Operational Capabilities as One of the Preconditions for Presence in the Global Supply Network of the Autoparts Industry; A Multi-case AnalysisOperations Capabilities as One of the Preconditions to Join Global Supply Network of Autoparts Industry: A Multiple Case Analysis

Document Type : Research Paper

Authors

1 Ph.D. Candidate of Industrial Management, Department of Management and Accounting, Allameh Tabataba'i University, Tehran, Iran.

2 Faculty Member, Department of Management and Accounting, Allameh Tabataba'i University, Tehran, Iran.

3 Faculty Member, University Complex of Management and Industrial Engineering, Malek Ashtar University of Technology, Tehran, Iran.

Abstract

The cooperation of any industrial production network with foreign partners, more than competitiveness, depends on their operational capabilities. This article sought to answer two questions choosing a qualitative-exploratory approach; what are the operational capabilities to join the global production network, and, what is the structure of operational capabilities? Data collection sources include autoparts industry experts who were selected in a judgmental and purposeful manner; 3 firms were chosen based on their presence in the global supply network. Data analysis was performed using thematic analysis. The case studies have been analyzed from the establishment to the present situation to identify operational capabilities related to the requirements of global automakers. The results are presented narratively so that the case studies lead to new theorems. Based on the results, operations continuity skills are labeled as operational routines, and growth and development skills are labeled as search routines. Routines are divided into categories of capabilities which lead to the deepening of routines through the learning process. Improvement capabilities include continuous improvement, management commitment to quality, and process management. Also, Growth and development-related innovation capabilities include multifunctional product design, equipment and process development, and the search for new technologies.

Keywords

Main Subjects


-          Abell, P., Teppo, F., Felin, T., & Foss, N. (2008). Building micro-foundations for the routines, capabilities, and performance links. Managerial and Decision Economics29(6), 489–502. https://doi.org/10.1002/mde.1413
-          Bartlett, C. A., & Ghoshal, S. (1988). Organizing for worldwide effectiveness: The transnational solution. California Management Review31(1), 54-74. https://doi.org/10.2307/41166538 
-          Becker, M. C. (2004). Organizational routines: A review of the literature. Industrial and Corporate Change13(4), 643–678. https://doi.org/10.1093/icc/dth026
-          Coleman, J. S. (1994). Foundations of Social Theory. Belknap Press of Harvard University Press. https://books.google.nl/books?id=a4Dl8tiX4b8C
-          Dicken, P. (2007). Global shift: Mapping the changing contours of the world economy. The Guildford Press.
-          Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review14(4), 532–550. https://doi.org/10.5465/AMR.1989.4308385
-          Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they? Strategic Management Journal21(10‐11), 1105–1121. https://doi.org/10.1002/1097-0266(200010/11)21:10/11<1105::aid-smj133>3.0.co;2-e 
-          ESCAP. (2009). Globalization of production and the competitiveness of small and medium-sized enterprises in Asia and the Pacific: Trends and prospects. United Nations. http://www.africres.org/SMME%20Research/SMME%20Research%20General/Reports/Globalization%20and%20competitiveness%20of%20SMEs.pdf
-          Felin, T., & Foss, N. J. (2004). Organizational routines: A sceptical look (DRUID Working Paper No 04-13). Danish Research Unit for Industrial. https://wp.druid.dk/wp/20040013.pdf
-          Felin, T., & Foss, N. J. (2009). Organizational routines and capabilities: Historical drift and a course-correction toward microfoundations. Scandinavian Journal of Management25(2), 157–167. https://doi.org/10.1016/j.scaman.2009.02.003
-          Ferdows, K., & De Meyer, A. (1990). Lasting improvements in manufacturing performance: In search of a new theory. Journal of Operations Management9(2), 168–184. https://doi.org/10.1016/0272-6963(90)90094-T
-          Garvin, David A. (1988). Managing Quality: The Strategic and Competitive Edge. Free Press.
-          Ghosh, A. (2001). Does operating performance really improve following corporate acquisitions? Journal of Corporate Finance7(2), 151-178. https://doi.org/10.1016/s0929-1199(01)00018-9 
-          Grant, R. M. (2010). Contemporary strategy analysis: Text & cases. Wiley.
-          Hayes, R. B., & Jaikumar, R. (1988). Manufacturing’s crisis: New technologies, obsolete organizations. Harvard Business Review66(5), 77-85. https://hbr.org/1988/09/manufacturings-crisis-new-technologies-obsolete-organizations
-          Henderson, R. M., & Clark, K. B. (1990). Architectural innovation: The reconfiguration of existing product technologies and the failure of established firms. Administrative Science Quarterly35(1), 9–30. https://doi.org/10.2307/2393549
-          King, N. (2012). Doing template analysis. In G. Symon, & C. Cassell (Eds.), Qualitative organizational research: Core methods and current challenges (pp. 426-450). Sage. https://doi.org/10.4135/9781526435620.n24 
-          Landis, J. R., & Koch, G. G. (1977). The Measurement of observer agreement for categorical data. Biometrics33(1), 159–174. https://doi.org/10.2307/2529310
-          Leonard-barton, D. (1992). Core capabilities and core rigities: A paradox in managing new product development. Strategic Management Journal13, 111–125. https://doi.org/10.1002/smj.4250131009
-          Levitt, B., & March, J. G. (1988). Organizational Learning. Annual Review of Sociology14(1), 319–338. https://doi.org/10.1146/annurev.so.14.080188.001535
-          Pauwels, P. and Matthyssens, P. (2004), Strategic flexibility in export expansion: growing through withdrawal. International Marketing Review, 21(4/5), 496-510. https://doi.org/10.1108/02651330410547162
-          Prahalad, C. K., & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review68(3), 79-91. Retrieved from https://hbr.org/1990/05/the-core-competence-of-the-corporation
-          Reinhardt, R., Gurtner, S., & Griffin, A. (2018). Towards an adaptive framework of low-end innovation capability–A systematic review and multiple case study analysis. Long Range Planning51(5), 770-796. https://doi.org/10.1016/j.lrp.2018.01.004 
-          Schroeder, R. G., Bates, K. A., & Junttila, M. A. (2002). A resource-based view of manufacturing strategy and the relationship to manufacturing performance. Strategic Management Journal, 23(2), 105–117. https://doi.org/10.1002/smj.213 
-          Stalk, G. (1988). Time-The Next Source of Competitive Advantage. Harvard Business Review. Retrieved from https://hbr.org/1988/07/time-the-next-source-of-competitive-advantage
-          Sturgeon, T. J., & Van Biesebroeck, J. (2011). Global value chains in the automotive industry: An enhanced role for developing countries? International Journal of Technological Learning, Innovation and Development4(1), 181–205. https://doi.org/10.1504/IJTLID.2011.041904
-          Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal18(7), 509-533. https://doi.org/10.1002/(sici)1097-0266(199708)18:7<509::aid-smj882>3.0.co;2-z 
-          Veloso, F., & Kumar, R. (2002). The automotive supply chain: Global trends and Asian perspectives (Erd Working Paper Series No. 3). Economics and Research Department. Asian Development Bank. https://www.adb.org/sites/default/files/publication/28439/wp003.pdf
-          Vickery, S. K., Droge, C., & Markland, R. E. (1993). Production competence and business strategy: Do they affect business performance?. Decision Sciences24(2), 435-456. https://doi.org/10.1111/j.1540-5915.1993.tb00482.x 
-          Voss, C.A., Tsikriktsis, N., Frohlich, M., (2002). Case research in operations management. International Journal of Operations & Production Management, 22(2), 195–219.
-          White, G. P. (1996). A meta-analysis model of manufacturing capabilities. Journal of Operations Management14(4), 315–331. https://doi.org/10.1016/S0272-6963(96)00096-4
-          Winter, Sidney G. (2003). Understanding dynamic capabilities. Strategic Management Journal, 24(10), 991–995. https://doi.org/10.1002/smj.318
-          WTO/IDE-JETRO. (2011). Trade patterns and global value chains in East Asia: From trade in goods to trade in tasks. WTO, Geneva/IDE-JETRO. https://doi.org/10.30875/6a810f38-en 
-          Yin, R. K. (2017). Case study research: Design and methods. Sage. https://doi.org/10.3138/cjpe.30.1.108