoretical validity. With the re-balanced framework, it stresses the critical importance of the individualistic logic in achieving business excellence. It also argues that the managerial implication of the individualistic logic lies in the firm-specific and situation-sensitive practices of business excellence. The original contribution of the research is a conceptually re-balanced perspective of business excellence, suggesting a shift from commonality logic towards individualistic logic