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ABSTRACTThis article comprehensively examines how the four facets of new product development (NPD) concurrency, consisting of process and product concurrency groupings, influence NPD project performance under the five contextual conditions of (i) location of product in family stream, (ii) project size, (iii) stage in the product life cycle, (iv) innovativeness of the product, and (v) predictability of market demand. Using data from a large sample of NPD projects in multiple industries, there is support for this hypothesized four‐faceted structure of concurrency, consisting of process and product concurrency groupings, thereby contributing new knowledge to the concurrency literature. All four facets of concurrency display a contingent impact on NPD project performance, even though individual effects vary according to the specific contextual variable under consideration. In particular, the process concurrency facet of dynamic iterative routines was universally effective across all five contextual variables, while the product concurrency facet of cross‐functional coordination was effective in significantly influencing at least one NPD project measure. This article also reports similar, but less strong, contingency patterns, with respect to the process concurrency facet of the implementation of downstream coordination and the product concurrency facet of the use of computer‐based integrated design tools. Theoretical and practical implications of our results are also offered.

ABSTRACTAs the field of decision sciences in general and operations management in particular has matured from theory building to theory testing over the past two decades, it has witnessed an explosion in empirical research. Much of this work is anchored in survey‐based methodologies in which data are collected from the field in the form of scale items that are then analyzed to measure latent unobservable constructs. It is important to assess the invariance of scales across groups in order to reach valid, scientifically sound conclusions. Because studies have often been conducted in the field of decision sciences with small sample sizes, it further exacerbates the problem of reaching incorrect conclusions. Generalizability theory can more effectively test for measurement equivalence in the presence of small sample sizes than the confirmatory factor analysis (CFA) tests that have been conventionally used for assessing measurement equivalency across groups. Consequently, we introduce and explain the generalizability theory (G‐theory) in this article to examine measurement equivalence of 24 manufacturing flexibility dimension scales that have been published in prior literature and also compare and contrast G‐theory with CFA. We show that all the manufacturing flexibility scales tested in this study were invariant across the three industry SIC groups from which data were collected. We strongly recommend that G‐theory should always be used for determining measurement equivalence in empirical survey‐based studies. In addition, because using G‐theory alone does not always reveal the complete picture, CFA techniques for establishing measurement equivalence should also be invoked when sample sizes are large enough to do so. Implications of G‐theory for practice and its future use in operations management and decision sciences research are also presented.

Even though much research has been published in operations and information systems, both functional areas find their roots in other disciplines. While operations management evolved from operations research in the 1960s, the field of information systems is of more recent vintage and traces its original roots to computer science. Both disciplines now naturally have come closer together as information and process‐technology‐based changes force manufacturing firms to become more efficient and customer focused. Market and technology‐driven e‐commerce initiatives that are likely to dominate business strategies in the future cannot be successfully achieved without a successful integration of operations and information systems. In this paper, we present a unifying framework that can be used to better understand the management of the functional interface between operations and information systems. We also categorize and highlight the contributions of the articles that appear in this special research focus issue. Finally, research directions that emerge from our understanding of this interface are outlined in an effort to stimulate further thinking and research that can advance our knowledge of this interface area.

PurposeThe purpose of this paper is to examine differences in manufacturing managers' perceptions of functional area power in manufacturing organizations to address the perception in the literature that manufacturing has little if any power in the organization.Design/methodology/approachSurvey data gathered from 129 manufacturing executives in the USA are used to examine their perceptions of differences in functional power in manufacturing firms. Relative rankings of functional areas for four types of power – position, expertise, resource, and political – are used to examine perceived differences, and the relationship between power and the role of the manufacturing executive in strategic decision making.FindingsContrary to prior assertions in the manufacturing strategy literature, it was found that the manufacturing and marketing areas are perceived by manufacturing managers to be the most powerful functions, switching in their dominant roles depending upon the type of power. In addition, a relationship exists between position, expertise, and political power and the role of the manufacturing executive.Research limitations/implicationsAlthough, this research includes a second respondent from a sub‐sample of firms, future research should examine not only the manufacturing managers' perceptions of intra‐organizational power, but also should dovetail the paper's findings with perceptions of managers in other functional areas as well.Practical implicationsManufacturing managers can take actions to enhance their role in business‐level strategic decisions and be proactive in increasing the power of their functional area.Originality/valueThis paper addresses intra‐organizational power, which has not been examined in the manufacturing strategy literature from the perspective of the manufacturing manager's perception.

ABSTRACTWe test the situational impact of two types of resource flexibility, machine flexibility and labor flexibility, in a material requirements planning (MRP)‐driven production system. Machine flexibility has not been treated in prior multistage research, only labor flexibility. Machine flexibility is closely related to a plant's positioning strategy. A process‐focused plant opts for considerable machine flexibility by choosing general‐purpose equipment. Resource flexibility, if effective, can be an attractive alternative to two other types of buffers, inflated inventories and costly capacity cushions.Our simulation results, using factor settings established earlier by a panel of managers, show that resource flexibility is indeed an effective buffer against uncertainties such as end‐item demand variability, capacity bottlenecks, equipment failures, and yield losses. Machine flexibility is especially helpful in environments characterized by high uncertainties, tight capacities, and large lot sizes. Worker flexibility has a similar, but less dramatic, impact. Benefits are most striking with customer service, rather than with inventory or labor productivity. Finally, we show that simultaneous introduction of both machine and labor flexibility yields only marginal improvements over either kind of flexibility alone.

ABSTRACTManufacturing process improvement teams often draw upon cross‐functional expertise. However, teams dominated by a single or few functions often do not achieve the desired interdisciplinary learning and cooperation, which in turn could negatively affect the performance of that cross‐functional team. Through an empirical analysis of 149 manufacturing process improvement teams in six SIC industrial categories, we show that even after controlling for several factors such as team size, number of functions, gender diversity, ethnicity, number of management levels, and geographic dispersion of team members, psychological safety of work environment fully mediates the relationship between functional dominance and team performance. We also confirm that a team leader possessing high interpersonal justice mitigates the deficiency of dominated teams and improves team performance by fostering a psychologically safe work environment. Our recommendation therefore is that when a dominated team is unavoidable due to the needed skill sets or other organizational considerations, to ensure success it is imperative that the firm chooses a team leader who can promote psychological safety by being just, and who can effectively encourage input from all functional team members and give them objective feedback.

ABSTRACTSome firms have gained significant benefits by effectively deploying interorganizational systems (IOS) to tightly couple operations with their supply chain partners. In contrast, other firms with IOS deployments have struggled to achieve this level of success. So it is not clear how such systems can be configured to promote idiosyncratic interorganizational processes that integrate the supply chains and facilitate successful outcomes. To shed further light on this issue, we draw from multiple theoretical perspectives to develop a comprehensive and unique conceptualization of IOS characteristics that goes beyond the limited treatment it has received in extant literature. Furthermore, we empirically examine the IOS configuration choices made by firms with different supply chain integration (SCI) profiles. Our results support the notion that successful firms sequence the configuration of IOS characteristics toward effectively developing and supporting their supply chain process capabilities. In particular, we found that firms at the lower end of SCI configure IOS features to support supplier evaluation and automatic alerts. As organizations move to the upper end of the SCI spectrum, greater attention is paid to features associated with systems integration, planning, and forecasting. Recommendations to managers and academics stemming from our study are provided, along with avenues for future research.

ABSTRACTManufacturing firms are increasingly seeking cost and other competitive advantages by tightly coupling and managing their relationship with suppliers. Among other mechanisms, interorganizational systems (IOS) that facilitate boundary‐spanning activities of a firm enable them to effectively manage different types of buyer–supplier relationships. This study integrates literature from the operations and information systems fields to create a joint perspective in understanding the linkages between the nature of the IOS, buyer–supplier relationships, and manufacturing performance at the dyadic level. External integration, breadth, and initiation are used to capture IOS functionality, and their effect on process efficiency and sourcing leverage is examined. The study also explores the differences in how manufacturing firms use IOS when operating under varying levels of competitive intensity and product standardization. In order to test the research models and related hypothesis, empirical data on buyer–supplier dyads is collected from manufacturing firms. The results show that only higher levels of external integration that go beyond simple procurement systems, as well as who initiates the IOS, allow manufacturing firms to enhance process efficiency. In contrast, IOS breadth and IOS initiation enable manufacturing firms to enhance sourcing leverage over their suppliers. In addition, firms making standardized products in highly competitive environments tend to achieve higher process efficiencies and have higher levels of external integration. The study shows how specific IOS decisions allow manufacturing firms to better manage their dependence on the supplier for resources and thereby select system functionalities that are consistent with their own operating environments and the desired supply chain design.

AbstractUtilizing behavioral experiments involving approximately one thousand subjects, we empirically evaluate the relationship between volume flexibility and the Bullwhip Effect (BWE). We not only evaluate differences in the level of BWE, but also differences in associated system performance. We find that systems with hard capacity constraints are effective at limiting BWE, but also produce very poor customer service levels. However, systems with low levels of volume flexibility generate similar performance as fully flexible systems but do so while also generating a lower BWE. In a multi‐echelon setting, we show that having partial volume flexibility at the upstream echelon helps in reducing order variance, with no significant drop in service level in the supply chain. This is particularly useful in those manufacturing environments which prefer stable orders for production planning without affecting the downstream customer service level. Counterintuitively, both experiments uncovered instances of irrational behavior where participants invoked flexibility in ways that did not always enhance system performance. In addition, these experiments also established enhancements in BWE and system performance through introduction of incremental volume flexibility into upstream echelon of a supply chain.

ABSTRACTFirms move to emerging markets to sell their products, reach new markets, and to strategically offshore or outsource their production and supply chains. However, they may also take advantage of loose environmental regulations and weak protection of existing laws in emerging market countries. Anecdotal evidence and media reports claim that increased firm activity in emerging economies such as China, India, Brazil, among others, has resulted in more significant environmental pollution. However, statistical evidence is lacking in this area. This research consequently investigates the impact of two forms of emerging market presence: the extent of offshoring penetration and extent of sales penetration on emissions performance. We conduct an empirical study using a panel dataset consisting of 300 global firms across various industries, along with their emission levels and emerging market penetration levels. Analysis of over six years of data from 2007 to 2012 shows that even after factoring in the endogeneity related to entry into emerging markets, firms that have a greater degree of emerging market penetration do indeed have higher emissions. We also find that a firm's beneficial actions related to environmental corporate social performance attenuate the relationship between emerging market penetration and emissions, whereas a firm's harmful actions related to environmental corporate social performance amplifies this relationship. Implications of this study for a firm's future strategic location and offshoring decisions are discussed and presented.

ABSTRACTAcademics and practitioners alike are focusing more attention on manufacturing strategy after having recognized the important role it plays in shaping the success of industrial firms. Even though research in this area has increased in the last decade, the focus of much of that work has been on the content rather than the process of the manufacturing strategy. Consequently, this study attempts to understand the important elements of the strategic manufacturing planning process and its effectiveness. Borrowing from the extant literature in the fields of strategic management and information systems, we propose a research model that relates strategic manufacturing planning system design to planning system success. Using structured questionnaires, empirical data is collected from over 200 manufacturing executives to test the model hypotheses. Planning process in manufacturing was found to be a bottom‐up approach from a corporate or business perspective, which differs from the top‐down planning process prevalent in strategic information systems planning process. Findings also indicate that greater planning system success in manufacturing is associated with a planning system that combines some "rational" elements (formality, comprehensiveness, control focus, longer horizon) with others that lend adaptability (wider participation and more intense interaction). But the strategic manufacturing planning system is more than just a collection of independent planning characteristics. Instead, it can be viewed as a gestalt planning system whereby planning characteristics move together in affecting overall planning system success.

AbstractWe present a framework for managing vital customer priorities in job‐shop manufacturing environments. We introduce the notion of attaining near‐perfect on‐time delivery service to a small portion of the firm's customers who contribute to a substantial portion of its sales revenue and profits. Consequently we postulate that appropriate order review and release (ORR) policies, along with the dispatching rules used to schedule customer orders, can be combined effectively to achieve the desired customer service results. Several dispatching rules specifically designed for this study are tested under different operating environments in order to derive the recommended set of ORR and dispatching rule policies. Capacity‐based ORR procedures, in conjunction with dispatching rules that pace a job's progress through different operations in its route, provide the best overall performance. The nature of trade‐offs inherent in managing the priorities of vitally important customers are also identified and presented in the form of managerial recommendations that can be used to enhance a job shop's overall performance.

ABSTRACTWe investigate the performance of capacity‐sensitive order review and release (ORR) procedures in job shop environments that have not been previously explored. Previous research has ignored the case of job shops which must perform to very tight due‐dates because of time‐sensitive customers. We propose and test a new capacity sensitive ORR procedure called path based bottleneck (PBB) in such environments, along with the modified infinite loading (MIL) procedure which has been shown to work well in several studies. We compare the performance of these two controlled release rules with that of immediate release rule under different conditions of capacity utilization and customer specified exogenous duedates. Our results indicate that PBB performs well in lowering total costs when due‐dates are tight, while MIL is a better procedure with relatively loose to medium due‐dates. We also show that in many cases, the shortest processing time (SPT) dispatching rule is a superior performer than a due‐date based rule like critical ratio (CR); a conclusion which is contrary to the existing research in this area. In addition, the shop floor control policies recommended are shown to be sensitive to the cost structure of the firm. The managerial implications of this research in providing effective shop floor control in job shops operating under tight due‐date conditions are also discussed.

ABSTRACTThis study investigates the impact of worker learning, worker flexibility, and labor attrition on the system performance of a dual resource constrained (DRC) job‐shop. The effects of learning and labor attrition have not been previously addressed in DRC literature. Results from the study, consistent with previous literature, show that the greatest benefits are achieved when inter‐departmental worker flexibility is incrementally introduced into the system. In addition, the learning environment, which depends on the initial processing time of jobs and the learning rates of workers, is shown to impact the acquisition of flexibility. The study also shows that the impact of labor attrition on system performance under certain shop conditions may be significant.