Mutually Supportive or Trade-Offs: An Analysis of Competitive Priorities in the Emerging Economy of India

To refine the theories of operations strategy, we need research from all different situational contexts, including different countries—both developing and developed. There have been many studies, including some replications, done in various parts of the world to further the debate on whether competitive priorities are mutually supportive or if they present potential trade-offs, but hardly any from a rapidly growing economy, such as India. This study is a significant attempt in that direction. After a thorough review of the literature, a set of hypotheses is introduced to test whether Indian manufacturers view competitive priorities as mutually supportive or trade-offs. The data from over 150 high-ranking individuals from over 75 manufacturers in India is used to test the hypotheses by way of cluster analysis and ANOVA. The resultant taxonomy reveals patterns that uniquely represent Indian manufacturers\u27 view of the competitive priorities, namely quality, flexibility, delivery and price. The study findings have significant managerial implications, both for India and other developing as well as developed economies. The taxonomy will serve to gauge India\u27s manufacturers\u27 role in the world. From a researcher\u27s perspective, this study makes a significant contribution to theory development, furthers our understanding of the strategic role of operations, moves forward the ongoing debate on the topic of trade-offs or complementarity, and paves the way for future studies in this topical area

Competitive Priorities as Trade-Offs or Mutually Supportive: Can We Call the Question Yet?

As the field of operations strategy matures, we need to refine the theories and abandon weak models through cumulative research. This study contributes to the debate on whether competitive priorities present potential trade-offs or are mutually supportive

Managing for Flexibility: A Manufacturing Perspective

This paper investigates managerial practices that are conducive to the management of flexibility. Using data from manufacturing plants in the United States, this paper identifies managerial practices that manufacturing managers strongly demonstrate in plants that place a high emphasis on flexibility. The results indicate that managers who pursue flexibility, emphatically engage in team building, employee empowerment, and other relationship oriented practices that generate enthusiasm among employees. These practices seemingly motivate workers to deal with the uncertainty and changes, in the form of product mix, customer delivery schedule, capacity adjustments, etc., that characterize manufacturing flexibility. Furthermore, workers are entrusted with the traditional responsibilities of manufacturing managers, such as monitoring, problem solving, etc

Competitive Priorities and Managerial Performance: A Taxonomy of Small Manufacturers

Much of the research in manufacturing strategy has focused on specific relationships between a few constructs, with relatively little emphasis on typologies and taxonomies (Bozarth and McDermott, 1998). Using data from 196 respondents in 98 manufacturing units, this study develops a taxonomy of small manufacturers based on their emphasis on several competitive priorities. The annual sales for sixty-four percent of the participating units in this study are below US $50 million, which is on the lower side as compared to other studies in this area (cf., Miller & Roth, 1994). The study findings indicate that different groups of manufacturers – Do All, Speedy Conformers, Efficient Conformers, and Starters – emphasize different sets of competitive priorities, even within the same industry. Further, the Do All types, who emphasize all four competitive priorities, seem to perform better on customer satisfaction than their counterparts in the Starters group. The above findings lend support to the sandcone model but contradict the traditional trade-off model

Antecedents to Buyer-Supplier Coordination in the Pharmaceutical Supply Chain

Purpose The purpose of this study is to understand the antecedents that influence supply chain coordination in the pharmaceutical supply chain using the transaction cost analysis framework. Design/methodology/approach Data from 156 retail pharmacies on their relationship with the pharmaceutical wholesalers are used to test the hypotheses. Findings The findings of this paper show the importance of antecedents that are based on the transactional cost theory, such as asset specificity and environmental uncertainty. These antecedents impact the supply chain process coordination at different levels – transactional, operational and strategic. Research limitations/implications Future research may investigate additional antecedents using other theoretical lenses. Practical implications Pharmaceutical wholesalers are dependent on pharmaceutical manufacturers for the supply of products and face intense competition that results in lower profit margins. Given that the pharmaceutical industry is strictly regulated, the wholesaler facilitates regulatory compliance of the manufacturers in the distribution process by coordinating with them. But the wholesalers do also face a constant threat from the manufacturers, who could potentially bypass the wholesalers (disintermediation) and go directly to the pharmacies. To counterbalance the dependence, the wholesalers strive to achieve loyalty with the retail pharmacies. Through supply chain coordination, the wholesalers achieve efficiency in procurement for the pharmacies, thus reducing cost and improving their competitive advantage. Social implications Supply chain coordination in the pharmaceutical supply chain improves the safety and security of the pharmaceutical distribution system. Originality/value This paper contributes to the supply chain coordination stream of literature. To the best of the authors’ knowledge, this is the first study to develop the three levels of process coordination in the pharmaceutical supply chain context. This paper shows how process coordination can be achieved between the dyad without vertical integration

Aligning Performance Metrics with Business Strategy

Purpose This study examines whether different strategy archetypes deploy specific performance metrics to support their strategic goals and priorities. If so, does alignment of strategy and metrics positively impact organisational performance? Design/methodology/approach The conceptual framework and hypotheses are couched in Contingency Theory. The role of business strategy as a moderating variable is tested using MANOVA, followed by post hoc pairwise comparisons. The results are based on cross-sectional survey data from 372 manufacturing and service organisations in Italy. Findings The overall contingency effect of business strategy in selecting and deploying performance metrics and their effect on organisational performance is supported. However, the group-wise post hoc analyses show support only for Prospectors but not for Defenders and Analysers. Research limitations/implications This research lends further support in favour of the Contingency Theory from a new geographic context (Italy) that there are no universally best performance metrics that drive organisational performance. However, more research is needed to understand why the theory only holds for certain strategic archetypes and not across all archetypes. Practical implications Managers can direct resources and effort towards designing and deploying the “right” type of performance metrics suitable for their strategic orientation and thus optimise organisational performance. Originality/value This is a rare study that tests the moderating role of business strategy using all four strategic archetypes of the Miles and Snow typology. It deploys both financial and non-financial measures and uses a very large sample of both manufacturing and service organisations from a relatively unexplored region of the world. The study provides additional evidence in favour of the Contingency Theory whilst advocating for more research to refine our understanding of why the contingency perspective is not so important for firms that are not the first-in

The Internet and the Strategies of Firms: Does Technological Orientation of the Firm Make a Difference?

Designed to track how growth of the Internet and the burst of the dot.com bubble might affect strategies of the firms, this study found that most respondents want to become more entrepreneurial and risk-taking when exploiting the opportunities afforded by the Internet. Based on the findings of the study, we note that firms that are more entrepreneurial will assimilate the Internet as a technology. The Internet is an enabling technology that provides a set of tools that could be used in any industry as part of a firm’s strategy, and the brick and mortar firms must integrate the Internet so as to enhance the distinctiveness of the strategy of the firm

Quality and Work Force Practices: The Managerial Performance Implication

This paper examines the managerial performance impact of work force management practices appropriate for manufacturing environments when quality is highly emphasized. The hypotheses are tested using data from 483 individuals in 99 manufacturing plants in the United States. The results indicate that when the emphasis is high on quality, certain work force management practices seem to play an important role in managerial performance in manufacturing settings

Competitive Priorities and Strategic Consensus in Emerging Economies: Evidence from India

Purpose – The purpose of this paper is to understand the competitive priorities of manufacturers in India, and examine the level of agreement or strategic consensus between senior executives and manufacturing managers on manufacturing competitive priorities in light of the prevalent culture. Design/methodology/approach – Survey data collected from 156 respondents from 78 manufacturing units based on a national sample in India are used to test the hypotheses using the paired samples t‐tests and multivariate analysis of variance. Findings – A relatively high emphasis by both levels of managers on quality, compared to the other three competitive priorities, is noteworthy and consistent with the global trends. The emphasis on delivery is a close second. Differences in competitive priorities exist across managerial levels in India despite the high power distance and low individualism. Research limitations/implications – The effect of ownership as private or public company was examined and no significant differences found, but data could not be collected on the ownership structure such as wholly owned domestic firms, foreign subsidiaries, or joint ventures. and whether a firm is a supplier to a multinational company. It may also be noted that a majority of the manufacturing companies in this paper came from three industries – chemicals, fabricated metals, and electronic and electrical equipment – and, hence, the findings of the paper might have been unduly influenced by the prevalent practices in these industries. Practical implications – The paper informs global managers and firms seeking to outsource to, or invest in, India that the Indian managers place significantly high emphasis on quality and delivery, but not as much on product variety or ability to make frequent changes to product design and production volume. The managers in India need to take note of prevailing differences in managerial priorities and efforts need to be made such that the priorities are aligned and manufacturing strategy may be unified and coordinated. Originality/value – In the Indian context, this is the first study that deployed multiple respondents to understand the manufacturing competitive priorities, and also the first to examine strategic consensus in operations strategy

Selecting IT Applications in Manufacturing: A KBS Approach

The use of the right type of Information Technology (IT) applications or manufacturing systems is expected to usher in a competitive advantage. Selection of the right type of IT application is, however, a challenging task. When a company, with a given dominant process structure, emphasizes two or more competitive priorities, such as quality, product flexibility, etc., an unaided manager faces a complex decision problem in choosing from alternative IT applications available in the areas of product design through distribution. In this paper, we present a Knowledge Based System (KBS) that would assist managers with the identification of IT applications that are consistent with both the competitive priorities and the process structure. Validation of the system illustrates that its performance is consistent with the human experts, and it has the potential to facilitate effective and swift decision-making in the selection of appropriate IT applications that best match an organization\u27s manufacturing strategy