Competitive advantage the Toyota way

Fane, Gary R; Vaghefi, M. Reza; Deusen, Cheryl Van; Woods, Louis A.

doi:10.1111/j..2003.00286.x

Cited by 7 publications

(6 citation statements)

References 1 publication

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“…This paper emphasizes the importance of redesigning the production system structure. The literature argues that the role of human capital within the production system is the key factor in a manufacturing industry's success, perhaps even more than the production system design itself, as the company's success depends on the efforts and capabilities of its intellectual capital and its staff's ability and capacity to innovate (Fane et al 2003). However, when internal structural conflicts impair a system and the system lacks mechanisms for control, operation, management, and forecasting, even the most talented and skilled individuals may have limited ability to succeed.…”

Section: Discussionmentioning

confidence: 99%

The PICO Framework for Analysis and Design of Production Systems for Construction

Sharoni,

Sacks,

Yeung

et al. 2023

Proceedings of the 31st Annual Conference of the International Group for Lean Construction (IGLC31)

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PICO is a framework that provides a conceptual guide for production system analysis and design in the construction industry. It has four key components: Production control mechanism, Information and communication system, Commercial terms, and Organizational structure. Each component is highly interdependent and has a set of detailed parameters and enumerated values. A comprehensive literature review, case studies, and analysis highlighted the knowledge gaps in current production system design frameworks. The PICO framework was originally devised to design a production system suited for short-takt production in residential construction, but it has been developed into a comprehensive mapping tool for the design and analysis of construction production systems in general. The paper shows an application of the framework to a takt system as a case study and an example of its application. The framework expands the current understanding of production systems in construction, offering new insights and a comprehensive approach to designing new production systems.

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Section: Discussionmentioning

confidence: 99%

The PICO Framework for Analysis and Design of Production Systems for Construction

Sharoni,

Sacks,

Yeung

et al. 2023

Proceedings of the 31st Annual Conference of the International Group for Lean Construction (IGLC31)

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“…Some executives view giving up the warrants as the price of doing business with Amazon (Mattioli, 2021). Chen (2012) argues that if the buyer's equity position is substantial, the buyer may gain seats on supplier's board of directors, enabling it to monitor and influence the supplier's strategic decisions to gain alignment with its own priorities (Fane et al, 2003). 4 In these ways, DO increases the buyer's bargaining power in the relationship, which could benefit the buyer at the expense of the supplier.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

The role of direct equity ownership in supply chains

Haw

Swink

Zhang

2022

J of Ops Management

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This study examines the effect of direct equity ownership (DO) a buyer holds in its supplier on financial performance and operations of the supplier and buyer. Based on a sample of US buyer-supplier pairs from 1982 to 2017, we find that DO benefits buyer performance, but not supplier performance. The results support the view that DO mainly provides greater control for the buyer.Furthermore, we find that the performance effects of DO are moderated by firm characteristics that engender dependence. The beneficial influence of DO on a buyer's performance is more pronounced when the buyer is more innovative or operates in a more competitive environment. Our examination of the effects of DO on the operations of suppliers and buyers finds that suppliers in buyer-supplier relationships (BSRs) with higher DO invest more in relationship-specific assets (R&D), provide more trade credits, and have lower gross profit margins. Buyers in BSRs with higher DO receive more trade credits and have lower cost of goods sold when the purchases of the buyer from the supplier make up a high proportion of the buyer's cost of goods sold. Overall, these results suggest that DO primarily benefits the buyer at the expense of the supplier, a finding that is consistent with the effects of bargaining and control power of the buyer. We discuss the implications of these findings for practitioners and for extensions to both relational and resource dependence theories.

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“…One of such radical process innovations is reflected in the introduction of the Toyota Production System reflecting a mix of lean manufacturing, just-in-time, kaizen-continuous improvement, evaluate and correct, problem-solving, teamwork, Total Quality Management and Jidoka-automation integrated with human touch (Gary, Vaghefi & Deusen, 2003as cited in Boudette, 2018.…”

Section: Mapping Toyota's Innovation Spacementioning

confidence: 99%

Radical and Incremental Innovations as Critical Leveragers of a Firm's Financial Performance: Best Practices from Tesla and Toyota

Boniface

2022

Univers. J. Financ. Econ.

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Even if the rippling effects of radical and incremental innovations often bolster a firm's overall effective financial performance, managing all kinds of innovation activities is often not a linear process that induces the desired outcome and profitability levels. Thus, given the high rivalrism in the global car market, this paper offers a critical analysis of Tesla and Toyota's radical and incremental innovation management strategies so as to extract the best practices that can be emulated by other innovation ventures to bolster their competitiveness and financial performance. Methodology used in such analysis entailed a systematic review and synthesis of the existing online data, academic journals and textbooks on Tesla and Toyota's radical and incremental innovation management strategies. Combined with the interview of twenty personnel from car dealers in Aberdeen, Edinburgh and Glasgow in Scotland about their perceptions of Tesla and Toyota's innovative products, outcomes of such systematic review were triangulated with the core radical and incremental innovation management theories to discern how they offer coherent explanation of Tesla and Toyota's innovation space and management strategies. Though Tesla and Toyota seem to use similar radical and incremental innovation management strategies of search, select, implement and capture, Toyota was still found to have a radical product innovation disadvantage that undermines the development of better EVs to counter Tesla's premium EVs. Similarly, Tesla also has a radical process innovation deficiency that affects the development of cheaper and affordable EVs to further erode Toyota's market dominance. Given such findings, the paper highlights some of the best radical and incremental innovation management practices that can be emulated by different innovation ventures to create, deliver and capture the desired innovation values that can bolster their overall competitiveness and financial performance.

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Competitive advantage the Toyota way

Cited by 7 publications

References 1 publication

The PICO Framework for Analysis and Design of Production Systems for Construction

The PICO Framework for Analysis and Design of Production Systems for Construction

The role of direct equity ownership in supply chains

Radical and Incremental Innovations as Critical Leveragers of a Firm's Financial Performance: Best Practices from Tesla and Toyota

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