Commodities and Linkages: Meeting the Policy Challenge

The results of detailed empirical enquiry into the nature and determinants of the breadth and depth of linkages in and out of the commodities sector in eight SSA countries (Angola, Botswana, Gabon, Ghana, Nigeria, South Africa Tanzania, and Zambia) and six sectors (copper, diamonds, gold, oil and gas, mining services and timber) has shown extensive scope for industrial development (MMCP DP 13, 2011). A primary conclusion of this research was that policy in both the private and public realm was a prime factor holding back the development of linkages. Addressing this problem requires the closing of three sets of misalignments between policy and practice – within the corporate sector, within the public sector, and between the public sector and other stakeholders involved in linkage development. In addition, specific policies need to be developed, monitored and implemented in relation to the three contextual drivers of linkages from the commodity sector – skills and capabilities, infrastructure and policies towards ownership

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

Operational Capabilities: The Secret Ingredient

We develop a theoretical definition of operational capabilities, based on the strategic management and operations management literature, and differentiate this construct from the related constructs of resources and operational practices, drawing upon the resourcebased view of the firm as our foundation. We illustrate the key features of operational capabilities using the illustration of a restaurant kitchen. Because the traits of operational capabilities are distinct, they create a barrier to imitation, making them a potential source of competitive advantage. However, operational capabilities are particularly challenging to measure, because they emerge gradually and are tacit, embedded, and manifested differently across firms. In solving this measurement conundrum, we draw upon similar situations experienced by Schein (2004) and Eisenhardt and Martin (2000) in operationalizing organizational culture and dynamic capabilities. A taxonomy of six emergent operational capabilities is developed: operational improvement, operational innovation, operational customization, operational cooperation, operational responsiveness, and operational reconfiguration. A set of measurement scales is developed, in order to measure each of the operational capabilities, and validated using two different datasets. This allows replication of the psychometric properties of the multi-item scales and helps to ensure the validity of the resulting measures

Global Production Networks and the Changing Geography of Innovation Systems: Implications for Developing Countries

The paper addresses disruptive changes that globalization imposes on the geography of innovation systems, and identifies potential benefits that developing countries could reap from international linkages. The analysis is centered on three propositions. First, developing countries nee to blend diverse international and domestic sources of knowledge to compensate for initially weak national production and innovation systems. Second, a greater variety of international knowledge linkages are possible, as globalization reduces the spatial stickiness of innovation: the spread of global production networks (GPN) combines concentrated dispersion with systemic integration, creating new opportunities for international diffusion. We argue that GPN provide firms and industrial districts in developing countries with new opportunities for reverse knowledge outsourcing. We explore resultant challenges that define the need for public policy response, define the new agenda for industrial upgrading, and discuss what types of policies and support institutions may help to reap the benefits from network participation.

Supply chain management in industrial production. A retrospective view

The article presents a retrospective review on key-issues about how the management discipline evolved up to the current view about supply-chain management (SCM) in industrial production. Specifically, the article resumes: a) the reasons that led to the transition from the traditional procurement policies to the SCM approach, b) the variables involved in the process of defining SCM relations and c) the key managerial principles underlying SCM policies and strategies. In the manufacturing industry the problem of organizing and managing firm’s relationships with supplier has recently become of an unprecedented complexity. The evolution of production systems started around the ‘80s, with the shift from the “flexible” paradigm to the “lean” one, has increased dramatically the intricacy of product and process architecture.. At the same time, the opportunities brought by the technological hybridization of products (that is: opportunities deriving from incorporating complementary technologies within products so to enhance its features and performance) gained a critical role as a competitive advantage. In our view supply chain management, as well as others managerial areas, has undergone a profound change; indeed, in the last 30 years the evolution of the industrial competitive environment has deeply modified the reference framework of supply-chain relationships even in common procurement and/or routine contracts. In the attempt to give an adequate response to changes in the competitive environment, supply policies evolve to become articulate relational strategies based on the strategic assessments of the role and the relevance of the various suppliers. The traditional approach to procurement management is combined with a perspective of value creation, a perspective that goes beyond the traditional “make-or-buy” criteria, since it introduces principles for the assessment of the strategic capability of the suppliers to create value for customer rather than to be able to fulfill its task for the firm. In such a view, firms operating in the same value-chain coordinate their strategies with a view to increase the overall value rather than compete for the allocation of the existing one. Firms’ network of suppliers and the relational capabilities assume a critical role in order to coordinate the value creation processes within the chain.Supply chain management, industrial management

Effect of Logistic Information Integration Capability on Performance of Manufacturing Firms: The Moderating Role of Supply Chain Linkages

Several studies content that firms may improve their performance by integrating their logistic capabilities. But such relationships may be affected by other externalities. Therefore, this study determined the role of supply chain linkages as a moderator on the relationship between logistic information integration capability and firm performance of manufacturing firms. The study adopted explanatory research design of cross-sectional nature. The target population comprised of 750 manufacturing firms registered under Kenya Association of Manufacturers. Sample size of 442 firms was selected using stratified and simple random sampling approaches. The findings of the study demonstrated that logistic information integration capability positively and significantly affects firm performance, subject to moderation effect of supply chain linkages. The implication of the study emphasizes the need for firm managers to understand and find ways to effectively manage the interactions between logistic information integration capability and supply chain linkages in order to improve performance and meet the customer requirements satisfactorily. Therefore, this study provides empirical evidence in manufacturing firms that supply chain moderates the relationship between logistic information integration capability and firm performance

Business networks SMEs and inter-firm collaboration: a review of the research literature with implications for policy

This literature review, which was commissioned by the UK's Small Business Service is concerned with business networks, and their importance for the small business community. Business networks are sometimes defined as comprising only inter-firm relationships (e.g. those that exist between component supplier and a manufacturer). However, it soon becomes apparent that a broader perspective is required, if research findings are to contribute meaningful insights for policy and practice. We have therefore incorporated research evidence on personal networks, notably those associated with entrepreneurship, and on links between firms and supporting institutions, such as trade associations, government agencies and universities