Search

Companies are increasingly exposed to the risk profile of their supply network and managing this risk is gaining in importance in a tightly interconnected global and competitive business environmen...

PurposeAdopting the dynamic capability perspective, this study aims at exploring which problem-solving capabilities result in fundamental solutions with a potentially low likelihood for problems to recur. This can also shed light on why, despite many attempts, process improvement programs often fail to produce such long-term solutions.Design/methodology/approachA case study is carried out to inductively describe and classify problem-solving in companies and to indicate why problem-solving efforts are typically bounded to short-term solutions. The empirical findings are triangulated with findings from the extant literature.FindingsFirst, the authors propose three problem-solving modes with different characteristics and potential impacts on operational performance: intuitive problem-solving, semi-structured problem-solving and systematic problem-solving. Second, by emphasizing dynamic capabilities' micro-foundations and with the focus on learning mechanisms, the authors show that, among these modes, only systematic problem-solving can serve as a dynamic capability with fundamental solutions. Third, based on insights from the case study, the authors address behavioral and organizational impediments that curb dynamic capabilities and limit systematic problem-solving adoption.Originality/valueThis study is an empirically informed attempt to understand systematic problem-solving as a dynamic capability. The authors uncover the micro-foundations and the learning mechanisms through which systematic problem-solving becomes a dynamic capability. By highlighting problem-solving orientation as a hardly investigated dimension of improvement programs, the authors show that a mixture of a static problem-solving approach and a set of impediments at both individual and organizational levels is the major reason of failures of improvement programs over time.

PurposeManaging supply risk is gaining in importance in the tightly interconnected global economy. Identifying the relevant risks is the foundation of any risk management process. Therefore, the purpose of this paper first is to provide a short introduction to supply risk management, before focussing on the identification of such risks in more detail. A holistic framework of the identified supply risks, which distinguishes between risk dimensions and risk factors in manufacturing upstream supply networks, is proposed.Design/methodology/approachThis study applies a mixed methods research approach. Data are collected based on a structured literature review in combination with the analysis of company-specific documents and semi-structured expert interviews. Subsequently, a deductive content analysis is carried out to derive a holistic framework of supply risks, adapted to the manufacturing industry. For the external validation of the conceptual supply risk framework, additional experts from several manufacturing companies were consulted.FindingsBased on the definition and delimitation of supply risk, a categorization of supply risks is developed. The relevant literature, as well as expert interviews, lead to the distinction of six supply risk dimensions: quality, delivery, collaboration, economic, ambience and compliance. A total of 27 risk factors can be assigned to these dimensions. A holistic foundation for the management of supply risk is thus created.Originality/valueThis study provides a holistic framework of relevant supply risks in the context of the manufacturing industry. This overview of identified risks offers a novel perspective on risk in manufacturing supply networks that can be helpful in researching assessment and mitigation strategies. Despite the high relevance and popularity of this field of research, such an overview with a focus on manufacturing had not yet been made available in the literature. Building thereon, management approaches can now be developed to handle the risk arising from the upstream of the supply network.

Adopting a systems thinking perspective, this study establishes the micro-foundation of two distinct behavior modes in the context of operational problem-solving. More specifically, we explicate how problem-solvers cope with problems by unpacking potential behavior modes from a cognitive perspective. Drawn from dual-process theory, the first behavior mode is based on heuristic reasoning to eliminate problem symptoms whereby problem-solvers work around the problems employing short-term remedies and prompt fixes to temporarily solve the problem. The second mode relies on structured reasoning aimed at solving the problems fundamentally with the help of structured corrective actions. We label them as intuitive and analytical problem-solving respectively (IPS and APS). Although the effectiveness of APS to achieve sustainable success has been asserted in the literature, problem-solvers are more likely to adopt IPS, a phenomenon that is called “IPS dominance”. Motivated by field work at a manufacturing plant, we develop a system dynamics model to scrutinize these two behavior modes separately as well as the transition dynamics between them to shed light on the major reasons of for “IPS dominance”.

PurposeThe purpose of this paper is to investigate the effects of extended production disruptions because of process quality breakdowns on operational and financial performance. The investigation is conducted over the market cycle of a highly profitable product, e.g. a patented pharmaceutical. In particular, the study evaluates performance effects of different inventory level policies. The paper considers different degrees of availability of a substitute product.Design/methodology/approachThe study uses simulation experiments based on system dynamics methodology to derive inventory policies on handling infrequently happening but severe production process breakdowns. The simulation model is inspired by empirical case study research and is based on standard modeling formulations from the literature.FindingsThe scenario analyses show that the optimal level of safety stock coverage time depends in a highly non-linear manner on various economic parameters and shows threshold behavior.Research limitations/implicationsIn subsequent studies, the effect of the degree of backlogging and the effect of the repeated occurrence of quality breakdowns on the results can be investigated.Practical implicationsThe critical importance of safety stock and its non-linear relationship to economic product characteristics is emphasized.Originality/valueMotivated by a real-world case study, the paper uses standard model formulations to derive insights for a specific business situation after considering uncertainty in the environment.

Degrowth is most commonly defined as a socially sustainable and equitable reduction (and eventually stabilisation) of society’s throughput. Throughput refers to the materials and energy that societ...

Highly improbable events can have a substantial impact on complex socio‐economic systems and are frequently difficult to predict beforehand but easy to explain afterwards. Antifragile systems can withstand and benefit from this kind of outlier events, whereas merely robust systems cannot in any case. Yet the aim to design robust systems is almost as old as the system dynamics field itself. This research therefore aims to investigate the extent to which an antifragile system design criterion is more valuable than a robust one. By means of an extensive literature review, a simulation model was constructed, which is demonstrated to be antifragile. Comparing the antifragile and robust versions of the model shows that the former—as theorized—yields more favourable results in an environment with impactful outlier events. Implementing antifragility in systems involves the difficult task of changing policies (and, eventually, the mental models) of decision‐makers. Consequently, this research concludes that antifragility should not and cannot always be attained; its feasibility is to be assessed at the start of a system dynamics modelling project.

The digital transformation affects individuals, businesses as well as society as a whole. Supply chains are no exception when it comes to the substantial impact of this transformation on almost all aspects of human life — worldwide. The digital transformation in supply chains will change the way materials, information and financial flows are managed within an integrated business network consisting of suppliers, manufacturers, distributors and customers. Within supply chain management, increased demand variability in supply chains moving from the lowest echelon to the highest (the bullwhip effect) has been discussed extensively in the literature. Considering the emergence of the digital transformation, new possibilities for the scientific study of the bullwhip effect arise. The purpose of this paper is to provide an overview of how digital technologies impact operational causes of the bullwhip effect. Therefore, a systematic literature review is conducted, identifying relevant literature and summarizing the pertinent body of knowledge. This work not only gives practitioners inspiration for bullwhip-reducing technology usage, but also identifies research gaps, inspiring further scientific investigation.

This study empirically investigates the relationships between lean management practices, dynamic capabilities, and sustainable business performance (including economic, environmental, and social performance). Based on the dynamic capabilities approach, known also as a theory of sustainable competitive advantage, we explain why many adopters of lean management fail to sustain positive outcomes over time. More concretely, first, this study conceptually identifies systematic problem-solving, agile manufacturing (or change proficiency), and continuous improvement as higher-order or “lean-related dynamic capabilities” that seem to be effective for sustainable benefits. Then, a survey questionnaire on a sample of 99 Italian manufacturing firms is carried out and results of partial least square structural equation modelling indeed reveal that “lean-related dynamic capabilities” can serve as mechanisms through which lean management contributes to sustainable business performance. The main findings help to distinguish between “lean adopters” achieving sustainable outcomes and “lean duplicators” obtaining only short-term outcomes and quick wins. For firms to become “lean adopters”, they are required not only to consider lean as a full package but also to constantly establish and develop higher-order or “lean-related dynamic capabilities”. This study is an innovative empirically-informed attempt to conceptualize “lean-related dynamic capabilities” and embed them into a framework through which lean management practices result in sustainable outcomes.

Contains fulltext : 200968pub.pdf (Publisher’s version ) (Open Access) 11 februari 2019 9 p.

Dynamic stock control tasks have been frequently used in laboratory experiments in behavioural research to investigate understanding of dynamic systems. In these studies, the dynamic system is often represented in the form of a simulation model, and they almost exclusively focus on how the structure of a system (i.e. the simulation model) affects human's inference of system behaviour. In doing so, these studies fail to consider that human's performance on dynamic decision making tasks might also be a function of the complexity embedded in other task components like goals, input, processes, output, time and presentation. Hence, the objective of this paper is to carve out what task complexity entails when applied to dynamic stock control tasks in order to determine its usefulness for future research on human understanding of such tasks. In this paper, task complexity is conceptualized consisting of ten complexity dimensions: (1) size; (2) variety; (3) redundancy; (4) ambiguity; (5) variability; (6) inaccuracy; (7) novelty; (8) incongruity; (9) connectivity; and (10) temporal demand. Copyright © 2016 John Wiley & Sons, Ltd.

This study analyzes the dynamics of intra-organizational innovation implementation processes based on conversion within and migration between groups. We employ a diffusion model that extends often-used epidemic models in three ways: (i) repeated acceptance and rejection decisions of adopters and non-adopters; (ii) diffusion within and across groups organized in different network structures; and (iii) management's continuous influence on the diffusion process. The model is used to identify and evaluate senior management's possibilities to steer the diffusion process. Analyses reveal that network structure influences the interplay between the self-reinforcing dynamics of conversion and the balancing dynamics of migration. Additionally, management can minimize diffusion time and invested resources by considering the proximity of groups to each other and to the network periphery. Providing structural explanations, this study offers insights into why, given various intra-organizational networks, management policies can yield different results on whether and how innovations are adopted in an organization.

Contains fulltext : 166103.pdf (Publisher’s version ) (Closed access) This study explores whether the negative impact of “groupthink concurrence-seeking behavior” (GTB) on business process reengineering (BPR) projects is affected by group members personal traits and interpersonal ties within the group. To this purpose we conduct and present the results of a longitudinal controlled field experiment over 18 BPR projects lasting 3 months and involving 18 teams comprising 71 first-year MBA students. The main contribution of this study is twofold. First, we explicitly consider and measure the core construct of groupthink phenomenon: that is, GTB. Existing organizational behavior literature has, contrarily, considered only its causes, symptoms, and outcomes. Second, we show evidence that GTB does have a negative impact on group performance in BPR project settings. In this regards, results also indicate that while perceived control, conscientiousness and interpersonal evaluation mitigate the negative impact of GTB on group project performance, confidence, and previous relationships amplify this negative impact, even if they have a direct positive effect on performance. Thanks to the findings of this study, we are able to provide valuable suggestions to managers in charge of BPR projects for ensuring effective performance of project teams and controlling for potential obstacles due to GTB. 26 augustus 2015

Boom and bust patterns are omnipresent in the development of enterprises. An abundance of examples for businesses that grow at first and then collapse can be found. Although evolutionary economists tend to welcome the rising and vanishing of companies and believe in the survival of the fittest (based on competitive market forces), owners and managers of firms have a different concern: they strive for a sustainable business model. However, designing as well as implementing sustainable business strategies is a major challenge. Analysing data from a dynamic decision making experiment, we are able to show that participants struggle with successfully implementing a business growth strategy without either falling into the trap of overshoot and collapse or heavily underperforming in relation to potential success. We relate participants’ sub-optimal performance to the way they invest in and manage relevant business resources in a simulation-based experiment. Copyright © 2012 John Wiley & Sons, Ltd.

Contains fulltext : 112249.pdf (Publisher’s version ) (Closed access) 6 p.

This study demonstrates how a dynamic, aging chain model can support strategic decisions in workforce planning. More specifically, we used a system dynamics model (a modeling and simulation technique originating from supply chain management) to improve the recruiting and training process in a large German service provider in the wider field of logistics. The key findings are that the aging chain of service operators within the company is affected by a variety of delays in, for example, recruiting, training, and promoting employees, and that the structure of the planning process generates cyclic phases of workforce surplus and shortage. The discussion is based on an in-depth case study conducted in the service industry in 2008. Implications are that planning processes must be fine-tuned to account for delays in the aging chain. The dynamic model provides a tool to gain insight into the problem and to improve the actual human resource planning process. The value of the paper lies in the idea of applying a well-known and quantitative method from supply chain management to a human resource management issue. © 2010 Wiley Periodicals, Inc.

PurposeThe purpose of this paper is to investigate the dynamics of accumulation processes of strategic capabilities in manufacturing, i.e. cost, quality, delivery, and flexibility. By applying a dynamic view, concepts from the literature are tested and shortcomings are identified.Design/methodology/approachThe analysis was conducted with the help of an exploratory system dynamics model that represented a hierarchy of these accumulative capabilities. The exploratory model was parameterized with empirical data from a large international survey of manufacturing plants.FindingsThe major finding of this paper is that results from a static analysis can be transferred into a dynamic model, which can be used to test allocation strategies of resources to strategic capabilities.Practical implicationsThe practical implications concern the distribution of managerial attention on the four capabilities and the consequences of different distributions.Originality/valueThe value of this paper lies in the insights gained by the transformation of a verbal model into a quantified simulation model, and the learning resulting from simulation experiments.

Contains fulltext : 86868.pdf (Publisher’s version ) (Open Access) The purpose of this exploratory paper is to find differences in the occurrence of and the relationships between strategic capabilities for manufacturing firms in developed and emerging markets. To this end, a longitudinal approach is taken, and developments of capability structures in the two types of markets over time are analysed. By concentrating on strategic capabilities, this paper adds to the sparse literature on operations’ globalisation taking a resource-based, internal perspective. 8 p.

The purpose of this paper is to explore differences of the manufacturing strategy between plants that produce in a global manufacturing network and such plants that are part of local production only. Both groups of firms serve a worldwide market. As methodology, the paper uses statistical analyses, in particular difference and correlation tests, which are based on data from the fourth round of the International Manufacturing Strategy Survey (IMSS). Major findings are that the two groups of plants differ concerning their order winners, capabilities and performance. Both types of plants exist in substantial quantities within the sample. Based on these results, the paper puts forward a detailed research agenda of manufacturing strategies in international contexts.

Contains fulltext : 87043.pdf (Publisher’s version ) (Closed access) Contains fulltext : 87043-a.pdf (author's version ) (Open Access) 5 p.

The purpose of the paper is to demonstrate the usefulness of (1) system dynamics as a structural theory for operations management and (2) system dynamics models as content theories in operations management. The key findings are that, although feedback loops, accumulation processes, and delays exist and are widespread in operations management, often these phenomena are ignored completely or not considered appropriately. Hence, it is reasoned why system dynamics is well suited as an approach for many operations management studies, and it is shown how system dynamics theory can be used to explain, analyze, and understand such phenomena in operations management. The discussion is based on a literature review and on conceptual considerations, with examples of operations management studies based on system dynamics. Implications of using this theory include the necessary re-framing of some operations management issues and the extension of empirical studies by dynamic modeling and simulation. The value of the paper lies in the conceptualization of the link between system dynamics and operations management, which is discussed on the level of theory.

Contains fulltext : 157402.pdf (Publisher’s version ) (Closed access) The purpose of this study is to investigate whether product complexity moderates the impact of integration programs in both new product development (NPD) and supply chain (SC) management on operational performance. Results are based on statistical analyses of data collected from an international sample of manufacturing firms through the fifth edition of the International Manufacturing Strategy Survey (IMSS 5). The main findings are that NPD and SC integration do have an impact on performance, while product complexity alone has not. When considering the moderating effect, complexity has no impact on NPD integration, while there is a negative moderating impact on SC integration. This study bridges together different streams of research, showing how both NPD and SC integration allow managing product complexity while improving performance. 17 april 2015

PurposeThe purpose of this paper is to examine the relationships between strategic manufacturing capabilities, particularly whether they are cumulative or trade‐off in nature.Design/methodology/approachUses statistical analyses, particularly structural equation modelling based on data from the third round of the International Manufacturing Strategy Survey.FindingsFinds mostly cumulative effects between the strategic capabilities. Shows that “quality” is a basis for “delivery”, which is a basis for “flexibility” and “cost”; between “flexibility” and “cost” an unclear relationship is found. Whether “flexibility” and “cost” are pursued exclusively or simultaneously seems to be connected with the implementation of certain improvement programmes.Research limitations/implicationsResults cannot be interpreted in a prescriptive way, but only as descriptive findings stemming from a large empirical database. Future research in this area needs to be extended by longitudinal analyses and simulation studies because cross‐sectional analyses can only provide indirect empirical measures of dynamic changes of capabilities.Practical implicationsDescribes a common pattern of capability accumulation in the industries investigated. This information can be used to estimate potential competitor behaviour or as a way to perform in an innovative manner.Originality/valueOffers a clear conceptualisation of strategic capabilities with the help of an empirical study.

PurposeBased on a conceptual framework of the linkages between strategic manufacturing goals and complexity, the purpose of this paper is to investigate adaptation processes in manufacturing firms to increasing external complexity.Design/methodology/approachHypotheses are tested with statistical analyses (group comparisons and structural equation models) that are conducted with data from the third round of the International Manufacturing Strategy Survey.FindingsThe study shows that manufacturing firms face different degrees of complexity. Firms in a more complex environment tend to possess a more complex internal structure, as indicated by process configuration, than firms in a less complex environment. Also depending on the degree of complexity, different processes of adaptation to increases in external complexity are initiated by organisations.Research limitations/implicationsResearch studies taking into account the dynamics of adaptation processes would be helpful in order to draw further conclusions, for instance, based on longitudinal analyses or simulation studies.Practical implicationsDepending on the level of complexity a firm has been confronted with in the past, different adaptation processes to further growing complexity can be initiated. Firms in high complexity environments have to re‐configure their strategic goals; firms in low complexity environments have to build‐up internal complexity to cope with demands from the outside.Originality/valueThe paper distinguishes between adaptation processes in low and high complexity environments and provides explanations for the differences.

The paper reviews references to bounded rationality within the system dynamics literature. It is argued that so far the relation between bounded rationality and system dynamics has primarily been discussed from a ‘content’ perspective, that is, that boundedly rational decision making needs to be incorporated in the detail of system dynamics models because of the methodology's aspiration to represent real, not ideal decision making. In this paper this content view is extended by a new ‘process’ perspective. This perspective concerns effects observed at the level of whole models. For example, during modelling the developer of a system dynamics model is prone to be influenced by the limitations of rationality, which might lead to erroneous models. In the same way, users conducting simulation experiments with models are prone to carry out these simulations in an unsystematic way and might draw wrong conclusions from the simulation outcomes. The paper then outlines the connections between the established content view and the new process view on bounded rationality in system dynamics. These connections lie in the knowledge elicitation phase of modelling and in the changes of real systems on the basis of insights gained in modelling and simulation. The paper closes with a brief statement of the research that the author is conducting with a view to exploring further these ideas. Copyright © 2004 John Wiley & Sons, Ltd.

A research workshop at Mannheim University, Germany, brought together a small group of Europe-based experts in system dynamics to discuss basic assumptions about rationality in system dynamics modeling and simulation. As an underlying theme it was found that—although system dynamics is open for various notions of rationality—policies are mostly modeled to be bounded rational and, in this sense, system dynamics models are valid descriptions of real-world situations. By reviewing key points emerging during the debates against the relevant literature, this article identifies a number of important further research issues. Copyright © 2004 John Wiley & Sons, Ltd.

Simulators can be used for experimentation and for teaching purposes. How far promises of useful applications of simulators in these areas are justified is, however, an open question. Evaluation research on simulators is still in its infancy, both inside and outside the system dynamics community. A reason for this is methodological issues that derive from the nature of experimenting/teaching, but which are also caused by the specific characteristics of simulators. Fifteen such issues are identified and explained in this article and classified into three categories; methods for the mitigation of these issues are discussed. Copyright © 2004 John Wiley & Sons, Ltd.

The workshop dinner included two after dinner events. The first was the Socratic dialogue recorded elsewhere in this special issue. The second was a presentation to the workshop’s guest of honour, Prof Peter Milling. Jurgen Strohhecker and Andreas Grosler had already organized a Festschrift for Peter (Strohhecker and Grosler 2009) but the three editors felt that the workshop was an unmissable opportunity to express the thanks of all who had benefited and continue to benefit from Peter’s contribution to the field. As workshop hosts, Andreas and Jurgen therefore thanked the workshop participants for attending. The celebratory address was then delivered by David Lane, then President of the System Dynamics Society.