Manufacturing Firms' Processes and Practices for Creating Radical Manufacturing Technology Innovations

The study reported in this dissertation examined situations in which manufacturing firms introduce radically different and novel technologies into their core production processes. In shifting to a new and different production technology, a manufacturing firm radically innovates its core production process, which is referred to in this thesis as radical manufacturing technology innovation (RMTI). Manufacturing technologies are often complex, and manufacturing firms are unable to develop and manufacture the needed technologies and equipment themselves. Thus, to create RMTIs, they need to collaborate with equipment supplier firms. These innovation projects therefore involve concept development and implementation projects for both production process innovation by the manufacturing firm and linked equipment (product) innovation by the equipment supplier firm. Process and equipment (product) innovations are interlinked, and both need to be realised as part of the manufacturing firm’s RMTI project. The newness of a technology to manufacturing firms and the distributed knowledge among different experts from manufacturing and equipment supplier firms create knowledge gaps and pose related difficulties to the management of RMTI projects. These projects typically suffer inefficiency, rework, delays and losses, and there is a need for deeper knowledge on processes and practices for their management. This dissertation concentrates on three major gaps in the previous knowledge on the creation of RMTIs from the perspective of manufacturing firms. First, the overall RMTI creation process, covering both product and process innovations linked with RMTI, has not been sufficiently covered in empirical research. RMTIs have predominantly been investigated as technology adoption tasks from the perspective of manufacturing firms, and how they introduce the interlinked process and equipment (product) innovations remains unclear from previous research. Second, related to this, research on high-novelty RMTIs, which also involve newness to others besides the manufacturing firm, is scarce, and the creation processes for RMTIs with different levels of novelty remain unclear in the literature. Third, the emergence of RMTI ideas in manufacturing firms and managers’ practices for searching for the needed ideas in the innovation front end remain underinvestigated and unclear in the existing literature. This article-based dissertation comprises four original articles, two of which have been published in peer-reviewed scientific journals and two in peer-reviewed conference proceedings. The empirical investigation was carried out in two parts. First, a qualitative exploratory study on the RMTI creation process was conducted using empirical data on a wide breadth of RMTI examples with different levels of novelty. The study mapped different types of RMTI creation processes and the tasks involved in them from the perspective of manufacturing firms. Second, a multiplecase study was conducted, covering three nested cases of RMTI projects in each of the three case firms. The study investigated managers’ information search practices for generating RMTI ideas at the front end of innovation. This dissertation contributes knowledge on managing RMTIs from the perspective of manufacturing firms beyond new technology adoption and implementation. RMTIs are understood as involving wider tasks from the perspective of manufacturing firms, as radical innovation projects in such firms’ core production technologies. Three types of creation processes are revealed for RMTIs with different levels of novelty. The novelty levels for RMTIs are distinguished based on whether the technology is new only to the manufacturing firm or is also new to the equipment supplier firm or to the industry and the world. Technological newness for equipment supplier firms is understood as an important part of managing RMTI projects in addition to technological newness for manufacturing firms. Fourdimensional construct of technological newness for equipment suppliers as part of RMTI projects and the corresponding uncertainties introduced in manufacturing firms’ creation processes are revealed. The observed proactive search practices of top and middle managers in manufacturing firms for putting together the information required to arrive at breakthrough insights needed for creating RMTI ideas at the front end of the innovation are presented. This dissertation contributes to the practice of managing RMTIs by offering frameworks for processes and practices for their initiation and implementation covering the comprehensive tasks involved in RMTI creation from the perspective of manufacturing firms

Managers’ search practices at the front end of radical manufacturing technology innovations

Managers of manufacturing firms have important tasks in choosing novel technology solutions for the firm’s production process. The emergence of ideas for radical manufacturing technology innovations and managers’ proactive search for radical ideas and concepts for developing production processes have not been well understood. This study concentrates on managers’ search practices at the front end of radical manufacturing technology innovations. We analyzed managers’ practices in the early phase of nine radical manufacturing technology innovation projects across three firms. Radical manufacturing technology innovations require acknowledging both process innovations for the manufacturer and product innovations for the equipment supplier. The findings revealed alternative patterns regarding the use of directed and autonomous search processes, internal and external information sources, and open and closed supplier search. This study offers new knowledge on the nature of the information processing task that managers face and on the search practices managers use at the front end of radical manufacturing technology innovations. The study contributes by differentiating the managers’ search practices based on the specific innovation scope in terms of the technology, equipment, and production concept. Managers are portrayed as active agents in renewing the production processes of a firm. Propositions are offered concerning the drivers and use of managers’ search practices at the front end of radical manufacturing technology innovations.publishedVersionPeer reviewe

Johtajat valmistusteknologiainnovaatioita etsimässä

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Relocation of Nordic Manufacturing

Manufacturing industries have had an important role in the export-driven economies of the Nordic countries. Manufacturing companies from these countries have increasingly been moving production abroad in recent years. However, backshoring of previously offshored manufacturing is attracting growing attention among researchers and policy-makers. This phenomenon, and its consequences for the renewal of manufacturing, are yet little understood.The research project “Reshoring of manufacturing (ROaMING): Disruptive Technologies, Business Ecosystems and Performance Information as Key Enablers” focused on increased understanding of production relocation trends in the Nordic countries, Denmark, Finland, and Sweden. The aim was to create in-depth knowledge on the status of and potential for relocating manufacturing as a source of renewal of the manufacturing sector. The research approach consisted of quantitative and qualitative parts utilizing both available databases and new data collected through a large-scale survey and case research.The report consists of five main content chapters. First, the survey results of offshoring and backshoring trends in the Nordic countries Denmark, Finland, and Sweden are presented. Then we discuss the use of financial information in decision-making regarding manufacturing offshoring and backshoring. Thereafter the results of a study on manufacturing innovations and the adoption and implementation of new manufacturing technologies are reported. The fourth chapter presents the results of a study involving two manufacturing companies on the role of business ecosystems in manufacturing relocation decisions. Finally, the fifth chapter explores the global production investments made during the period 2005-2015 by large manufacturing firms with headquarters in Denmark, Finland, and Sweden.The results among the Nordic manufacturing firms indicate that offshoring is clearly more common than backshoring. The manufacturing relocations by Nordic firms are geographically wide-ranging. The most important regions for offshoring and of backshoring are Eastern and Western Europe, the Nordic countries, and China. Offshored production is typically cost focused, whereas production relocated to the Nordic countries is relatively complex and technology-intensive, seeking access to technology, skills and knowledge, and proximity to R&D and product development. Movement of production is expected to continue both offshore and back. The reinforcement of the Nordic countries as a strong base for high value-adding manufacturing firms can be influenced by policy measures and future research.Policy implications, as well as future research proposals are noted as the result of this study. Cost competitiveness in the Nordic countries needs to be ensured in relation to their reference group in the competition. This also exerts pressure for continuous productivity improvements through technological advances and process improvements. Access to skills, knowledge and technology are important factors for Nordic manufacturers to relocate production. Therefore product, process and supply chain innovation, as well as colocation of R&D and production, need to be promoted. Policy-makers need to pay attention to maintaining the Nordic innovation systems. Many firms seem to lack a clear strategy or analytical capabilities for manufacturing location decisions. Expertise on managing global manufacturing networks should be enhanced. Follow-up on the extent, drivers and benefits of production relocations of the Nordic manufacturing firms is needed to enhance the fact-based understanding of the longer-term trend of manufacturing relocations

Suppliers’ technological newness: Source of uncertainty in manufacturing technology innovations

Radical manufacturing technology innovations involve the introduction of a new technology in a firm’s core production process. They require significant learning and knowledge transfer between the technology supplier and the technology introducing manufacturing firm. This study explores the technological newness for equipment supplier firms and linked technology uncertainties in high-novelty manufacturing technology innovation projects which feature technological newness not only for the technology introducing manufacturing firm but also for the equipment supplier firm. The findings reveal a four-dimensional construct for equipment suppliers’ technological newness and linked technological uncertainties emerging in the manufacturing firm’s innovation process. The findings pave the way for better planning and preparation for addressing technological uncertainties and linked inefficiencies in high-novelty manufacturing technology innovation projects. Implications for research on knowledge transfer for innovation are discussed.publishedVersionNon peer reviewe

Creation processes for radical manufacturing technology innovations

Purpose: This paper empirically investigates the processes by which manufacturing firms create radical innovations in their core production process, referred to as radical manufacturing technology innovations (RMTI). The purpose of this paper is to improve the understanding of the processes and practices manufacturing firms use to create RMTI. Design/methodology/approach: Creation processes for 23 RMTI projects from diverse industry and technology contexts are explored. Data were collected via semi-structured interviews, and an inductive analysis was carried out to identify similarities and differences in RMTI types and creation processes. Findings: Three types of RMTI and three alternative RMTI creation processes are revealed and characterized. An integrated view is developed of the activities of the equipment supplier and the manufacturing firm, highlighting their different roles and interaction across the three RMTI creation process types. Research limitations/implications: The exploratory design limits the depth of the analysis per RMTI project, and the focus is on manufacturing technology innovations in one country. The results extend previous case and context-specific findings on RMTI creation processes and provide novel frameworks for cross-case comparisons. Practical implications: The manufacturing firms’ proactive role in RMTI creation is defined. A framework is proposed for using different RMTI creation processes for different types of RMTI. Originality/value: This study addresses recent calls for empirical research on understanding the ways in which process innovations unfold in manufacturing firms. The findings emphasize the role of manufacturing firms as creators of RMTI in addition to their role as innovation adopters and implementers and reveal the suitability of different RMTI creation processes for different RMTI types.publishedVersionPeer reviewe

Radical innovations in manufacturing technologies: different processes for different innovations.

Uusien markkinoiden luominen ja uudenlaisten tuotteiden tai ratkaisujen toimittaminen voi vaatia sitä, että tuotantoyrityksen on uudistettava tuotantojärjestelmäänsä. Osa tällaisista uudistuksista vaatii kokonaan uusia teknologioita – laitteita, järjestelmiä ja kokonaisia prosesseja. Koska teknologia on yritykselle uutta ja yritykset toteuttavat tällaisia radikaaleja uudistuksia harvoin, niillä ei välttämättä ole käytössään kaikkia innovaation edellyttämiä osaamisia. Tutkimme vuonna 2017 päättyneen Tekes-rahoitteisen Roaming (Reshoring of manufacturing) –projektin osana ja jatkoksi sitä, miksi tuotantoyritykset ryhtyvät radikaaleihin tuotantoteknologian innovaatioihin ja millaisia prosesseja ne käyttävät näiden innovaatioiden toteutuksessa. Selvitimme haastattelututkimuksessa 23 erilaisen radikaalin tuotantoteknologiainnovaation lähtökohtia, haasteita, toteutusta ja menestystekijöitä. Kuvaamme tässä artikkelissa tuloksina innovaatioissaan onnistuneiden yritysten erilaisia lähtökohtia tuotantoteknologiainnovaatioille, innovaatioiden erilaista uutuusarvoa sekä kolme vaihtoehtoista toteutusprosessia.proo

Relocation of Nordic Manufacturing

Manufacturing industries have had an important role in the export-driven economies of the Nordic countries. Manufacturing companies from these countries have increasingly been moving production abroad in recent years. However, backshoring of previously offshored manufacturing is attracting growing attention among researchers and policy-makers. This phenomenon, and its consequences for the renewal of manufacturing, are yet little understood. The research project “Reshoring of manufacturing (ROaMING): Disruptive Technologies, Business Ecosystems and Performance Information as Key Enablers” focused on increased understanding of production relocation trends in the Nordic countries, Denmark, Finland, and Sweden. The aim was to create in-depth knowledge on the status of and potential for relocating manufacturing as a source of renewal of the manufacturing sector. The research approach consisted of quantitative and qualitative parts utilizing both available databases and new data collected through a large-scale survey and case research. The report consists of five main content chapters. First, the survey results of offshoring and backshoring trends in the Nordic countries Denmark, Finland, and Sweden are presented. Then we discuss the use of financial information in decision-making regarding manufacturing offshoring and backshoring. Thereafter the results of a study on manufacturing innovations and the adoption and implementation of new manufacturing technologies are reported. The fourth chapter presents the results of a study involving two manufacturing companies on the role of business ecosystems in manufacturing relocation decisions. Finally, the fifth chapter explores the global production investments made during the period 2005-2015 by large manufacturing firms with headquarters in Denmark, Finland, and Sweden. The results among the Nordic manufacturing firms indicate that offshoring is clearly more common than backshoring. The manufacturing relocations by Nordic firms are geographically wide-ranging. The most important regions for offshoring and of backshoring are Eastern and Western Europe, the Nordic countries, and China. Offshored production is typically cost focused, whereas production relocated to the Nordic countries is relatively complex and technology-intensive, seeking access to technology, skills and knowledge, and proximity to R&D and product development. Movement of production is expected to continue both offshore and back. The reinforcement of the Nordic countries as a strong base for high value-adding manufacturing firms can be influenced by policy measures and future research. Policy implications, as well as future research proposals are noted as the result of this study. Cost competitiveness in the Nordic countries needs to be ensured in relation to their reference group in the competition. This also exerts pressure for continuous productivity improvements through technological advances and process improvements. Access to skills, knowledge and technology are important factors for Nordic manufacturers to relocate production. Therefore product, process and supply chain innovation, as well as colocation of R&D and production, need to be promoted. Policy-makers need to pay attention to maintaining the Nordic innovation systems. Many firms seem to lack a clear strategy or analytical capabilities for manufacturing location decisions. Expertise on managing global manufacturing networks should be enhanced. Follow-up on the extent, drivers and benefits of production relocations of the Nordic manufacturing firms is needed to enhance the fact-based understanding of the longer-term trend of manufacturing relocations.publishedVersio