Showing papers in "IEEE Transactions on Engineering Management in 2007"

Green Manufacturing: An Evaluation of Environmentally Sustainable Manufacturing Practices and Their Impact on Competitive Outcomes

Abstract: Increasingly, stakeholders are asking or requiring organizations to be more environmentally responsible with respect to their products and processes; reasons include regulatory requirements, product stewardship, public image, and potential competitive advantages. This paper presents an exploratory study of the relationships between specific environmentally sustainable manufacturing practices, and specific competitive outcomes in an environmentally important but under-researched industry, the U.S. commercial carpet industry. In general, empirical research on the impact of environmental practices on organizational outcomes is inconclusive, partly due to limitations of earlier studies. This paper addresses some of these limitations, and surveys the entire U.S. commercial carpet industry; respondents represent 84 of the market. Findings suggest that environmentally sustainable manufacturing practices may be positively associated with competitive outcomes. In particular, different types of environmentally sustainable manufacturing practices (e.g., pollution prevention, product stewardship) are associated with different competitive outcomes (e.g., manufacturing cost, product quality). These specific findings can be helpful to engineering and operations managers as they respond to environmental and competitive demands.

Toward a Product System Modularity Construct: Literature Review and Reconceptualization

Abstract: Product modularity has been discussed in engineering and management literature for over forty years. During this time span, definitions and views on the meaning of product modularity proliferated to the extent that it is difficult to understand the essential traits of the concept. While definitional ambiguity is often a byproduct of academic debate, it hinders the advancement of scientific knowledge as well. This paper aims to move a step forward toward a more precise definition of product modularity, by articulating a product system modularity construct in the domain of tangible, assembled artifacts. More precisely, the paper constitutively defines product modularity in terms of component separability and component combinability. An indirect operational definition for product modularity is then proposed by operationalizing component separability and component combinability. The proposed definition is finally related to other definitional perspectives synthesized by a literature review: component commonality, function binding, interface standardization, and loose coupling. In this way, the nomological network of the product modularity construct is laid out. Construct validation activities are left to further research

Transfer From Offline Trust to Key Online Perceptions: An Empirical Study

Abstract: Research has provided little evidence that trust in an offline bank can encourage adoption of the bank's online business. Yet, more and more brick-and-mortar banks and other businesses are investing in online Web sites that supposedly ldquoleveragerdquo positive consumer impressions of their offline business. The main purpose of this study is to test empirically whether or not trust in an offline bank transfers (i.e., influences) perceptions about that company's online bank. In order to do so, we analyze how trust in an offline bank influences four perceptions about its online banking counterpart (flow, structural assurance, perceived Web site satisfaction, and perceived extent of future use). The study tests the hypothesized influence of offline trust using a sample of 199 South Korean consumers responding about offline and online banking. Results show that offline trust influences all four online perceptions, just as proposed. These effects were especially prominent among respondents new to online banking. Thus, offline-to-online transfer should be considered when designing strategies for online channels. This study fills a key research gap by examining transfer of cognitive beliefs from an offline to an online setting.

Modularity as a Strategy for Supply Chain Coordination: The Case of U.S. Auto

Abstract: Companies across industries have admired the success of Dell Computersin using modularity as part of a mass customization strategy to achieve build-to-order and a streamlined supply chain. Many companies are attempting to emulate this successful model, including the American automotive industry. This paper focuses on how the auto industry has been attempting to move to modularity, in part, motivated by a desire to build cars to order. This movement has led to major changes in supply chain practices based partly on imitation of successful keiretsu models in Japan and a move toward modules. This study finds significant impact of modularity on outsourcing, product development, and supply chain coordination based on interviews conducted with automakers and suppliers from 2000-2003. Based on our interviews, we observe that modularity has accompanied a major reorganization of the automotive supplier industry. We identify two major issues that appear to block U.S. automakers from gaining most of the advantages possible through modularity. First, most modularity activities appear to be primarily strategically cost reduction driven, leaving the potential of modularity for mass customization largely untapped. Second, the shift in industry reorganization has not been accompanied by changes in the supply chain infrastructure to encourage long-term partnerships. We contrast this to the more gradual approach used by Toyota as it incorporates modularity on a selective basis and moves to a build-to-order model

Integration of Kano's Model Into QFD for Multiple Product Design

Abstract: Simultaneous multiple product design is essential to meet customer expectations faster and with a focus on shortening life cycles, and new methodologies are needed to address the complexities related to it. quality function deployment (QFD) can help gather customer needs and link them to product design. However, understanding customer needs accurately is a challenge for traditional QFD analysis, and for this reason, Kano's model of customer satisfaction is associated with QFD in the literature. However, incorporating the results of Kano's model into QFD presents another challenge. The objective of this research is to provide a step-by-step methodology that fine-tunes the QFD method by combining Kano's model and QFD in a robust manner, from the perspective of simultaneous multiple product design. This research also includes an application of this proposed methodology on cockpit weather information system (CWIS) design, a part of NASA's Aviation Weather Information (AWIN) project, to demonstrate its usefulness

Development of New Technology Forecasting Algorithm: Hybrid Approach for Morphology Analysis and Conjoint Analysis of Patent Information

Abstract: Despite being a strong stimulus for the invention of new alternatives, morphology analysis (MA) suffers the limitations of being a nonquantitative, vague, and static methodology. As a consequence, the MA outcomes typically do not provide practical technology opportunities. This paper, therefore, proposes a new hybrid approach that enhances the performance of MA by combining it with conjoint analysis (CA) and citation analysis of patent information. First, keywords are extracted from patent documents using text mining, and the morphology of existing patents is identified by these keywords. Alternatives for new technology development from among the emerging technologies are presented by combining the valuable levels of each attribute in a morphology matrix predefined by domain experts. Then, configurations of new technology are suggested in order of priority using CA, and the technological feasibility of each new configuration is subsequently investigated. The technological competitiveness of a company can be analyzed by a newly suggested index, ldquotechnology share,rdquo which is analogous to the concept of market share in traditional CA. The proposed MA-CA hybrid process is illustrated with a case example of patent information from the thin film transistor-liquid crystal display (TFT-LCD) patent database.

Systems Development Process Improvement: A Knowledge Integration Perspective

Abstract: Although organizations have applied a variety of practices and tools to address information systems development (ISD) performance problems, most of these approaches have focused on controlling and improving predictability of the development process. There is growing recognition that ISD is a knowledge-intensive process that requires the integration of specialized stakeholder knowledge. We develop the perspective that integration of this specialized knowledge across knowledge boundaries in the ISD process drives ISD performance. We theorize that formal and informal organizational integrative practices influence ISD performance, because they facilitate the development of boundary objects that effectively span knowledge boundaries. Results from a field study of 110 firms provide considerable support for the proposed model. This paper makes three novel contributions to the technology management literature. First, it demonstrates that knowledge integration across knowledge boundaries through boundary objects improves ISD performance. Second, it shows how formal and informal organizational integrative practices enhance the integration of specialized knowledge within and across organizational subunits. Third, it shows that the positive influence of formal and informal organizational integrative practices on ISD performance is partially mediated by knowledge integration. For engineering and technology managers, the results highlight the centrality of knowledge integration for the management of technology development. Collectively, these findings offer a novel knowledge integration-based perspective that complements prior research on systems development and new product development

Towards Theory Building in Agile Manufacturing Strategy—A Taxonomical Approach

Abstract: Agility has been widely accepted in manufacturing industry as a new competitive concept. However, how to develop a manufacturing strategy based around agility is not fully understood. This paper proposes a framework for the implementation of agility as a manufacturing strategy and describes the development and analysis of a numerical taxonomy of agility strategies using the framework. The taxonomy was developed with cluster analysis based on the relative importance attached to seven agility capabilities by a number of U.K. manufacturing companies. Three distinct clusters of strategy groups were observed across the industry studied: Quick, Responsive and Proactive Players. Quick Players are oriented towards a strong customer focus and quickness. They do not emphasize flexibility and responsiveness to changes and they give low priority to proactiveness and partnership. Responsive Players are preoccupied with flexibility and responsiveness to changes. They do not emphasize proactiveness and partnerships and they attach low importance to quickness. Proactive Players are characterized by high priorities on proactiveness and customer focus, high values attached to all capabilities, and high importance given to partnerships. The underlying dimensions of agile capabilities along which the three strategy groups differ were investigated based on factor analysis and canonical discriminant analysis. Changes/uncertainties in the business environment experienced by members of different strategic groups were compared, and "manufacturing strategy choices," in terms of manufacturing practices for achieving agility, employed by members of different strategic groups were studied. Business characteristics and typical cases for each strategy group were investigated

Antecedents and Outcomes of E-Procurement Adoption: An Integrative Model

Abstract: Organizations increasingly emphasize the use of information technology in the procurement process. An integrative model of e-procurement adoption that captures its antecedents, two types of e-procurement use, and their respective effects on relationship development and perceived efficiency gains are proposed and empirically tested using the data collected from senior managers in four technology-intensive industries. Our findings indicate that the use of coordination e-procurement applications has both direct and indirect effects on perceived efficiency gains, while transactional application use can directly lead to efficiency gains. In addition, the use of e-procurement applications is strongly influenced by organizational learning ability and normative pressures. The findings provide a new perspective for managers in their future implementation of e-procurement applications.

Management of Product Architecture Modularity for Mass Customization: Modeling and Theoretical Considerations

Abstract: This paper examines the management of product architecture modularity for mass customization. Product architecture modularity is concerned with system decomposition, the selection of components and how they are linked with each other without compromising system integrity. The goal of mass customization is to produce customized goods at low cost. It has enabled many companies to penetrate new markets and capture customers whose personal needs were not met by standard products and services. Mass customization is enabled through modular product architectures, from which a wide variety of products can be configured and assembled. In order to understand the implications of product architecture modularity for mass customization, the "modularization function" is explored by applying and simulating it to a hypothetical system. Based on this exercise and sources from the literature, a new model is introduced. Furthermore, theoretical and engineering management implications are also discussed

Information Technology, Organizational Structure, and New Product Development---The Mediating Effect of Cross-Functional Team Interaction

Abstract: The main purpose of this study is to examine the relationships among information technology, organizational structure, cross-functional team interaction, and the performance of new product development (NPD). Regression analysis was used to test the hypotheses in a sample of 102 NPD cases. The findings suggest that the degree of investment and training on information technology is positively related to cross-functional team interaction; that when the organizational structure is more decentralized and less formalized, cross-functional team interaction is more favorable; and that cross-functional team interaction is positively related the performance of NPD. This study contributes to the theoretical development of a conceptual model in examining the mediating role of cross-functional team interaction between contextual variables and the outcome of NPD. The empirical evidences support the process-oriented view, and indicate that information technology and organizational structure can deliver a better performance of NPD but do so primarily through improving cross-functional team interaction. This study provides the theory building, explanatory variance, missing in the literature that did not look at the black box of relationships between information technology, organizational structure, and outcome of NPD. Managerial implications and future research directions are discussed.

Process Platform Planning for Variety Coordination From Design to Production in Mass Customization Manufacturing

Abstract: The key challenge of implementing mass customization manufacturing lies in the variety dilemma exhibited by frequent design changes and recurrent process variations. A holistic view of variety handling gives rise to the importance of variety coordination from design to production. This paper proposes a concept of process platform for coordinating product and process variety. Fundamental issues of process platforms are studied regarding generic product and process structures, generic planning, and generic variety representation. Variety handlers and associated states are introduced to model the meta-structure inherent in variety coordination. A set of modeling formalisms are developed to provide a powerful syntactic model to support rigorous analysis and manipulation of process platforms, while facilitating the application of semantics to support process platform enactment and detailed observations from a number of perspectives involving customers, design and production. Also reported is a case study of mass customization manufacturing of vibration motors for mobile phone products. The managerial implications of process platform planning are further discussed

Exploiting the Order Book for Mass Customized Manufacturing Control Systems With Capacity Limitations

Abstract: Customer specific requirements is one of the key drivers in a supply chain strategy based on mass customization At the same time there are intense pressure on price and short delivery lead times providing a complex environment for managing the supply chain The complexity can be reduced by introducing the concept of a customer order decoupling point (CODP) The CODP separates the supply chain into two key processes that can be categorized as make-to-order (MTO) and make-to-stock (MTS) and constitutes the two key building blocks of a system based on the mass customization concept The dynamic properties of the MTS environment have been extensively researched using the automatic pipeline-, inventory-, and order-based production control system (APIOBPCS) archetype In contrast to MTS systems, the customer facing MTO process, which is usually exposed to a more volatile demand stream suitable for an agile strategy, is less well investigated Agility does, however, frequently not mean that infinite capacity is available but that there is some surplus capacity available and that the capacity can be adapted to the customer requirements in certain time frames When the adaptation is not instant but requires some time to take effect the delay creates a dynamic backlog represented by the order book which affects the delivery lead time Since controlling lead times is a key factor in providing reliable delivery promises an order book control logic is introduced It is also shown that the new MTO model of the customer facing part of a mass customization system is an extension to the well established APIOBPCS framework

On the Evolutionary Dynamics of Supply Network Topologies

Abstract: Supply chains, or supply networks (SNs), exist in a multitude of different topologies, yet little is known concerning how such topologies grow, evolve, and adapt over time. To study this complex phenomenon, we begin by identifying some primary topological structures that SNs may form. Then, to investigate the evolution of such structures, a theory-based framework is developed that combines aspects of complex adaptive systems theory, industrial growth theory, network theory, market structure, and game theory. This framework specifies categories of rules that may evoke different behaviors in the two fundamental components of any adaptive SN, i.e., the environment and the Arms in that environment. The framework is implemented as a multiparadigm simulation utilizing software agents and it joins discrete-time with discrete-event simulation formalisms. This methodology allows the spontaneous generation of network structures so that it is possible to examine the potential factors behind the evolution of different SN topologies. Using data and parameters extracted from 80 years of the U.S. automobile industry, we have been able to "grow" a wide range of SN topologies and preliminary results show that certain environmental and firm-level factors may impact the eventual evolution of such structures.

Product Development Cost Estimation in Mass Customization

Abstract: The ultimate goal of mass customization is to achieve economies of both scope and scale. This goal implies a conflict between customization and economy of scale (or mass production) in the traditional manufacturing paradigm. However, recent developments in computer and Internet communication technologies, concurrent engineering, and modular design methodology provide concepts, methods and technology infrastructure for realizing mass customization. One of the findings from numerous research efforts on mass customization is the use of e-commerce technologies to manage a product development chain that links customers, suppliers and manufacturers together to approach concurrently customized products in a short time and at the low cost level of mass production, i.e., mass customization. To ensure the success of mass customization in a product development chain, a rapid, automatic yet accurate cost estimate and control system is needed. This paper presents a cost index structure, which is a novel data structure, together with two novel cost estimate methods, viz. the generative cost estimate method and the variant cost estimate method, for the development of a semi or fully automatic computer-aided cost estimate and control system in mass customization. Finally, an industrial case is reported in the paper to illustrate the principles and feasibility of the proposed data structure, methods and system framework

Antecedents and Consequences of Information Systems Planning Integration

Abstract: Successful utilization of the firm's information technology (IT) investments continues to be a difficult but important task for senior business and information systems managers. This paper focuses on one potentially important determinant of IT investment outcomes-integration of business and IT planning. Integration is examined using three kinds of participation: business managers' participation in IT planning, IT managers' participation in business planning, and top managers' participation in IT resource allocation. Based on considerations of knowledge sharing and commitment, a theoretical model linking these three aspects to three potential consequences-quality of IT plans, IT project problems, and IT-based organization performance-and two antecedents-top managers' perception of IT importance and environmental heterogeneity-is developed. The model is tested using data collected through a survey of 274 chief information officer (CIO) respondents. Results of structural equation modeling analysis support 12 of the 15 hypotheses. Surprisingly, top managers' participation in resource allocation had a stronger association with IT-based organizational performance than either quality of IT plans or the absence of IT project problems. This implies that the role of IT planning and alignment might be weakened when investments reflect top managements' selection. Implications of the study for practice and future research are examined.

Integrated Configuration of Platform Products and Supply Chains for Mass Customization: A Game-Theoretic Approach

Abstract: This paper is concerned with optimizing the configuration of a set of platform products and the associated supply chain consisting of one manufacturer and multiple suppliers using a three-move dynamic game-theoretic approach. The variants in the product family share a common platform for developing/configuring variant modules which are substitutable in the sense that high-end module options can functionally replace low-end ones at higher prices. As the customer in the supply chain, the manufacturer takes its leading role by making the first move to give decisions on platform products development (PPD) and supplier selection. The concerned suppliers make the second move to optimize their decisions including price discounts and their ordering policies. The manufacturer finishes the game by taking the last move to make his ordering decisions. The ranges of the rational reactions for the players are derived from the analyses of their payoff models, and an enumerative algorithm is developed to find the subgame perfect equilibrium of the game through the technique of backward induction. The game model and the proposed solution procedure are illustrated through a series of simulation experiments and sensitivity analyses using a numerical example. The results have allowed us to draw some meaningful interpretations and useful managerial insights. The use of platform commonality and modularity has been found generally beneficial not only to the supply chain as a whole but also to individual players that are eventually configured into the game. Flexibility of the suppliers' capability is also found to affect the PPD decisions

The Influence of Experience and Information Search Styles on Project Risk Identification Performance

Abstract: The management of risks in projects is a growing area of concern. Both the identification and analysis phases of the risk management process are considered the most important, for they can have a big effect on the precision of the risk assessment exercise. Currently, it is assumed that project managers rely largely on experience to identify project risks. These decisions, influenced by individual perception and attitudes, are made primarily under conditions of uncertainty. Understanding how individuals respond to uncertain situations, therefore, requires an understanding of how individuals intuitively assess the situation they perceive, before expressing a response. The Project Risk Identification (Pro-RIde) project interviewed 51 project managers using active information search (AIS) as a data collection method and cognitive mapping as a data-capturing tool. Our results suggest that the role of experience in the risk identification process is much less significant than it is commonly assumed to be. By contrast, information search style, level of education and risk management training do play a significant role in risk identification performance. These findings suggest the potential for a more thorough approach to risk identification

A Service-Oriented Architecture for Mass Customization—A Shoe Industry Case Study

Abstract: The ability of enterprises to react quickly to changes in the business environment is becoming imperative. mass customization (MC) is introduced as a competitive strategy for diversified markets by combining principles of mass production and individualization. Here, information systems (IS) are needed for supporting the entire value chain, especially for managing product and process complexity. Based on a dynamic view of enterprises working together, context-specific IT-services must be provided for successful MC. In software engineering, a similar concept called service-oriented architecture (SOA) is receiving lot of attention. By integrating all the elements of business networks (including organizations and IS) in a loosely coupled manner, technical representation of value processes can be established. In this paper, we present a SOA-based approach for MC and illustrate it with a case study from the shoe industry, based on a publicly-funded research project called "EwoMacs."

Dynamic Capabilities in Small Software Firms: A Sense-and-Respond Approach

Abstract: Small software firms find themselves in highly complex and turbulent environments that require dynamic capabilities to build, integrate, and reconfigure resources. While the literature describes a portfolio of dynamic capabilities that can help the small software firms in adaptation, there are no comprehensive approaches available. We use a sense-and-respond framework as a lens to study the dynamic capabilities in two software firms, Starter Inc. and Mature Inc. The framework integrated the activity- and firm-level capabilities related to input, process, and output of software development. The framework also revealed important variations in sense-and-respond practices as a reflection of differences in maturity between the two firms. We argue that the framework offered a comprehensive and useful approach to understand the dynamic capabilities in the two firms, and on that basis we suggest the principles for how managers can apply the framework to small software firms.

The Contingent Effects on Project Performance of Conducting Project Reviews and Deploying Project Management Offices

Abstract: There is little empirical evidence on the benefits of deploying a project management office (PMO) and/or conducting project reviews. Drawing on the information processing view of organizations, goal setting and social cognitive theory, this study investigates the effects of those two organizational mechanisms on the project performance of organizations in the construction and information systems (IS) industries. The results show that the effects on project performance of deploying PMOs and conducting project reviews are contingent on task uncertainty. Construction organizations improve their project performance by conducting project reviews to provide performance feedback to the project teams, enabling them to make timely adjustments to their project management strategies. In contrast, IS services organizations improve their project performance by deploying PMOs to facilitate cross-project learning.

Standardized Configuration Knowledge Representations as Technological Foundation for Mass Customization

Abstract: The effective integration of configuration system development with industrial software development is crucial for a successful implementation of a mass customization strategy. On the one hand, configuration knowledge bases must be easy to develop and maintain due to continuously changing product assortments. On the other hand, flexible integrations into existing enterprise applications, e-marketplaces and different facets of supply chain settings must be supported. This paper shows how the model-driven architecture (MDA) as an industrial framework for model development and interchange can serve as a foundation for standardized configuration knowledge representation, thus enabling knowledge sharing in heterogeneous environments. Using UML/Object Constraint Language as standard configuration knowledge representation languages, the representation of configuration domain-specific modeling concepts within MDA is shown and a formal semantics for these concepts is provided which allows a common understanding and interpretation of configuration task descriptions

Reconceptualizing Innovation Compatibility as Organizational Alignment in Secondary IT Adoption Contexts: An Investigation of Software Reuse Infusion

Abstract: This paper reconceptualizes the compatibility construct that has generated mixed results in the information systems (IS) literature and develops an organizational alignment (OA) framework for secondary IT adoption contexts, grounded in Leavitt's organizational change model and its extensions and applications in the IS area Rooted in structuration and sensemaking theories, the paper conceptualizes OA as a representation of institutional structures of signification, domination, and legitimation, and proposes that perceived OA between an IT innovation and its complementary organizational components will impact secondary adoption behaviors of organizational members with respect to that innovation This proposition is empirically evaluated through a field study of software reuse at a large US bank Survey data collected from IS professionals are analyzed using partial least squares (PLS) A model comparison approach is utilized to compare the influence of the compatibility and OA constructs on individual-level infusion behavior of IS professionals Results provide good support for the research model As hypothesized, the OA construct is found to be a significant predictor of infusion behavior However, compatibility is found not to have a significant relationship with infusion behavior, adding to the mixed findings about this construct in the literature Results of the study and its limitations, generalizability, contributions, and implications are discussed

A Product and Process Modeling Based Approach to Study Cost Implications of Product Variety in Mass Customization

Abstract: With the growing competition in businesses, satisfying customers' individual requirements has turned into a competitive edge. Highly diversified customer needs lead to not only high product variety but also the associated cost implications. In order to handle the complexity and intertwining relationships of variety and cost, a systematic approach is proposed based on product and process modeling. This approach includes two phases: phase I models product and process variety and studies their relationships; and phase II investigates the relationships between product variety and costs and identifies major additional cost contributors, namely variety cost drivers in the product family design. A case study is presented to demonstrate the feasibility and potential of the proposed approach

Investigating Postadoption Utilization: An Examination Into the Role of Interorganizational and Technology Trust

Abstract: Grounded in the technology acceptance model (TAM), this study examines the influence of technology trust and interorganizational trust on post adoption utilization. This study extends the innovation diffusion literature by drawing upon past diffusion research and considering trust-based determinants in facilitating technology usage. Field interviews were conducted to develop an understanding of the user population and the unique challenges the individuals experienced while working with the new system. The results of the interviews enabled the author to identify which variables to investigate further through the use of a survey data collection protocol. In the present study, 273 first-tier supply chain members of the second-largest U.S. automotive service-parts logistics operation, who were recently introduced to a new supply chain management technology, were surveyed. Using a structural equation model, nine hypotheses were tested. As hypothesized, an individual's technology trust and interorganizational trust have an effect on perceived ease of use and perceived usefulness, which further influence post adoption technology utilization behavior. The results suggest that even in supply chains where usage is mandated, the presence of technology and interorganizational trust can increase individual utilization of new technologies. Implications of this study along with suggestions for future research are provided.

How Do Knowledge Management Announcements Affect Firm Value? A Study of Firms Pursuing Different Business Strategies

Abstract: The importance of knowledge management (KM) efforts is well recognized in the popular and academic press. However, KM efforts do not always lead to improved firm performance. This paper argues that different kinds of KM efforts may be appropriate for firms pursuing different business strategies, and the impact of a KM effort on firm performance would depend on whether the effort is aligned with the firm's business strategy. Prior literature on organizational learning, KM, and business strategy is used to develop these arguments, and also to identify the nature of KM efforts that would be most appropriate for firms pursuing Defender, Analyzer, and Prospector business strategies. An event study is used to evaluate the stock market reaction to a firm's public announcement of the KM effort. The empirical results, based on 103 KM announcements from 1995 to 2002, are consistent with the theory-based expectations, showing alignment between the KM effort and business strategy to be positively associated with impact on firm value. Some of the implications of these results for practice and future research are examined.

The Dynamics of Implementing and Managing Modularity of Organizational Routines During Capability Development: Insights From a Process Model

Abstract: Past research using the resource-based view of a firm suggests that it is important to consider how firms develop, manage, and deploy resources and capabilities to influence the overall process of strategy formation and implementation. Relatively little research has been conducted in conceptualizing how firms implement and manage modularity of organizational routines during capability development. Yet, most companies would benefit from implementing modularity in organizational routines when competing in dynamic market conditions. Such implementations may require fundamental organizational reorientation that incurs significant coordination costs, and in some cases, such modularization attempts may fail, costing organizations significant amounts of valuable resources. This study seeks to conceptualize how modularity of organizational routines can be achieved during the capability development process. We inductively develop a process model of modularization, using qualitative data of an in-depth case study of the capability development experience of a call center. The model reveals that modularization is a complex process, whereby an organization's key functional activities are decomposed into specific operating and strategic routines that are reconfigured iteratively during the process of capability development. Practitioners may derive strategies and tactics from our findings to help them implement and manage the modularity of organizational routines during capability development so as to achieve sustainable competence in fast-moving marketplaces. Researchers should be able to use and develop the theory further with new case studies.

Strategic e-Business Decision Analysis Using the Analytic Network Process

Abstract: The rapid global deployment of electronic business (e-business) and information systems has required managers to make decisions that seek to balance technical factors with strategic business goals. This research utilizes the analytic network process (ANP) to provide insight into optimum-seeking decision processes by managers, as investments are made to utilize e-commerce technologies. The nonlinear network approach of ANP was used to study the "systems with feedback" where the e-commerce strategy may both dominate and be dominated, directly and indirectly, by the business-level strategy. This study analyzes e-business decisions in organizations, based on management heuristics and perceptions of expected contributions of e-commerce strategies, as well as the business-level strategies. The ANP research methodology process is employed since it is well suited for the study of a multi-attribute decision problem to explore qualitative and quantitative preferences of top managers in independent, nondiversified firms involved in e-business. ANP is used to model decision complexities involved in integrating e-commerce innovation into the overall strategic planning of firms. Optimal e-business strategies are chosen by using systems-with-feedback, where interdependencies between four virtual e-commerce domains and two generic business level strategies are explored. This study obtained significant results and identified several important avenues for further research. Implications for theory and research are discussed.

The Complementary Role of Dominant Designs and Industry Standards

Abstract: Models of competition in innovative and standard-based industries have advanced considerably in recent years Two terms that have become important competitive considerations are dominant designs and industry standards This paper describes the potential for confusion between dominant designs and industry standards and attempts to clearly delineate between them The role of standards is narrowly driven by the relative importance of network effects while dominant designs are persistent architectures with established implications for industries However, standards are often important elements of dominant designs There are many implications of this distinct, yet complementary, relationship between standards and dominant designs for managers Perhaps the most important is that while dominant designs have been shown to presage industry shake outs, standards do not In addition, a firm that establishes a dominant design does not often appear to reap competitive advantages from it, though one that establishes a standard may Other implications for managers from this distinction are also discussed, including corporate strategy and first mover advantage

Changeover Improvement: Reinterpreting Shingo's “SMED” Methodology

Abstract: A rapid changeover capability is widely acknowledged as an essential prerequisite to flexible, responsive small batch manufacturing. Its importance in mass customization is recognized, where minimal losses need to be incurred as manufacture switches between differing products. Retrospective improvement of existing changeover practice is often undertaken, arising from pressure to respond better to customer demands, wherein improvement personnel frequently engage Shigeo Shingo's Single Minute Exchange of Die (SMED) methodology to achieve better performance. Irrespective of the improvement methodology that is employed this paper assesses two fundamental mechanisms by which better changeovers might be achieved. First, improvement can occur by altering when tasks are conducted. Better allocation of tasks to the resources necessary to conduct them is sought, where the tasks themselves remain essentially unchanged. The second mechanism is to seek structural change to existing tasks, thereby intrinsically enabling them to be completed more quickly. These two mechanisms are described in relation to use of the SMED methodology, where it is argued that, by reinterpreting Shingo's work, greater clarity of potential improvement options can be gained