Strategic Flexibility: A Model in supply chain - PowerPoint PPT Presentation

Loading...

PPT – Strategic Flexibility: A Model in supply chain PowerPoint presentation | free to download - id: 3b5ff6-OTNlY



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Strategic Flexibility: A Model in supply chain

Description:

Strategic Flexibility: A Model in supply chain Wang Zhiqiang August 24,2005 Outline Introduction Research questions Conceptual model Literature review & Hypothesis ... – PowerPoint PPT presentation

Number of Views:187
Avg rating:3.0/5.0
Slides: 27
Provided by: bafCuhkE
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Strategic Flexibility: A Model in supply chain


1
Strategic Flexibility A Model in supply chain
  • Wang Zhiqiang
  • August 24,2005

2
Outline
  • Introduction
  • Research questions
  • Conceptual model
  • Literature review Hypothesis
  • Conceptualization Measurement
  • Methodology
  • Expected results
  • QA

3
Introduction
  • Changes in market environment-from stable to
    dynamic
  • Rapid technology change
  • Global competition
  • New patterns of product competition (Sanchez,
    1995)
  • Real-time market research
  • Rapid product proliferation
  • Intensive market segmentation
  • Rapid performance improvement

4
Introduction
  • These dynamic competitive forces call for firms
    to be efficient, innovative, and flexible.
    (Duncan, 1976)
  • In SCM perspective, the company should integrate
    its activities into key supply chain processes
    other than managing individual functions (Lambert
    et al, 2000)

5
Introduction
  • Customer and supplier involvement in product
    development is beneficial to firms. (Handfield et
    al.,1999 Hartley et al., 1997 Campbell and
    Cooper, 1999 Koufteros et al.,2005 )
  • From strategic fit to strategic flexibility
  • strategy as commitment fades and strategy as
    strategic flexibility increase (Sanchez,1997)
  • Strategic flexibility help firms to achieve
    sustained profitability in dynamic market
    conditions (Hitt et al.,1998Sanchez,1995Das
    Elango,1995)

6
Research questions
  • What is the indirect impact of customer and
    supplier involvement in NPD on strategic
    flexibility
  • What factors will mediate the relationship
    between customer and supplier involvement in NPD
    and strategic flexibility
  • What is the influence of strategic flexibility on
    firm performance
  • How to define and measure strategic flexibility
    in the paradigm of NPD

7
Conceptual model
SI supplier involvement in NPD CI customer
involvement in NPD TI technological innovation
adoption (manufacturer) MF manufacturing
flexibility (manufacturer) SF strategic
flexibility (manufacturer) FP financial
performance (manufacturer)
8
Literature review
  • Customer involvement is defined as the direct
    participation of the customer in the design and
    implementation phases of customization during
    which the customer organization engages in
    problem solving activities with the vendor, and
    co-creates the final product. (Sioukas,1995)
  • Supplier involvement is defined as having one or
    more employees of a supplier as recognized
    members of the product development team, actively
    participating in team meetings and design
    activities. (Eisenhardt and Tabrizi,1995)
  • Porter(1986) argue that partnerships and
    collaborations are a more rapid means of
    competitive repositioning than internal
    development, and are less costly and more
    flexible than mergers.

9
Literature review
  • In Gupta and Souder (1998), short cycle time
    companies were found to extensively involve
    customers in their RD process, test new product
    in the user facility during the development
  • Mullins and Sutherland (1998) identified customer
    involvement is one of the six practices that help
    the firm address the uncertainty risk inherent in
    its rapidly changing markets.
  • Dickson et al.(1995) found that the involvement
    of customer and supplier is an important skills
    for many successful, high-growth firms.
  • Handfield et al.(1999) found that supplier
    participation would lead to greater technological
    improvements.

10
Literature review
  • Through comparison of most successful and least
    successful efforts of supplier integration in
    NPD, Ragatz et al.(1997) found linked information
    system is a significant factor to distinguish the
    difference.
  • Koufteros et al.(2005) verified that involvement
    of customer and supplier would increase the
    ability of firms to introduce new products and
    features
  • Tracy (2004) found that involvement of customer
    and supplier had a positive effect on
    manufacturing agility.

11
Literature review
  • Advanced manufacturing technology is looked as
    technological innovation in some research. It is
    divided into three dimensions design,
    manufacturing and administrative according to
    which area the innovative technology is applied.
    (Boyer Pagell,2000)
  • Dixon et al.(1990) consider the flexibility as
    associated to quality, product, service and cost.
    The two flexibility dimensions related to product
    are new product flexibility and modification
    flexibility.

12
Hypothesis I
  • Hypothesis 1 The manufacturers are more likely
    to adopt AMT when there are more supplier
    involvement in NPD.
  • Hypothesis 2 The manufacturers are more likely
    to adopt AMT when there are more customer
    involvement in NPD.
  • Hypothesis 3 The manufacturers will have higher
    manufacturing flexibility when there are more
    supplier involvement in NPD.
  • Hypothesis 4 The manufacturers will have higher
    manufacturing flexibility when there are more
    customer involvement in NPD.

13
Literature review
  • Ittner and Larcker (1997) revealed that use of
    cross-functional teams and advanced design tools
    enhance the performance effect of accelerated
    product development.
  • Manufacturing technology (CIM,FMS,CAD/CAM)
    provided the ability to implement flexible,
    modular production set ups and rapid changeover
    of tools used in production process. (Hitt et
    al.,1998)
  • Das and Elango(1995) suggested that manufacturing
    flexibility was one of internal factors which
    would influence strategic flexibility. Also Toni
    and Tonchia (2005) found a cause-effect link
    between manufacturing flexibility and strategic
    flexibility.

14
Literature review
  • From conceptual analysis, Johnson et al. (2003)
    believed that operational flexibility did not
    necessarily result in market-focused strategic
    flexibility.
  • Hitt et al. (1998) suggested that the effective
    use of new technology would have positive impact
    on strategic flexibility.
  • New information technologies and modular product
    design methodology have positive impact on
    resources flexibility and four managerial
    innovations caused by them may increase a firms
    coordination flexibility (Sanchez,1995)

15
Hypothesis II
  • Hypothesis 5 The manufacturers will have higher
    manufacturing flexibility when they adopt more
    AMT in NPD.
  • Hypothesis 6 The manufacturers will have higher
    strategic flexibility when they have higher
    manufacturing flexibility.
  • Hypothesis 7 The manufacturers will have higher
    strategic flexibility when they adopt more AMT
    in NPD.

16
Literature review
  • Strategic flexibility have a positive influence
    on firm performance after the Asian crisis,
    especially in environments with high competitive
    intensity. (Grewal Tansuhaj,2001)
  • In the research of strategic flexibility and
    supply chain management, firm performance is
    usually measured by firm financial performance.
    Johnson et al.(2003) use short-term and long-term
    financial performance in their strategic
    flexibility research.
  • In Das Elango (1995)s case study, they
    suggested the disadvantage in cost of strategic
    flexibility.

17
Hypothesis III
  • Hypothesis 8a The manufacturers will have higher
    long-term financial performance when they have
    higher strategic flexibility.
  • Hypothesis 8a The manufacturers will have lower
    short-term financial performance when they have
    higher strategic flexibility.

18
Conceptualization
  • Three types of flexibility in firm (strategic,
    tactical and operational)
  • Defined by three types of environmental change
    (Eppink,1978)
  • Defined by three level of decision level
    (Johnson et al.,2003)
  • Defined by planning horizon (Fredericks,2005)
  • Intentional dimensions (Evans 1991)
  • Proactive and reactive

19
Conceptualization
  • Strategic flexibility is firms intent and
    capability to identify major changes in the
    external environments, to create option bundles
    of product development resources, and to ensure
    the sustained competitive advantage of the firm.
    (modified from Shimiza and Hitt,2004Johnson et
    al.,2003)

20
Measurement
Raynor and Leroux,2004 (Deloitte Research)
21
Measurement
investment
Core option
investment
Contingent option
firm level
investment
Core option
investment
Contingent option
Functional level
technology
Product development
production
distribution
.
22
Measurement
  • The number of firms investment in existing
    option bundles of core and contingent products
  • The time firm need to change between existing
    option bundles of core and contingent products
  • The cost firm need to change between existing
    option bundles of core and contingent products
  • The extent to which the firms intent to invest
    on new option bundles of core and contingent
    products
  • The extent to which the firms ability to balance
    well of the option bundles of core and contingent
    products

23
Measurement
Sanchez,1995
Johnson et al.,2003
Managers intent and behavior to generate option
bundles Managers impressions of the extent to
which product development options exist in
various project,their various forms,and their
preference for projects,that generate
option Extent to which holding options are valued.
24
Methodology
  • SEM will be used.
  • Population is manufacturing firm in high
    technology industry (computer, consumer
    electronics, communications)

25
Expected results
  • The involvement of supplier and customer will be
    beneficial to firms AMT adoption and
    flexibility.
  • The involvement of supplier and customer will
    influence firms strategic flexibility through
    mediating effect of innovation and manufacturing
    flexibility.
  • The improvement on firms strategic flexibility
    will lead to better long-term financial
    performance

26
Thanks
Q A
About PowerShow.com