The impact of market focus on operations practices

Abstract

A key element of successful organisations is the alignment of their strategy and tactics. This study explores the relationship between a firm's competitive strategy and its operations practices in the context of a developing economy. Two competitive strategies are examined; a niche market strategy characterised by targeting specific market segments, and a broad market strategy characterised by serving a wide range of market segments. Three sets of operations practices consistent with the adoption of lean manufacturing, Total Quality Management, and relationship development in a supply chain context, are explored. Using survey data from senior managers in Thailand, results show that for firms adopting a niche market focus, competitive strategy directly influences process management and relationship development, which in turn affect workforce commitment. Only workforce commitment has a direct effect on operational performance. In contrast, for firms adopting a broad market focus, competitive strategy directly influences workforce commitment, which in turn affects process management and relationship development practices. It is the latter practices that directly influence operational performance.

Lean manufacturing implementation and performance: the role of economic volatility in an emerging economy

“…cost, speed, dependability, quality and flexibility Belekoukias et al (2014) Investigating the network of influences among lean practices (supplier management, human resource management, just-in-time and total quality management practices), operational responsiveness (product mix variety, product innovation and time effectiveness) and company growth performances in Italian companies Bevilacqua et al (2017) Modelling of job design under lean manufacturing to capture the distinct motivational and health-impairing potential Cullinane et al (2014) Exploring the CSFs, i.e. the critical success factors for Lean Six Sigma in the Malaysian automotive industry Fadly Habidin and Mohd Yusof (2013) Examining how utilization of non-financial manufacturing performance (NFMP) measures impacts the LM and financial performance relationship Fullerton and Wempe (2009) Study on how lean management accounting practices can support operations personnel with their internal decision making, and operations executives and business leaders in their objective of increasing lean operations performance as part of a holistic lean enterprise strategy Fullerton et al (2014) Examining whether application of information technology and different principles of LM are interdependent and complimentary or they are mutually exclusive Ghobakhloo and Hong (2014) Investigating the degree to which LM practices are being implemented within Brazilian small and medium enterprises (SMEs), by defining what LM means, in the view of SMEs in Brazil Godinho Filho et al (2016) Investigating the unique and complementary effects of manufacturing technologies and lean practices on operational performance of manufacturing firms Khanchanapong et al (2014) Exploring the relationship between a firm's competitive strategy and its operations practices consistent with the adoption of LM Laosirihongthong et al (2010) Study on leadership style and organizational cultureelements that are conducive for Chinese shop-floor employees to participate in problemsolving in LM Li et al (2015) Study of the effect of employee involvement on LM and the effect of LM on production outcomes Marin-Garcia and Bonavia (2015) Examining the relationship among lean manufacturing management, competitive skills, and business performance from the perspective of managers of companies doing business in Brazil Moori et al (2013) Providing an outline of lean implementation helping managers to implement lean in their premises and using SEM to develop independent and latent variables Ravikumar et al (2013) Developing a model for measuring adherence to lean practices for automotive part suppliers and assessing the relationship between the firm performance and the adoption of lean principles Sezen et al (2012) Providing guidance for the management of supply chains in order to increase the likelihood of lean thinking being generally adopted for the purposes of value creation, and exami...…”

How IJPR has addressed ‘lean’: a literature review using bibliometric tools

“…According to Challis, Samson, and Lawson (2005), results from a survey of 1024 Australian and New Zealand manufacturing sites indicate that organisational and human resource practices are significantly related to the manufacturing aspects of total quality management. Other survey data from senior managers in Thailand confirm that workforce commitment has a direct effect on operational performance, which in turn affects process management (Laosirihongthong, Tan, and Kannan 2010). Other studies (e.g.…”

“…Other studies published in IJPR focus on the investigation of the adoption of lean manufacturing and of quality management by supply chains, e.g. Laosirihongthong, Tan, and Kannan (2010) and Foster and Ogden (2008).…”

Effects of Strategic Choices for the Postmerger Manufacturer on Supply Chain Members

“…ere is scant research on focus strategy. Laosirihongthong et al [29] used ailand survey data to analyse the effect of a broad market strategy and a niche market strategy on operation practices. To meet the diversified demands of consumers and the rapid changes in the market, AlGeddawy and ElMaraghy [30] proposed the concept of delayed product differentiation, which is to add product characteristic in the final stage of product production.…”