Technology, Customization, and Reliability

This research examines the relative importance that customers place on product reliability, or things-gone-wrong, and customization, or things-gone-right, across a range of industrial settings. We integrate an evolutionary theory of technology with a dynamic theory of competition to predict that: (1) when technological intensity is relatively low or high, customers place greater value on customization and (2) when technological intensity is more intermediate, product reliability and customization are more equally important. The predictions are tested and supported using data from the American Customer Satisfaction Index (ACSI) survey

Strategic Predictors of Successful Enterprise Systems Deployment

Purpose The delivered wisdom to date has enterprise system purchase and implementation as one of the most hazardous projects any organization can undertake. The aim was to reduce this risk by both theoretically and empirically finding those key predictors of a successful enterprise system deployment. Design/methodology/approach A representative sample of 60 firms drawn from the Fortune 1000 that had recently (1999-2000) adopted enterprise resource planning (ERP) systems was used to test a model of adoption performance with significant results. Findings Leadership (social learning theory), business process re-engineering (change the company not the technology) and acquisition strategy (buy, do not make) were found to be significant predictors of adoption performance (final model R 2=43 percent, F=5.5, pp Originality/value The “four factor” model we validate is a robust predictor of ERP adoption success and can be used by any organization to audit plans and progress for this undertaking

Strategic Predictors of Successful Enterprise Systems Deployment

Purpose The delivered wisdom to date has enterprise system purchase and implementation as one of the most hazardous projects any organization can undertake. The aim was to reduce this risk by both theoretically and empirically finding those key predictors of a successful enterprise system deployment. Design/methodology/approach A representative sample of 60 firms drawn from the Fortune 1000 that had recently (1999-2000) adopted enterprise resource planning (ERP) systems was used to test a model of adoption performance with significant results. Findings Leadership (social learning theory), business process re-engineering (change the company not the technology) and acquisition strategy (buy, do not make) were found to be significant predictors of adoption performance (final model R 2=43 percent, F=5.5, pp Originality/value The “four factor” model we validate is a robust predictor of ERP adoption success and can be used by any organization to audit plans and progress for this undertaking

Two-tiered measurement systems in modernizing plants

In this study we predicted and found evidence to support two general themes about new production systems measurement. First, there are two tiers of measures that are becoming popular to gauge performance. These two tiers are relatively independent- system-level measures like uptime, and business-level outcomes like return on investment. Second, when measures from these two categories are significantly correlated, they are likely to be for the time or flexibility measures at the system level. The rationale for this thesis is that modernization programs implement the leading edge of manufacturing strategies, and time or flexibility are replacing quality as priorities in leading-edge domestic manufacturing.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/45528/1/10696_2004_Article_BF00170211.pd

Adoption complexity and economies of scope for new process technology in manufacturing

In a study of 39 domestic, durable goods plants, justifications for purchase of new process technology varied from the simple, single-goal approach to the complex, multiple-objective strategy. This variety contributes to a larger construct of adoption complexity, which was found to be a function of flexible manufacturing systems (FMS) (vs. cellular) purchase choice and plant size in a significant path model. Adoption complexity, in turn, significantly influences intrafirm personnel flows for implementation (e.g., mobility and job rotation). Flexible outcomes are not automatic with FMS purchase, however. Part family variety was significantly higher in larger plants and part variety was significantly promoted by personnel flows. Suggestions for further research and policy implications are discussed.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/31648/1/0000582.pd

Cross-national comparisons of product development in manufacturing

In this study we compare product development strategies and practices of five companies in the durable goods industries: one each in the United States (equipment), Sweden aerospace), Germany (electric motors), Hungary (transportation equipment), and Japan (business machines, cameras/video). In particular, we focus on the concept development phase of new product development and the attend to the aspects of the design process that may be influenced by culture. To the extent that the five cases are representative of their home countries, there appears to be ample variance across cultures to justify further, more extensive research in this arena. A model is presented which differentiates the amount of cultural influence by stage of the product development process in high technology versus low technology industries.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/30535/1/0000167.pd

Product development benchmarking versus customer focus in applications of quality function deployment

The study explores the tradeoff between efforts to benchmark on product-development practices and be customer focused in the implementation of a quality-improvement method. The results of a survey of thirty-three firms' experience with quality function deployment (QFD) reveal that benchmarking on how competitors, peers, or role models develop products facilitates process improvement but hinders customer focus. Smaller firms are also shown to gain more customer focus and process-improvement benefits from QFD than larger firms.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/47150/1/11002_2004_Article_BF00994101.pd

Openness in product and process innovation

Electronic version of an article published as International Journal of Innovation Management, Vol. 16, Iss. 4, 2012, art. 1250020, pp. 1-24. DOI: 10.1142/S1363919612003812 © Imperial College Press. http://www.worldscientific.com/doi/abs/10.1142/S1363919612003812.Open innovation has generally been explored in terms of improved innovation performance vis-à-vis product/service innovation performance. However, process innovation is often ignored in the open innovation literature. In this study, we assess the impact of openness on innovation in products/services, and also on process innovation, drawing on a large-scale sample of Australian firms. In essence, we find that open innovation models are useful for firms seeking to innovate in processes as well as products and services. However, we find that openness to external information sources may, after a time, lead to decreasing marginal returns as measured by innovation performance. We also observe that, within our sample, the proposed complementarities between internal and external knowledge are generally only evident as precursors to the introduction of new products and services, and may not be as beneficial in stimulating process innovations. It is also shown by our study that investment in absorptive capacity has a declining marginal effect on the innovation performance of new processes, but not on the introduction of new products and services.Fang Huang and John Ric

The open innovation research landscape: established perspectives and emerging themes across different levels of analysis

This paper provides an overview of the main perspectives and themes emerging in research on open innovation (OI). The paper is the result of a collaborative process among several OI scholars – having a common basis in the recurrent Professional Development Workshop on ‘Researching Open Innovation’ at the Annual Meeting of the Academy of Management. In this paper, we present opportunities for future research on OI, organised at different levels of analysis. We discuss some of the contingencies at these different levels, and argue that future research needs to study OI – originally an organisational-level phenomenon – across multiple levels of analysis. While our integrative framework allows comparing, contrasting and integrating various perspectives at different levels of analysis, further theorising will be needed to advance OI research. On this basis, we propose some new research categories as well as questions for future research – particularly those that span across research domains that have so far developed in isolation

Customer Interaction and Innovation in Hybrid Offerings:Investigating Moderation and Mediation Effects for Goods and Services Innovation

Hybrid offerings are bundles of goods and services offerings provided by the same firm. Bundling value offerings affects how firms innovate, interact with customers, and customize their goods and services. However, it remains unclear how customer interaction might drive the innovation performance of various bundled components. Therefore, this study investigates the effects of customer interactions and service customization on both goods and services innovations in a hybrid offering context, using a unique data set of 146 information technology and manufacturing firms. Customer interaction appears beneficial to both goods and services innovation in a hybrid offerings context, but service customization has different direct effects on goods versus services innovation. As a potential mediator, customer knowledge mobilization resources exert different effects on the goods and services elements of hybrid offerings. Furthermore, for high-interaction customers, medium levels of technical modularity lead to most favorable innovation outcomes for services innovation. The results thus suggest that providers of hybrid offerings should foster customer interactions, to drive the innovation performance of the good and service components, while still making sure to implement service customization strategies. These findings have notable implications for service innovation research