An exploratory study on manufacturing strategy formulation in start-up companies (original) (raw)
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Market-pull and technology-push in manufacturing start-ups in emerging industries
Journal of Manufacturing Technology Management, 2013
Purpose -As traditional manufacturing, previously vital to the UK economy, is increasingly outsourced to lower-cost locations, policy makers seek leadership in emerging industries by encouraging innovative start-up firms to pursue competitive opportunities. Emerging industries can either be those where a technology exists but the corresponding downstream value chain is unclear, or a new technology may subvert the existing value chain to satisfy existing customer needs. Hence, this area shows evidence of both technology-push and market-pull forces. The purpose of this paper is to focus on market-pull and technology-push orientations in manufacturing ventures, specifically examining how and why this orientation shifts during the firm's formative years. Design/methodology/approach -A multiple case study approach of 25 UK start-ups in emerging industries is used to examine this seldom explored area. The authors offer two models of dynamic business-orientation in start-ups and explain the common reasons for shifts in orientation and why these two orientations do not generally co-exist during early firm development. Findings -Separate evolution paths were found for strategic orientation in manufacturing start-ups and separate reasons for them to shift in their early development. Technology-push start-ups often changed to a market-pull orientation because of new partners, new market information or shift in management priorities. In contrast, many of the start-ups beginning with a market-pull orientation shifted to a technology-push orientation because early market experiences necessitated a focus on improving processes in order to increase productivity or meet partner specifications, or meet a demand for complementary products. Originality/value -While a significant body of work exists regarding manufacturing strategy in established firms, little work has been found that investigates how manufacturing strategy emerges in start-up companies, particularly those in emerging industries.
A methodology for formulating a business strategy in manufacturing firms
International Journal of Production Economics, 1999
This paper describes a methodology for formulating a business strategy in small-and medium-sized manufacturing firms. It identifies the objectives and beliefs of the owner. Then Strategy Business Units are defined as pairs of products-markets to produce a customer oriented analysis. They are assessed and action plans are generated to improve the competitiveness of the company, taking charge of the preferences of the owner. A reduced number of indicators is used to monitor the performance of the company. The way the process is applied is discussed and its application in five firms is presented as an illustration.
Manufacturing Strategy: A Methodology and an Illustration
Interfaces, 1985
A manufacturing strategy is a critical component of the firm's corporate and business strategies, comprising a set of well-coordinated objectives and action programs aimed at securing a long-term, sustainable advantage over the firm's competitors. A manufacturing strategy should be consistent with the firm's corporate and business strategies, as well as with the other managerial functional strategies. We present a process and a structured methodology for designing such a manufacturing strategy. This methodology has been successfully tested in actual manufacturing environments. An illustration is given based on work at Packard Electric. 1.
Evolving forms of manufacturing strategy development
This paper outlines, using evidence from several case studies, the use of alternative forms of manufacturing strategy processes. Our investigation shows that the manufacturing strategy development practices of manufacturers are evolving in many directions; we found several alternatives to the formal top-down planning process. Manufacturers use one or more of the following alternatives with or without the top-down manufacturing strategy process: a coherent pattern of actions; manufacturing/process improvement programs; or the pursuit of core manufacturing capabilities. It appears that the various manufacturing strategy development processes may be tied to the strategic role of manufacturing in a company. This paper offers a framework that captures the relationship between the strategic role of manufacturing and the process of manufacturing strategy development. An in-depth case from a UK company illustrates the evolving forms of manufacturing strategy development processes.
An exploratory study of the manufacturing strategy process in practice
Journal of Operations Management, 1990
This work presents an exploratory empirical study of the process of formulating and implementing manufacturhrg strategy within the framework of overall corporate strategy, as practiced by a crosssectional representation of leading-edge firms.
A study of Ericsson regarding manufacturing and its position in the company. At Ericsson manufacturing has a fairly high rank and is also involved in the product development process at an early stage. The responsibilities for developing manufacturing strategies are delegated to the people at the different plants. Some small differences and competition between the plants are accepted, as long as it does not have a bad influence on the result. Any cultural differences could however be a severe obstacle to realizing the strategies. Further studies could cover small and medium enterprises and their adoption of manufacturing strategies.
To Evolutionary Steps for Manufacturing Strategy in Small and Medium Enterprises
2012
Usually, we can find lots of methods and recipes for operating in the field of strategy. Many distinguished and important organizations, like the United Nations, the Food and Agriculture Organization, the United Nations Industrial Development Organization, and others, work so hard to help a constellation of Small and Medium Enterprises (SME) across the world. These kinds of enterprises exist in the developed countries as well as in the emerging economies, but, usually, the global strategy that they adopt can't be easily synchronized with the manufacturing function. Then, it's not common to find in the literature an easy way to move the actual manufacturing strategy towards the goal proposed by the global strategy. In this work, an analytical methodology is proposed to align this manufacturing strategy with global strategies using as a motivating force the customer satisfaction, innovation and the systemic competitiveness framework. This approach is made in step way, making s...
A taxonomy of manufacturing strategies in manufacturing companies in Ireland
Purpose -The purpose of this paper is to replicate the taxonomic study of Miller and Roth and to validate its applicability in a small newly industrialised country. Design/methodology/approach -An empirical survey of manufacturing companies in Ireland was conducted using a research instrument that replicated the questions asked in the original 1994 study. Data was collected using mail questionnaires posted to 874 manufacturers. A total of 199 respondents were used for this study. The study tested two central hypotheses using advanced statistical data analysis techniques, such as canonical discriminant analysis. Findings -The results of the research identified three clustered strategic groups (Best Value, Budget and Multi Focus) which were different from those of Miller and Roth: caretakers, marketeers and innovators. The study supported the dynamic nature of manufacturing strategy, and shows how new manufacturing strategies evolve over time and differ between regions. Research limitations/implications -Further research should replicate this study in other small newly industrialised countries. Given the recently changed nature of the economy within Ireland, a longitudinal study would provide useful insights into the dynamics of manufacturing capabilities. Practical implications -The study provides important insights into manufacturing strategy within a small newly industrialised country. The results suggest that manufacturing strategies appear to change depending on the country of plant location. The manufacturing strategies may be attributed to the unique business environment, challenges and constraints of the country. Originality/value -There is a scarcity of taxonomy studies in general, and there is a dearth of such studies in small newly industrialised countries such as Ireland. Through identifying a new taxonomy the study contributes to the existing literature on manufacturing strategy, and challenges the global applicability of taxonomies developed in the USA.
Manufacturing Strategies Adopted by Companies for Business Performance
Tij S Research Journal of Economics Business Studies Rjebs, 2013
Manufacturing strategy as a concept, area of study and practice has been growing for the last recent years. Nevertheless, as it has grown the clarity of manufacturing strategy has diminished as different approaches and different views have appeared. This paper briefly reviewed the significance of manufacturing strategy and its implementation by firms to raise their performance. From literature reviewed it can be concluded that different firms have embraced different manufacturing strategies in order to develop their business performance. Greatest manufacturing strategies in firms should contain aspects such as the anticipation of new technology, and a link between manufacturing strategy and business strategy, a formal strategic planning process, which includes the company's management, and communication of the manufacturing strategy to firm'semployees.This paper recommends a model of manufacturing strategy that includes five decisions areas namely: 1) product design / engineering; 2) production planning and control; 3) organization and management; 4) plant and equipment; and 5) labor and staffing.