Strategic and operational considerations for the Extended Enterprise: insights from the aerospace industry

Braziotis, Christos; Tannock, J. D. T.; Bourlakis, Michael

doi:10.1080/09537287.2016.1268274

Cited by 17 publications

(13 citation statements)

References 75 publications

(76 reference statements)

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“…It is not uncommon for such industries to require 'low-volume high-variability' manufacturing capabilities in order to produce extensively customized products, such as bespoke aircraft, and cope improves collaboration among the partners (Braziotis et al, 2017). In most of this research, trust was cited as being crucial for developing inter-organisational relationships in the aerospace industry (Varoutsa & Scapens, 2012).…”

Section: Research Gapmentioning

confidence: 99%

Investigating barriers to demand-driven SME collaboration in low-volume high-variability manufacturing

Kazantsev

Pishchulov

Mehandjiev

et al. 2022

SCM

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Purpose This paper adopts a multi-tier perspective and aims to explore challenges of small and medium-sized enterprises (SMEs) in collaborative manufacturing amid the emergence of dedicated B2B platforms. Original equipment manufacturers welcome formation of demand-driven collaborations between SME suppliers to facilitate ramp-up of production capacity. While being potentially beneficial to suppliers, such collaborations face various barriers. Design/methodology/approach An exploratory study of 17 suppliers within the European Union’s aerospace industry was undertaken. The study comprised two stages. In the first stage, suppliers’ answers to self-administered interviews were analysed using thematic analysis. In the second stage, interactions between the barriers were determined through interviews with experienced SME collaboration facilitators. The authors apply system dynamics modelling to analyse the links between barriers and identify re-enforcing and balancing loops of other factors. Findings The authors establish five major groups of barriers to collaboration impeding: market transparency, access to orders, partner trust, contracting and (e) data sharing and coordination. The authors model application of four enablers that facilitate barrier removal for technology-enabled supply chains: digital platforms, supplier development, smart contracts and Industry 4.0. Research limitations/implications The study is limited by the data collection from the aerospace industry; validation of the models in other low-volume high-variability manufacturing sectors is needed. Practical implications The reader will learn about the barriers which impede demand-driven SME collaboration within manufacturing supply chains, interrelationships between these barriers and suggestions about how to remove them. SME cluster managers will find managerial implications particularly interesting as they will help them to overcome collaboration concerns and better prepare cluster members for Industry 4.0. Social implications The models developed within this study can be used to explore the effects of intervening at critical points in the model to create virtuous improvement cycles between key barriers and related variables in the model. This can help decision-making and policymaking in the area of supply chain integration. Originality/value There is currently a lack of studies about how the existing barriers amplify and de-amplify themselves and what the managerial approaches to tackle the barriers are. It is unclear how far companies will go in terms of information sharing, given the trust levels, power dynamics and governance structures evident in supply chains. This study contributes by explaining the reinforcing interaction between the barriers and showing ways to overcome these using enablers.

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Section: Research Gapmentioning

confidence: 99%

Investigating barriers to demand-driven SME collaboration in low-volume high-variability manufacturing

Kazantsev

Pishchulov

Mehandjiev

et al. 2022

SCM

View full text Add to dashboard Cite

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“…Collaboration is the essence of the concept of extended organization (Braziotis et al, 2017;Spekman & Davis, 2016). One way to collaborate using IT is integration, and it can be done by data integration and service integration (Putri et al, 2020 (Priantari & Kurniawan, 2018), as shown in Figure 1.…”

Section: Extended Organizationmentioning

confidence: 99%

IT Enabled Extended Organization in the Integrated Trade Licensing System

Dewi

Pohan

Handayani

et al. 2020

j. penelit. pos inform.

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<p class="JGI-AbstractIsi">In order to improve the business climate, the Indonesian government focuses on carrying out a fundamental reform program. One part of the program is issuing online business licenses. As a form of compliance, the Ministry of Trade (MoT) needs to implement the Integrated Trade Licensing System (ITLS), where the system’s values will be made possible through a collaboration between government agencies. This condition illustrates a self-organizing network of organizations where each agency will be able to contribute its values and result in a new set of values. This concept is aligned with the extended organization. This paper aims to examine how ITLS can successfully work through government agencies’ collaboration in an extended organization. The research methodology used a qualitative approach by collecting data through documentation study, observation, and interviews. The study found that trade licenses can only be issued if the value given by the extended organization is sent to ITLS with the assistance of information technology (IT). This research is expected to be a lesson learned of extended organization concept in government agencies.</p>

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“…In order to ensure the quality of products and avoid the loss caused by risks, such as brand reputation damage, market share shrinkage, and so on, the manufacturer and supplier need to invest part of their resources to ensure the quality of products [25][26][27][28]. Our work will be based on the complete understanding [29] of manufacturer and supplier sharing risks and rewards in an effective collaboration with key strategic and operational results. As long as there are no problems, or problems in the production process are reasonably solved, according to the contract, both players will share the benefits of the product.…”

Section: Main Manufacturer-supplier Collaborative Modementioning

confidence: 99%

Evolutionary Game Analysis of the Effects of Problem Size and the Problem Proposing Mechanism on the Problem Processing Mechanism in a New Main Manufacturer–Supplier Collaborative System

et al. 2019

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This paper analyzed the effects of the problem size and the problem proposing mechanism on the decision-making processes, for the manufacturer and the supplier, regarding processing a problem in a new main manufacturer–supplier collaborative system using evolutionary game theory. Unpredicted problems may arise in the process of collaborative research and development (R&D) of complex products, like big passenger aircrafts, without any relative advanced contract, and either player will take risks to announce it. In addition to the factors of traditional cost and income, we take another two factors (i.e., the problem size and the problem proposing mechanism) into account in the examination of the problem processing mechanism. With evolutionary game theory applied, we can obtain the stable decision-making states of both players and how these two factors affect the problem processing mechanism. From the result, we find that the problem size has little effect on the two players’ decisions, while the problem processing mechanism has an impact when the experiences or the capacities of the manufacturer and the supplier are unbalanced. This paper contributes to manufacturer and supplier in a newly-established collaborative system to consider how to behave when unpredicted problems come.

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Strategic and operational considerations for the Extended Enterprise: insights from the aerospace industry

Cited by 17 publications

References 75 publications

Investigating barriers to demand-driven SME collaboration in low-volume high-variability manufacturing

Investigating barriers to demand-driven SME collaboration in low-volume high-variability manufacturing

IT Enabled Extended Organization in the Integrated Trade Licensing System

Evolutionary Game Analysis of the Effects of Problem Size and the Problem Proposing Mechanism on the Problem Processing Mechanism in a New Main Manufacturer–Supplier Collaborative System

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