Tenhiala A.,IE Business School
Journal of Operations Management | Year: 2011
Although 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. © 2010 Elsevier B.V.
Corsten D.,IE Business School |
Gruen T.,University of Colorado at Colorado Springs |
Journal of Operations Management | Year: 2011
Over the past decade conceptual and empirical research in operations management has embraced the idea that collaborative supplier-buyer relationships are a source of competitive advantage for manufacturing firms. Anecdotal evidence from the Japanese and U.S. automotive industry and emerging research suggests that inter-organizational identification of suppliers with their buyers, termed supplier-to-buyer identification, is an unexplored factor of relational advantage. This study presents a model and empirical test that supplier-to-buyer identification fosters superior operational performance by enhancing trust, supplier relation-specific investments, and information exchange. Through a survey of 346 automotive supplier-buyer relationships, the findings show that supplier-to-buyer identification directly impacts supplier relationship-specific investments and information exchange, although most of the latter effect is mediated by trust. The findings also indicate that supplier relation-specific investments and information exchange play different but complementary roles in influencing operational performance. The results suggest new directions for supplier-buyer relationship research in operations management and important managerial implications. © 2010 Elsevier B.V.
Goh J.M.,IE Business School |
Gao G.,University of Maryland University College |
Agarwal R.,University of Maryland University College
Information Systems Research | Year: 2011
Despite the significant potential for performance gains from health IT (HIT), there has been limited study of the mechanisms underlying successful HIT implementations. We conducted an extensive longitudinal field study to gain an understanding of the interplay between technology and patterns of clinical work embodied in routines. We use the analytical device of narrative networks to identify where and how HIT influences patterns of work. We further draw upon adaptive structuration theory to conceptualize HIT as an intervention that alters the flow of events in a narrative network. Our findings suggest that the key to successful implementation is to manage the co-evolution process between routines and HIT and to actively orchestrate a virtuous cycle through agentic action. We propose a dynamic process model of adaptive routinization of HIT that delineates the major channels through which HIT and routines interact, identifies the different stages in the dynamic co-evolution process, and isolates the pivotal role of two forms of agency in enabling the virtuous cycle of co-evolution. This is one of the first studies to offer a processual, microlevel analysis of HIT implementation in a clinical setting. © 2011 INFORMS.
Gordon L.A.,University of Maryland University College |
Loeb M.P.,University of Maryland University College |
Sohail T.,IE Business School
MIS Quarterly: Management Information Systems | Year: 2010
Information security is a fundamental concern for corporations operating in today's digital economy. The number of firms disclosing items concerning their information security on reports filed with the U.S. Securities and Exchange Com-mission (SEC) has increased in recent years. A question then arises as to whether or not there is value to the voluntary disclosures concerning information security. Thus, the primary objective of this paper is to assess empirically the market value of voluntary disclosures of items pertaining to information security. Based on a sample of 1,641 disclosing and 19,266 non-disclosing firm-years in a cross-sectional pooled model, our primary findings provide strong evidence that voluntarily disclosing items concerning information security is associated positively with the market value of a firm. These findings are based on the use of a market-value relevance model, as well as a bid-ask spread analysis. The study's findings are robust to alternative statistical analyses. The findings also provide support for the signaling argument, which states that managers disclose information in a manner consistent with increased firm value. Finally, the study findings provide some insight into the strategic choice that firms make regarding voluntary disclosures about information security.
Tenhiala A.,IE Business School |
Helkio P.,Aalto University
Journal of Operations Management | Year: 2015
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. © 2014 Elsevier B.V.