Enterprise resource planning (ERP) systems have a controversial reputation. Critics say that even if ERP systems may be beneficial for organizations operating in stable conditions, they are surely detrimental to organizations that face dynamic market requirements. This is because ERP systems are said to impose such procedures and constraints on organizations that make business processes inflexible to change. In contrast, proponents argue that the information-processing capabilities of ERP systems are crucial for organizations that face dynamic market requirements and also that the criticized procedures and constraints actually support process reengineering. These two contradictory arguments are often found in practitioner literature, but both of them can also be supported by management theory. The central tenets of the Organic Theory of organization design imply that ERP systems should be detrimental when market requirements change frequently, whereas the principles of Rigid Flexibility Theory suggest that they should be advantageous. In this study, we use cross-sectional data from 151 manufacturing plants to determine which argument is more applicable in the context of manufacturing planning and control. The results strongly favor the use of ERP systems under dynamic market requirements. To facilitate the reconciliation of the two contradictory arguments, we discuss how the results may have been influenced by two contextual factors: the predominantly technical nature of the studied organizational system and the tight interdependence of the studied activities.

a b s t r a c tAlthough the reliability of production plans is crucial for the performance of manufacturing organizations, most practitioners use considerably simpler planning methods than what is recommended in the operations management literature. This article employs the contingency theory of organizations to explain the gap between the practice and the academic models of production planning. Arguments on the contingency effects of process complexity lead to a hypothesis that expects simple capacity planning methods to be most effective in certain production processes. A strong inference research setting is used to test the contingency hypothesis against a conventional hypothesis that expects the most sophisticated planning techniques to always be most effective. Multisource data from the machinery manufacturing industry support the contingency hypothesis and reject the universalistic hypothesis. The findings are explained using the concepts of task interdependence and bounded rationality. The results have several managerial implications, and they elaborate how classic concepts in organization theory can bring practically relevant insights to operations management research.

Manufacturers can reduce the occurrence of glitches in their operations by building capabilities to prevent them, yet mitigation capabilities are also needed to contain the effects of the glitches that will still inevitably occur every now and then. We examine the glitch mitigation capability of a production process from an information-processing perspective and propose that (i) the impact of operational glitches on delivery performance is contingent on the formalization of intrafirm communication channels and (ii) this effect is stronger when formal communication channels are complemented with informal channels. We test our model in a sample of 163 make-to-order production processes and find support for the first hypothesis and partial support for the second hypothesis. The statistical analyses also reveal nonhypothesized empirical regularities, which we explore through an additional qualitative study based on 34 site visits and 30 interviews with production planners. The results have practical implications for the design of intraorganizational communication channels, and they also contribute to the research on organizational resilience and communications by showing that when coping with disruptions, the formal communication channels have advantages that are seldom discussed in the literature or recognized by practitioners.

Access to this document was granted through an Emerald subscription provided by 405387 [] For AuthorsIf you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The product-process matrix of Hayes and Wheelwright is widely known for its prescriptive managerial guidance. Yet, most empirical studies have found no support for its performance assertions or have even contradicted them. The purpose of this paper is to propose a contingency theoretical generalization and extension that accommodates both the performance implications of the original model and the best-known departures from it. Design/methodology/approach -The authors test their extended model with survey data from 151 manufacturing plants.Findings -The authors' model extends the process dimension of the original model into a specificity dimension that depends not only on the layout of the process but also on the flexibilities that can be achieved with advanced manufacturing technologies. Similarly, the product dimension, which was operationalized as product variety in the original matrix, is generalized to the complexity of the production task, where product variety is only one element among others. Furthermore, the authors extend the model to accommodate also the dynamism of the task environment. Research limitations/implications -In addition to the testing of the extended model, the study provides openings for further theoretical development. In particular, the findings demonstrate the value of the contingency theoretical concept of suboptimal equifinality to operations management research. Practical implications -The study updates the product-process matrix to match the modern industrial reality and thus enables the continued application of this important operations strategy prescription.Originality/value -The study integrates insights from previous research in operations management and contingency theory into a generalization and extension of the product-process matrix.

Make-to-order (MTO) products may be either customized or standard, and customization can occur either at the configuration or component level. Consequently, MTO production processes can be divided into three customization gestalts: non-customizers, custom assemblers, and custom producers. In this article, we examine how the multilevel nature of customization affects order management in processes that produce complex MTO products. We first empirically validate the existence of the three customization gestalts and subsequently, analyze the order management challenges and solutions in each gestalt in a sample of 163 MTO production processes embedded in seven different supply chains. In the analyses, we follow a mixed-methods approach, combining a quantitative survey with qualitative interview data. The results show that important contingencies make different order management practices effective in different gestalts. Further qualitative inquiry reveals that some seemingly old-fashioned practices, such as available-topromise verifications, are effective but commonly neglected in many organizations. The results also challenge some of the conventional wisdom about custom assembly (and indirectly, mass customization). For example, the systematic configuration management methods-conventionally associated with project business environments-appear to be equally important in custom assembly.