Process Management Practices and Plant Performance: A Configuration Approach Janine L. Sanders Operations and Management Science Department Carlson School of Management University of Minnesota Advisors: Dr. Roger Schroeder and Dr. Kevin Linderman
Dec 25, 2015
Process Management Practices and Plant Performance: A Configuration
Approach
Janine L. SandersOperations and Management Science DepartmentCarlson School of ManagementUniversity of Minnesota
Advisors: Dr. Roger Schroeder and Dr. Kevin Linderman
Motivation
Practical Increased emphasis on process management in
organizations Several drivers for adoption
i.e., Customer requirement, Strategic, Imitation
Some organizations will fail for a variety of reasons– Mismatch with strategy, structure, culture– Lack of top management support
Motivation
Research Institutional forces strong influence on other
manufacturing practices Process management practices impact on
performance inconsistent– Limited studies specifically on process management
practices– Numerous definitions and measures
Research Questions
How do institutional forces affect the degree of use of process management practices?
When is process management practices beneficial to an organization? Are there specific configurations of external and internal organization components that align with process management practices to yield better plant performance?
Literature Review
Process Management as an element of TQM(Flynn et al.,1995; Anderson et al.,1995; Powell, 1995; Choi and Eboch, 1998; Rungtusanatham et al., 1998, 2005; Samson and Terziovski, 1999)
Process Management Practices(Ahire and Dreyfus, 2000; Ittner and Larcker, 1997)
Process Management and Strategy(Benner and Tushman, 2002, 2003; Sousa and Voss, 2001)
Definition and Context
Process Management Practices– The tools and techniques used to manage processes that
create customer value, organizational value, and/or support key business operations
– Three types of practices: map, improve, and control
Context: Shop-floor level manufacturing processes
Institutional affect
Institutional theory Types of forces
– Industry– Country– Competitive Intensity– Customer driven– Government regulations
P1: Institutional forces, such as industry, country, competition, customer demands, and regulatory requirements, will influence the use of process management practices.
Configuration Approach
Configuration Theory(Miller, 1987; Meyer et al., 1993; Doty et al., 1993; Dess et al., 1993; Drazin and Van de Ven, 1985)
Elements for Configuration (Miles and Snow, 1978)– Environment– Strategy– Structure – Process Management Practices
Configuration Model
Ideal Organization TypesProspectorDefenderAnalyzer
Degree of use of Process Management Practices
Alignment(Ideal organization type fit with process management practices)
Plant Competitive Performance
Table 2: Organizational Types Configurations
Dimension Prospector Defender Analyzer
ENVIRONMENT
Uncertainty H L M
Complexity H L M
STRUCTURE
Hierarchical levels L H M
Centralization of Authority
L H M
Formalization L H M
Functional Interdependence
M L H
STRATEGY
Narrow market, Cost leader
Broad markets, First mover
Mixed market, Follower
Quality Values and principles
M H H
Process Management Practices
L H M
H=high, M=medium, L=low
Configuration Propositions
P2: There is a difference in the level of use of process management practices between Prospectors, Defenders, and Analyzers. Defenders use process management practices the most, while Prospectors use them the least.
P3: The alignment between organization type and use of process management practices is positively associated with plant performance.
P4: There is no difference in plant performance when there is a high degree of alignment between organization type and process management practices.
Research Methodology
Sample– N=189– Automotive, electronics, and machinery industries– Japan, Sweden, Finland, Korea, Germany, USA
Measures Classification Methods
– Interval scaling– Calibration sample– Expert panel
SEM and Multivariate Techniques
Conclusion
Potential Contributions– Identify important institutional factors– Further understand impact of context
Potential Limitations– Missing measures for some variables– Configuration Development– Classification Method
Future Research– Other manufacturing practices– Service organizations and transactional processes