Sequences of operational improvements: some empirical evidence

Abstract

Looks at the improvement initiatives which companies implement in operations, in the areas of design, supply and production. A number of initiatives are considered, including design computerization, flexible automation, linkages with suppliers and JIT. In the literature these initiatives have been given different names, such as technical and organizational innovations or best manufacturing practices. Using survey data, the paper examines the question of the existence of different sequences followed by companies to innovate their operations. A sample of 125 US, Japanese and Italian companies belonging to the electronics, machinery and transport industries is analysed. On the basis of the initiative start‐up year, four different sequences have been found. They are different in terms of two dimensions: one is the type of initiatives launched at the beginning, and the other is the level of selectiveness of the companies in launching the initiatives. The sequences have been labelled Hard Full Adopters, Hard Discriminators, Soft Full Adopters and Soft Discriminators. Company characteristics, such as the country of location, and context factors such as export, and length of product life cycle have emerged as discriminating factors between the sequences.

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