Micro foundations of strategic capability development : a case study within the auto industry

The importance of firms’ adaptation processes is prominent in today’s business environment which is characterised by ever changing customers, technologies, and competition. Ever since Schumpeter’s (1942) classic work strategic renewal has been found crucial for firms’ adaptation to environmental change. The role of strategic renewal in firms’ adaptation processes includes development of capabilities for the purpose of sustainability of competitive advantage against environmental changes.

The market for wood pallets in the auto industry : a case study of Ford Motor Company /

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Dress- and Auto- Makers in the “Free Trade” Arena

Even though there have been many studies on the impact of trade liberalisation on labour standards, most of the studies are at national level, and there is a lack of research at industry level. This paper examines the impact of free trade on labour standards in capital- and labour-intensive industries in a developing country. For empirical findings, I take the case of the garment industry, representing labour-intensive industry, and automotive industry, representing capital-intensive industry, in Indonesia in the face of ASEAN Free Trade Area (AFTA). Since the garment industry is a women-dominated industry, while the automotive industry is a men-dominated industry, this paper also employs a feminist perspective. As such, this paper also investigates whether free trade equally affects men and women workers. Besides free trade, other independent variables are also taken into account. Employing quantitative and qualitative methods, empirical evidence shows that there is an indication that free trade has a negative relationship with labour standards in the garment industry, whereas a positive relationships with labour standards in the automotive industry. This implies that free trade might result in decreasing labour standards in labour-intensive industry, while increasing standards in capital-intensive industry. It can also be inferred that free trade unequally affect men and women workers, in that women workers bear the brunt of free trade. The results also show that other internal and external independent variables are indicated to have relationships with labour standards in the garment and automotive industries. Therefore, these variables need to be considered in examining the extent of the impact of free trade on labour standards in labour- and capital-intensive industries.

A micro perspective analysis of capability renewal through knowledge integration within product innovation projects

The aim of this paper is examine how firms renew their organisational capabilities based on micro organisational processes. Organisational capability development literature points to firms’ failure in capability renewal process. To overcome this inefficiency, it is proposed to integrate dynamic capability and ambidexterity perspectives by studying knowledge integration within product innovation. In this relation, applying micro perspective in studying technology diffusion within Iranian Auto industry revealed micro co-evolutionary relationships between knowledge integration within product innovation and capability development. Furthermore, based on near decomposability principals, the analysis suggested relationships among modularity of product architecture, modularity of organisational modularity and modularity of industry architecture in downstream and upstream value chain. Based on these micro-macro co evolutionary effects, capability development process underlying successful corporate entrepreneurship may be verified.

Strategic capability development : a multi-level case study of the role of knowledge integration within product innovation

Capability development is at the heart of creating competitive advantage. This thesis intends to conceptualise Strategic Capability Development as a renewal of an organisation's existing capability in line with the requirements of the market. It followed and compared four product innovation projects within Iran Khodro Company (IKCO), an exemplar of capability development within the Iranian Auto industry. Findings show that the maturation of strategic capability at the organisational level has occurred through a sequence of product innovation projects and by dynamically shaping the learning and knowledge integration processes in accordance with emergence of the new structure within the industry. Accordingly, Strategic Capability Development is conceptualised in an interpretive model. Such findings are useful for development of an explanatory model and a practical capability development framework for managing learning and knowledge across different product innovation projects.

An empirical study of capability development within product innovation projects

The objective of this paper is to develop insights into firms’ strategic capability development processes within product innovation projects. In particular, the research aims at investigating the interactions among product innovation, knowledge processes, and capability development within firms. Building on qualitative data from the auto-industry, our analysis reveals that across four product innovation projects, the case company developed architectural knowledge and capability. Findings reveal that, along with changes at each level of product architecture, “design knowledge” and “design capability” have been developed at the same level of product architecture, leading to capability development at that level. Furthermore, findings suggest that such capability transformation resulting from knowledge and capability creation over the course of case projects leads to modularization of product architecture. Overall, the research contributes to identifying and emphasizing the role of micro processes in capability development and renewal, which in turn enhances our understanding of strategic capability development processes.

The role of knowledge integration in innovation and capability development

Purpose This paper investigates the interrelationships between knowledge integration (KI), product innovation and capability development to enhance our understanding of how firms can develop capability at the firm level, which in turn enhances their performance. One of the critical underlying mechanisms for capability building identified in the literature is the role of knowledge integration, which operates within product innovation projects and contributes to dynamic capability development. Therefore, the main research question is “how does the integration of knowledge across product innovation projects lead to the development of capability?” Design/methodology/approach We adopted a case-based approach and investigated the case of a successful firm that was able to sustain its performance through a series of product innovation projects. In particular this research focused on the role of KI and firm-level capability development over the course of four projects, during which the firm successfully managed the transformation of its product base and renewal of its competitive advantage. For this purpose an in-depth case study of capability development was undertaken at the Iran Khodro Company (IKCO), the key player in the Iranian auto industry transformation. Originality/value This research revealed that along with changes at each level of product architecture “design knowledge” and “design capability” have been developed at the same level of product architecture, leading to capability development at that level. It can be argued that along the step by step maturation of radical innovation across the four case projects, architectural knowledge and capability have been developed at the case company, resulting in the gradual emergence of a modular product and capability architecture across different levels of product architecture. Such findings basically add to extensive emphasis in the literature on the interrelationship of the concept of modularity with knowledge management and capability development. Practical implications Findings of this study indicate that firms manage their knowledge in accordance with the level of specialization in knowledge and capability. Furthermore, firms design appropriate knowledge integration mechanisms within and among functions in order dynamically align knowledge processes at different levels of the product architecture. Accordingly, the outcomes of this study may guide practitioners in managing their knowledge processes, through dynamically employing knowledge integration modes step-by-step and from the part level to the architectural level of product architecture across a sequence of product innovation projects to encourage learning and radical innovation.

Sistemas de contabilidad de gestión y desempeño de joint ventures internacionales: rol positivo de la experiencia de los directivos

[ES] Este trabajo explora el rol de los sistemas de la contabilidad de gestión en el desempeño de Joint Ventures (JV) del tipo 50/50 en la industria autopartista. Se investiga el impacto que la experiencia previa de los directivos tiene sobre la intensidad y propósito de uso de los sistemas de la contabilidad de gestión y como ellos afectan el desempeño de JVs. El estudio de este fenómeno surge a partir de los resultados reportados en tres estudios de campo exploratorios en JVs (Groot y Merchant 2000) y de otros tres casos de JVs internacionales en la industria autopartista (Porporato 2013) en donde se sugieren que el efecto de los sistemas de control de gestión en el desempeño organizacional es secundario. Los resultados aquí reportados se basan en una encuesta efectuada a 35 JV internacionales y ofrece resultados alineados con la literatura existente. Los resultados muestran que el desempeño organizacional mejora cuando se reduce la incertidumbre de factores percibidos como controlables por los directivos; un factor se percibe como controlable cuando mayor es la experiencia que el directivo tiene con el mismo. La incertidumbre, según la define Galbraith (1973), se reduce vía un uso intensivo de los sistemas de contabilidad de gestión, lo que su vez impacta positivamente en el desempeño organizacional.

Análisis de los componentes de la cadena de suministro y su relación con el desempeño superior de la organización en el sector manufacturero

En este documento se evidencia como el desempeño organizacional de una empresa, entendido como el rendimiento superior de la misma, se ve modificado por las prácticas o metodologías utilizadas, aplicadas e integradas a cada uno de los componentes de la Cadena de suministros. Es así que el propósito principal es demostrar cual es la relación entre los componentes de la Cadena de Suministros y su gestión sobre los rendimientos económicos de la empresa. De esa manera se encontraron múltiples actividades que toman lugar en los procesos característicos de cada uno de los componentes de la cadena de suministros y que al final nos presentan una variabilidad sobre los rendimientos de la empresa. Cabe recalcar que la investigación se realizó con respecto a empresas pertenecientes al sector manufacturero y abarca una buena parte de este. La importancia que tiene la investigación, es el haber entregado como resultado, el conocimiento sobre algunas de las practicas más utilizadas en el sector en cada uno de sus componentes, lo cual hace de la Cadena de suministros, un factor por excelencia para ser tratado e implementado con el fin de alcanzar mayores rendimientos económicos a nivel de empresa. En la investigación se utilizaron los casos de empresas reales tanto nacionales como internacionales y se encontraron situaciones claves que evidenciaban la hipótesis de la relación entre la cadena de suministros y el desempeño organizacional. Es por ello, que si bien es ahora cierto, que las actividades desarrolladas en los componentes de la Cadena de Suministros de las empresas influyen en el incremento de los rendimientos, es importante que las empresas conozcan de esta información para tener una idea de cómo desarrollar ventajas competitivas que los posicionen como empresa y les genere entonces mayores rendimientos, o por el contrario, les genere ahorros en costos y por ende altos beneficios y nuevas inversiones en prácticas que a la larga volverá a la empresa en un organismo eficientes y próspero.

Quality change in Brazilian automobiles

In this paper I investigate the quality evolution ofBrazilian autos. To measure the quality evolution of Brazilian autos, I have assembled a data set for Brazilian passenger cars for the period 1960-1994, to which I have applied the hedonic pricing methodology. To the best of my k:nowledge, this is the first time an index of quality change has been constructed for the Brazilian automobile industry. The results presented here have two major implications. They allow a better -- ......... understanding of product innovation in Brazil's auto industry, and they provide a clearer explanation of the behavior of auto prices.