Capability matrix – Identifying and evaluating the key capabilities of purchasing and supply management

Organizations gain resources, skills and technologies to find out the ultimate mix of capabilities to be a winner in the competitive market. These are all important factors that need to be taken into account in organizations operating in today's business environment. So far, there are no significant studies on the organizational capabilities in the field of PSM. The literature review shows that the PSM capabilities need to be studied more comprehensively. This study attempts to reveal and fill this gap by providing the PSM capability matrix that identifies the key PSM capabilities approached from two angles: there are three primary PSM capabilities and nine subcapabilities and, moreover, the individual and organizational PSM capabilities are identified and evaluated. The former refers to the PSM capability matrix of this study which is based on the strategic and operative PSM capabilities that complement the economic ones, while the latter relates to the evaluation of the PSM capabilities, such as the buyer profiles of individual PSM capabilities and the PSMcapability map of the organizational ones. This is a constructive case study. The aim is to define what the purchasing and supply management capabilities are and how they can be evaluated. This study presents a PSM capability matrix to identify and evaluate the capabilities to define capability gaps by comparing the ideal level of PSM capabilities to the realized ones. The research questions are investigated with two case organizations. This study argues that PSM capabilities can be classified into three primary categories with nine sub-categories and, thus, a PSM capability matrix with four evaluation categories can be formed. The buyer profiles are moreover identified to reveal the PSM capability gap. The resource-based view (RBV) and dynamic capabilities view (DCV) are used to define the individual and organizational capabilities. The PSM literature is also used to define the capabilities. The key findings of this study are i) the PSM capability matrix to identify the PSM capabilities, ii) the evaluation of the capabilities to define PSM capability gaps and iii) the presentation of the buyer profiles to identify the individual PSM capabilities and to define the organizational PSM capabilities. Dynamic capabilities are also related to the PSM capability gap. If a gap is identified, the organization can renew their PSM capabilities and, thus, create mutual learning and increase their organizational capabilities. And only then, there is potential for dynamic capabilities. Based on this, the purchasing strategy, purchasing policy and procedures should be identified and implemented dynamically.

Landslide detection and monitoring capability of boat-based mobile laser scanning along Dieppe coastal cliffs, Normandy

Integrated in a wide research assessing destabilizing and triggering factors to model cliff dynamic along the Dieppe's shoreline in High Normandy, this study aims at testing boat-based mobile LiDAR capabilities by scanning 3D point clouds of the unstable coastal cliffs. Two acquisition campaigns were performed in September 2012 and September 2013, scanning (1) a 30-km-long shoreline and (2) the same test cliffs in different environmental conditions and device settings. The potentials of collected data for 3D modelling, change detection and landslide monitoring were afterward assessed. By scanning during favourable meteorological and marine conditions and close to the coast, mobile LiDAR devices are able to quickly scan a long shoreline with median point spacing up to 10cm. The acquired data are then sufficiently detailed to map geomorphological features smaller than 0.5m2. Furthermore, our capability to detect rockfalls and erosion deposits (>m3) is confirmed, since using the classical approach of computing differences between sequential acquisitions reveals many cliff collapses between Pourville and Quiberville and only sparse changes between Dieppe and Belleville-sur-Mer. These different change rates result from different rockfall susceptibilities. Finally, we also confirmed the capability of the boat-based mobile LiDAR technique to monitor single large changes, characterizing the Dieppe landslide geometry with two main active scarps, retrogression up to 40m and about 100,000m3 of eroded materials.

Does absorptive capacity determine collaborative research returns to innovation? A geographical dimension

This paper aims to estimate the impact of research collaboration with partners in different geographical areas on innovative performance. By using the Spanish Technological Innovation Panel, this study provides evidence that the benefits of research collaboration differ across different dimensions of the geography. We find that the impact of extra-European cooperation on innovation performance is larger than that of national and European cooperation, indicating that firms tend to benefit more from interaction with international partners as a way to access new technologies or specialized and novel knowledge that they are unable to find locally. We also find evidence of the positive role played by absorptive capacity, concluding that it implies a higher premium on the innovation returns to cooperation in the international case and mainly in the European one.

The role of alliance capabilities in alliance portfolio management

The question of why some firms perform better in managing their alliances has raised interest among scholars and managers. Whereas inter-firm factors influencing the alliance performance such as strategic fit between partners and the existence of complementarities have been studied extensively, research on firm-level antecedents is rather scarce. Therefore this study investigates the role of firm’s alliance capability in the alliance success equation. Particularly it analyses the specialized mechanisms and processes set up by firm in order to facilitate alliancerelated know-how leverage organization-wise. Evidence from a cross-industry sample of R&D intensive Finnish companies supports the fact that firms which have invested in institutionalizing alliance capabilities outperform their counterparts in alliance portfolio management. Results also suggest that firms need to adjust alliance management tools depending on the alliance portfolio size, prior experience with inter-firm partnerships and the strategic importance of alliances. Furthermore, absorptive capacity is found to be crucial for successful alliance management, its role being complementary to that of alliance capability. Finally, firms that have successful alliances also enjoy higher financial, market and innovation performance.

Improving Evaluation and Development Capability in Verification and Validation

Validation and verification operations encounter various challenges in product development process. Requirements for increasing the development cycle pace set new requests for component development process. Verification and validation usually represent the largest activities, up to 40 50 % of R&D resources utilized. This research studies validation and verification as part of case company's component development process. The target is to define framework that can be used in improvement of the validation and verification capability evaluation and development in display module development projects. Validation and verification definition and background is studied in this research. Additionally, theories such as project management, system, organisational learning and causality is studied. Framework and key findings of this research are presented. Feedback system according of the framework is defined and implemented to the case company. This research is divided to the theory and empirical parts. Theory part is conducted in literature review. Empirical part is done in case study. Constructive methode and design research methode are used in this research A framework for capability evaluation and development was defined and developed as result of this research. Key findings of this study were that double loop learning approach with validation and verification V+ model enables defining a feedback reporting solution. Additional results, some minor changes in validation and verification process were proposed. There are a few concerns expressed on the results on validity and reliability of this study. The most important one was the selected research method and the selected model itself. The final state can be normative, the researcher may set study results before the actual study and in the initial state, the researcher may describe expectations for the study. Finally reliability of this study, and validity of this work are studied.

Supplier relationship management capability in the firm's global integration

Organizing is a general problem for global firms. Firms are seeking a balance between responsiveness at the local level and efficiency through worldwide integration. In this, supply management is the focal point where external commercial supply market relations are connected with the firm's internal functions. Here, effective supplier relationship management (SRM) is essential. Global supply integration processes create new challenges for supply management professionals and new capabilities are required. Previous research has developed several models and tools for managers to manage and categorize different supplier relationship types, but the role of the firm's internal capability of managing supplier relationships in their global integration has been a clearly neglected issue. Hence, the main objective of this dissertation is to clarify how the capability of SRM may influence the firm's global competitiveness. This objective is divided into four research questions aiming to identify the elements of SRM capability, the internal factors of integration, the effect of SRM capability on strategy and how SRM capability is linked with global integration. The dissertation has two parts. The first part presents the theoretical approaches and practical implications from previous research and draws a synthesis on them. The second part comprises four empirical research papers addressing the research questions. Both qualitative and quantitative methods are utilized in this dissertation. The main contribution of this dissertation is that it aggregates the theoretical and conceptual perspectives applied to SRM research. Furthermore, given the lack of valid scales to measure capability, this study aimed to provide a foundation for an SRM capability scale by showing that the construct of SRM capability is formed of five separate elements. Moreover, SRM capability was found to be the enabler in efforts toward value chain integration. Finally, it was found that the effect of capability on global competitiveness is twofold: it reduces conflicts between responsiveness and integration, and it creates efficiency. Thus, by identifying and developing the firm's capabilities it is possible to improve performance, and hence, global competitiveness.

FEMA’s Capability Development After Katrina

After Action Reports for Hurricane Isaac & Sandy concluded that WebEOC was correct choice for FEMA’s Crisis Management System: real time data easily shared between FEMA Headquarters, Regions and Incident Management Assistance Teams; cloud capability allowed use on any web connected device, laptop, tablet, iPad, smart phone; intuitive System - Offgoing personnel able to train incoming reliefs on new features or changes within minutes; widespread use of WebEOC through out country in 19 other Federal Departments and Agencies, 40 States, hundreds of cities/counties and industry provided a number of users that had prior experience using WebEOC and reduced learning curve experienced when new systems are introduced; focusing on a single shared web database reduced creation of new single purpose databases, spreadsheets and share point sites allowing best practices to be captured, refined, shared and continued

Diagnosing and developing knowledge management capability –Knowledge management capability in UPM-Kymmene Wood Oy

The purpose of this case study is to clarify how KM (knowledge management) capability is constructed through six different activities and to explore how this capability can be diagnosed and developed in the three case organizations. The study examines the knowledge management capability of the three factories in UPM-Kymmene Wood Oy, a major Finnish plywood producer. Forest industry is usually considered to be quite hierarchical. The importance of leveraging employee skills and knowledge has been recognized in all types of organizations – including those that mainly deal with tangible resources. However, the largest part of empirical knowledge management literature examines KM in so called knowledge-intensive or knowledge-based organizations. This study extends existing literature by providing an in depth case study into assessment and development of KM activities in these three organizations with little awareness of the KM discourse. This subject is analyzed through literature review, theoretical analysis and empirical research in the case organizations. The study also presents a structured method for evaluating KM activities of a company and for diagnosing the main weaknesses that should be developed in order to achieve KM excellence. The results help in understanding how knowledge management capability is constructed and provide insight into developing and exploiting it within an organization.

Supply management capability

The objective of this thesis is to define supply management capability. The thesis study what factors consist of supply management capability, and which of those factors are critical to achieving competitive advantage. One objective is also to study how firms can measure their supply management capability. This study is a qualitative research. The thesis examines the literature regarding to supply management and the context of capability and there are used Delphi panel to examine the current and future insights of supply management professionals concerning of supply management skills and capability. The empirical data of the thesis was collected by interviews. The Delphi panel was used in data collection and analysis and for prioritization of the factors of supply management capability. The thesis includes lists of factors of supply management capability. Main findings of the study were that there is no one clear, generally suitable set of supply management skills which bring competitive advantage for all firms and the most important factors of supply management capability, according to the experts, are total cost analysis, customer focus, general business view, market knowledge and supplier relationships. In this study the supply management capability is defined as organization’s overall capacity and ability to achieve a holistic understanding of purchasing needs, manage its suppliers and collaborative partners, and conduct its internal tasks, routines and responsibilities in a way that achieves desired results. The results of this thesis show also that Finnish firms need more right kind of supply management knowledge.

Absorptive capacity of Multinational Corporation’s parent company

The objective of this paper is to contribute to the literature concerning absorptive capacity by revealing the factors affecting the absorptive capacity of MNC parent company toward subsidiary and most particularly the effects of intra-organizational antecedents. The theoretical framework is build around previous findings on knowledge sharing and absorptive capacity. The empirical part of the study is a qualitative research which includes in-depth interviews and analysis of secondary data based on a single case company. The results showed that organizational structure, internal communication, informal networks, formal networks, internationalization, human resources management, shared language, meetings, trust, participation in decision-making, level of awareness, IT system, level of adaptation to market specifications and job rotation influence parent company’s absorptive capacity. Moreover, related problems to these antecedents have been identified. Additionally, recommendations to solve these problems are formulated. In the end, directions for future research on this topic are given.

Strategic Airlift Capability (SAC) Puolustusvoimien kolmen päätehtävän näkökulmasta

Tutkimuksessa tarkasteltiin vuonna 2009 toimintansa käynnistävää kansainvälistä ilmakuljetusyhteistyöhankketta Strategic Airlift Capability (SAC) puolustusvoimien kolmen päätehtävän näkökulmasta. Strategic Airlift Capability on 10 Nato-maan sekä Ruotsin ja Suomen välinen yhteistyösopimus, jolla varmistetaan raskas ilmakuljetuskyky jäsenmaiden käyttöön seuraavaksi 26 vuodeksi. Raskas ilmakuljetuskyky tuotetaan kolmella SAC-järjestelyn jäsenmaiden yhteisesti omistamalla Boeing C-17 Globemaster III strategisella kuljetuslentokoneella. Tutkimuksen päätutkimuskysymys oli seuraava: Mitkä ovat keskeisimmät SAC-järjestelyn mahdollisuudet ja haasteet puolustusvoimien kolmen päätehtävän näkökulmasta ja mitä toimenpiteitä nämä edellyttävät puolustusvoimilta? Tutkimus oli luonteeltaan kvalitatiivinen. Tutkimusmenetelmänä käytettiin logistiikan tutkimukseen hyvin soveltuvaa abduktio-menetelmää, jossa teorian kehittäminen ja empiirisen tutkimusaineiston analysointi ja testaus vuorottelevat. Tutkimusasetelma oli hermeneuttinen. Tutkimusaineiston analysoinnissa käytettiin menetelmänä aineistopohjaista sisällönanalyysiä. Kahdella Delfoi-menetelmään perustuvalla kyselyllä selvitettiin puolustushallinnon sekä muiden hallinnonalojen ja siviilitoimijoiden näkemyksiä SAC-järjestelystä. Tutkimuksen yhtenä menetelmänä oli SWOT-analyysi.

Shewhart's control charts and process capability ratio applied to a sewage treatment station

The current study used statistical methods of quality control to evaluate the performance of a sewage treatment station. The concerned station is located in Cascavel city, Paraná State. The evaluated parameters were hydrogenionic potential, settleable solids, total suspended solids, chemical oxygen demand and biochemical oxygen demand in five days. Statistical analysis was performed through Shewhart control charts and process capability ratio. According to Shewhart charts, only the BOD(5.20) variable was under statistical control. Through capability ratios, we observed that except for pH the sewage treatment station is not capable to produce effluents under characteristics that fulfill specifications or standard launching required by environmental legislation.

Enhancing absorptive capacity in a non-research and development. An action research approach to converting individual observations into organisational awareness

The ability to recognize potential knowledge and convert it into business opportunities is one of the key factors of renewal in uncertain environments. This thesis examines absorptive capacity in the context of non-research and development innovation, with a primary focus on the social interaction that facilitates the absorption of knowledge. It proposes that everyone is and should be entitled to take part in the social interaction that shapes individual observations into innovations. Both innovation and absorptive capacity have been traditionally related to research and development departments and institutions. These innovations need to be adopted and adapted by others. This so-called waterfall model of innovations is only one aspect of new knowledge generation and innovation. In addition to this Science–Technology–Innovation perspective, more attention has been recently paid to the Doing–Using–Interacting mode of generating new knowledge and innovations. The amount of literature on absorptive capacity is vast, yet the concept is reified. The greater part of the literature links absorptive capacity to research and development departments. Some publications have focused on the nature of absorptive capacity in practice and the role of social interaction in enhancing it. Recent literature on absorptive capacity calls for studies that shed light on the relationship between individual absorptive capacity and organisational absorptive capacity. There has also been a call to examine absorptive capacity in non-research and development environments. Drawing on the literature on employee-driven innovation and social capital, this thesis looks at how individual observations and ideas are converted into something that an organisation can use. The critical phases of absorptive capacity, during which the ideas of individuals are incorporated into a group context, are assimilation and transformation. These two phases are seen as complementary: whereas assimilation is the application of easy-to-accept knowledge, transformation challenges the current way of thinking. The two require distinct kinds of social interaction and practices. The results of this study can been crystallised thus: “Enhancing absorptive capacity in practicebased non-research and development context is to organise the optimal circumstances for social interaction. Every individual is a potential source of signals leading to innovations. The individual, thus, recognises opportunities and acquires signals. Through the social interaction processes of assimilation and transformation, these signals are processed into the organisation’s reality and language. The conditions of creative social capital facilitate the interplay between assimilation and transformation. An organisation that strives for employee-driven innovation gains the benefits of a broader surface for opportunity recognition and faster absorption.” If organisations and managers become more aware of the benefits of enhancing absorptive capacity in practice, they have reason to assign resources to those practices that facilitate the creation of absorptive capacity. By recognising the underlying social mechanisms and structural features that lead either to assimilation or transformation, it is easier to balance between renewal and effective operations.

Predictive Capability of HPV and Pap Tests in Screening for Cervical Cancer over a Three-Year Follow-up

Purpose To compare the predictive capability of HPV and Pap smear tests for screening pre-cancerous lesions of the cervix over a three-year follow-up, in a population of users of the Brazilian National Health System (SUS). Methods This is a retrospective cohort study of 2,032 women with satisfactory results for Pap smear and HPV tests using second-generation hybrid capture,made in a previous study. We followed them for 36 months with data obtained from medical records, the Cervix Cancer Information System (SISCOLO), and the Mortality Information System (SIM). The outcome was a histological diagnosis of cervical intraepithelial neoplasia grade 2 or more advanced lesions (CIN2ş). We constructed progression curves of the baseline test results for the period, using the Kaplan-Meier method, and estimated sensitivity, specificity, positive and negative predictive value, and positive and negative likelihood ratios for each test. Results A total of 1,440 women had at least one test during follow-up. Progression curves of the baseline test results indicated differences in capability to detect CIN2ş (p < 0.001) with significantly greater capability when both tests were abnormal, followed by only a positive HPV test. The HPV test was more sensitive than the Pap smear (88.7% and 73.6%, respectively; p < 0.05) and had a better negative likelihood ratio (0.13 and 0.30, respectively). Specificity and positive likelihood ratio of the tests were similar. Conclusions These findings corroborate the importance of HPV test as a primary cervical cancer screening.