Manufacturing Audit in the Process of Strategy Formulation

Sustainable development through corporate social responsibility adoption and its drivers: evidence from corporate industrial sector

Corporate social responsibility (CSR) is a vital strategy for promoting firms' sustainable development goals, encompassing social, environmental, and economic factors. In emerging economies, manufacturing firms face mounting challenges in ensuring their sustainability. This study aims to identify the key drivers of CSR and examine their impact on CSR adoption in the manufacturing industry of Pakistan. The study employs the survey method to collect data, utilizing a one-to-one interview approach with a matrix-style questionnaire administered to a panel of experts selected through purposive sampling technique. Interpretive structural modeling (ISM) combined with Matrices' Impacts Cruise's Multiplication Appliquée a UN Classement (MICMAC) and structural equation model (SEM) are used for data assessment, modeling, and analysis. The findings indicate that compliance with government regulations and stakeholders' pressure are the essential drivers of CSR adoption and positively influence CSR adoption. Consequently, firms should consider adopting CSR strategies to enhance their sustainability based on the outcomes of this analysis.

Mapping Interactions among Green Innovations Barriers in Manufacturing Industry Using Hybrid Methodology: Insights from a Developing Country

Recent years have witnessed continuous rise in adopting green innovations which is considered as an important organizational instrument to achieve profits by reducing environmental deterioration. However, green innovation in developing countries, especially in Pakistan, is surprisingly scant as compared to developed countries. This paper empirically investigated obstacles to green innovations in Pakistani manufacturing firms. Specifically, a novel three phase methodological framework was applied to investigate significant barriers and filtration by integrating Delphi method (DM), interpretive structural modeling (ISM), and cross-impact matrix multiplication applied to classification (MICMAC). Our results highlighted that lack of enforceable laws regarding returned goods and recycled products, lack of rules and regulations for green practices, and lack of collaboration with government and environmental institutions are most critical barriers. However, fear of failure about green innovation is least important barriers to green innovations adoption. This study offers interesting clues to promote green innovation in manufacturing industry.

Improving productivity through strategic alignment of competitive capabilities

Purpose

The purpose of this paper is to investigate the productivity performance at the firm level from the perspective of manufacturing capability development at the process level. Moreover, it reveals how alignment of manufacturing capabilities with market requirements has influenced a firm’s productivity over a period that includes the 2008 global recession.

Design/methodology/approach

A conceptual framework was derived from established theories and employed as part of a case study design encompassing a multiple methods research approach. The case of a UK SME was selected to reflect some of the issues associated with the wider productivity stagnation experienced by the UK economy in recent years.

Findings

The firm’s manufacturing strategy had become incrementally misaligned with market requirements due to external changes in its business environment. The complex relationships between capabilities such as quality, speed and cost were characterised. Realigning the firm’s manufacturing strategy to regain productivity performance required a range of prioritised actions including capital investment and changes in management practices concerning bottom-up process improvement and regular, top-down strategy review.

Research limitations/implications

The findings of the case study cannot be generalised and the outcomes are specific to just one firm. However, the approach lends itself to replication, particularly within SMEs.

Originality/value

Prior studies have focussed on capability development at higher levels of abstraction. The study operationalized established theoretical perspectives at the firm level to derive context-based outcomes that can be used to improve manufacturing strategy alignment and productivity. Furthermore, the study contributes empirical evidence from the SME sector to the ongoing debate regarding the UK’s productivity puzzle.

Themes of study in manufacturing strategy literature

Purpose

– A literature review within the manufacturing strategy (MS) discipline with a focus on thematic developments is provided. Based on recent studies, a set of challenges posed to manufacturing enterprise of the future are summarized, and thematic areas are analyzed in relation to meeting those challenges. The paper aims to discuss these issues.

Design/methodology/approach

– Based on a select set of 506 articles published in top-ranked refereed international journals in the discipline of operations management, major and subthemes are identified and the publication trends in these themes are provided with time and across geographical regions, namely: North America, Europe, and other parts of the world.

Findings

– MS literature is predominantly focussed on the economic objectives of firms without a due focus on the social and environmental perspectives. MS literature covers 11 major thematic areas, namely: MS components and paradigms, manufacturing capabilities (MCs), strategic choices (SCs), best practices (BPs), the strategy process (SP), supply-chain management (SCM), performance measurement, transnational comparisons, global manufacturing, environmental/green manufacturing, and literature reviews. The research in two areas – SCs, and MCs – has been in decline, while the research in BPs, the SP, and transnational comparisons is growing (in absolute figures). Various research opportunities for future studies are identified.

Research limitations/implications

– The literature review is limited in its selection of articles and journals, however, the identified trends clarify the state of research by the MS research community at large.

Practical implications

– For researchers, multiple new research directions are identified in order to advance knowledge in the field of MS. The publication trends also highlight thematic areas where most of the MS body of knowledge is currently available and can be utilized by practitioners.

Originality/value

– The paper’s novelty comes from: first, a broader and deeper review of thematic areas that has not been researched before, second, trends in thematic areas by time, across geographical regions, and including time-region dyads, and third, coverage provided by MS literature in meeting challenges posed to manufacturing enterprise of the future.

O processo de formação de estratégias de manufatura em empresas brasileiras de médio e pequeno porte

A presente pesquisa é uma investigação exploratória, com o objetivo de melhor entender os processos de formação da estratégia de manufatura nas empresas brasileiras de médio e pequeno porte. Desenvolve-se uma matriz para o auxílio da tipificação e análise dos processos de formação de estratégias de manufatura, com uma dimensão representando o sentido predominante do processo (top-down ou bottom-up) e a outra, a consideração ou não da existência de trade-offs entre critérios de desempenho no processo de formação das estratégias de manufatura. Essa matriz é então aplicada na análise em profundidade de quatro estudos de caso de empresas brasileiras de médio porte. Conclusões são tiradas sobre como as empresas pesquisadas formam suas estratégias de operação em termos de (a) definição de prioridades competitivas; (b) estabelecimento de objetivos de desempenho para a manufatura; (c) priorização de programas de melhoramentos da manufatura; e (d) definição dos indicadores de eficácia da manufatura. É também proposta, entre outras, hipótese de existência de correlação entre os processos bottom-up de formação das estratégias e a contribuição da manufatura na competitividade da empresa.

An empirical framework for selecting quality management and improvement initiatives

Purpose

A growing number of publications have questioned and raised awareness of improvement fashions, especially in the area of quality management (QM), but rational decision‐making process has been promoted. Thus, this paper aims to address the selection issue and presents a holistic framework for selecting a QM and improvement initiative.

Design/methodology/approach

The research was carried out in three phases. Phase One established a conceptual background for the adoption based on extensive literature review. Phase Two provided empirical studies of the QM approaches adopted in three leading case companies in Thailand and interviews with quality experts. Finally, Phase Three builds a theory of selection based on cross‐case analysis and a paradigm model.

Findings

Triggers for the adoption are the internal factors (i.e. need to survive, sustain competitiveness, and increase operational effectiveness) and external factors (i.e. institutional push, trade barrier, and company image). The selection framework and the theory of selecting QM and improvement initiatives explain the four selection views of fashion setting, pay‐off, strategic fit, and organisation fit.

Research limitations/implications

Selection of quality and improvement initiatives is based on the managers' perceptions and past experiences of QM selecting decision, and upon on the information available.

Originality/value

The advancement in the theory of the adoption of improvement initiatives is the main contribution of this research. The selection framework, which was theoretically and empirically grounded, has attempted to surface the irrational influences on the adoption to provide a more rational and less ambiguous justification. It provides a holistic model incorporating comprehensive selection criteria aiming to assist managers undertaking selection decisions.

Pay‐off selection criteria for quality and improvement initiatives

Purpose

The variety of possible quality management (QM) and continuous improvement (CI) initiatives and their various possible permutations can make it difficult for a company to choose the best approach for their requirements. This paper aims to address the selection issue by presenting a method to compare popular QM and CI initiatives from the perspective of the pay‐offs, or expected benefits, to an organisation which successfully adopts the approach.

Design/methodology/approach

The relevant QM and CI literature was analysed, examining key initiatives and their reported pay‐offs to the organisation. A matrix diagram approach is introduced which presents the extent and credibility of arguments advanced for these initiatives, in seven categories of pay‐off. A system of assessment is proposed, which quantifies the extent and weight of empirical evidence and estimates the strength of the claim for each pay‐off.

Findings

The pay‐off matrix summarises the claims in each of the pay‐off categories, assesses their credibility, and displays the similarities and differences for six key initiatives: total quality management, six sigma, ISO 9000, business process reengineering, lean and business excellence. Graphical pay‐off profiles are presented. Significant differences between the claimed pay‐offs for these initiatives are identified, analysed and discussed.

Research limitations/implications

The proposed matrix and assessment system attempts to support a comprehensive and rational approach to assess the pay‐offs of QM and CI initiatives. As with any analysis of literature, there is inevitably an element of selection, but this approach consciously attempts to avoid omission and promote objectivity. The analysis is based on articles published between 1990 and 2005. Hence, new research and additional evidence may change the weight and credibility of claims.

Originality/value

This paper suggests a way in which evidence from the literature might be most effectively used by managers for decision support in the choice of quality and improvement initiatives. A similar approach might also be used for other areas, where businesses face choices and a considerable body of evidence exists to assist the decision‐making process.