PurposeManufacturers seek to innovate and improve processes using new digital technologies. However, knowledge about these new technologies often resides outside a firm's boundaries. The authors draw on the concept of absorptive capacity and the literature on open innovation to explore the role of external search in the digitization of manufacturing.Design/methodology/approachThe authors developed and distributed a survey to manufacturing firms in Switzerland, for which 151 complete responses were received from senior managers. The authors used multiple linear regressions to study the relations among the breadth and depth of external search, firms' adoption of digital technologies and operational performance outcomes.FindingsExternal search depth was found to relate positively to higher adoption of computing technologies and shop floor connectivity technologies. No significant correlation was found between external search breadth and firms' adoption of digital technologies. Regarding performance outcomes, there is some evidence that increased adoption of digital technologies relates positively to higher volume flexibility, but not to increased production cost competitiveness.Practical implicationsManufacturing firms that aim to digitize their processes can benefit from inbound open process innovation, but its utility varies for different clusters of digital technologies. Generally, the findings suggest that firms should build strong ties with a few external knowledge partners rather than surface relations with many.Originality/valueThis study contributes to the growing literature on the digitization of manufacturing with an analysis of the relation between firms' external search and their adoption of digital technologies. It adds early empirical insights to the literature on open process innovation.
Kurzfassung Die Studie „Industrie 4.0 – From a Management Perspective“ der Universität St. Gallen beleuchtet unter anderem die größten Hindernisse für eine erfolgreiche Implementierung von Industrie 4.0, zeigt welche Probleme bereits gelöst werden konnten und erläutert an welchen Stellen nach wie vor akuter Handlungsbedarf besteht. Hierzu wurden insgesamt 116 Unternehmen der produzierenden Industrie befragt. Im Folgenden werden die signifikantesten Barrieren vorgestellt und Handlungsvorschläge präsentiert.
The digital transformation is a complex and multi-faceted phenomenon, which companies hamper to manage effectively. One particular facet of this phenomenon is the role of managers, which is still underrepresented in research. This study aims to identify and explain why and what managerial practices and competencies are particularly needed to effectively govern through this transformation. We choose the case study methodology as the research design with eight manufacturing companies in Western Europe, where we applied within- and cross-case analyses. Specific barriers for digital transformation and four aggregated managerial practices, such as strategy/organization, collaboration, cross-functionality and data-driven use cases, were identified. These were supported by 13 competencies to facilitate digitalization. We explicate these practices based on the change management theory and provide a model describing the impact of these practices on profitability. This study contributes to the emergent change theory by analyzing practices and competencies that managers should be equipped with to foster digitalization.
Kurzfassung Die Organisation eines Unternehmens ist ein zentrales Element, um Digitalisierung aus der Gesamtperspektive voranzutreiben. In der Praxis sind fünf Organisationsformen zur Verankerung von Digitalisierung üblich: dezentral, funktional, Führungsteam, Kompetenzzentrum und Leitwerk. Eine aktuelle Studie zeigt, dass insbesondere die letzten beiden Formen Digitalisierungsaktivitäten wirksam voranbringen. Die Wahl einer geeigneten Struktur kann mit Hilfe eines dreistufigen Prozesses unterstützt werden.
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