Manufacturing strategy, organizational slack, and the formation of interfirm linkages

Abstract

Purpose This study aims to examine what types of interfirm linkages a firm enters in relation to its manufacturing strategy. The authors further aim to determine whether heterogeneous resources have different moderating effects on the relationship between a firm’s manufacturing strategy and interfirm linkages. Design/methodology/approach The sample consists of survey and archival data on 80 publicly listed electronics firms from the semiconductor and optoelectronics industries in Taiwan. Because the dependent variable, interfirm linkage, is a binary term, the authors apply logistic regression in our study. Findings This paper provides empirical insight into how a firm’s manufacturing strategy affects its probability to engage in specific types of interfirm linkages. The authors find that when a firm pursues an efficiency (flexibility) strategy, it will tend to engage in marketing (technical) interfirm linkages. In addition, absorbed slack strengthens the fit between manufacturing strategy and interfirm linkage type more than unabsorbed slack does. Research limitations/implications Because the sample is drawn from the Taiwanese semiconductor and optoelectronic industries, the authors encourage scholars to examine the generalizability of the findings. Future studies can furthermore adopt in-depth interviews to facilitate a better understanding of decision-makers’ considerations when entering interfirm linkages. Originality/value This study extends resource dependence theory across a firm’s boundary and applies the resource-based view to resource heterogeneity. The findings advance the understanding of the relationships between strategic orientation, slack resources and interfirm linkage choices. The authors show that it is important that firms consider strategic fit when they create linkages outside their existing boundaries.

Konseptualisasi Perang Badar sebagai Strategi Bisnis

“…Studi tentang pentingnya penerapan berbagai macam konsep strategi dalam meningkatkan kinerja baik perusahaan maupun organisasi nonprofit telah banyak menarik banyak perhatian para peneliti misalnya: Grimmer et al (2017); Lorenzo et al (2018); Lu & Huang (2019); Saepudin & Mukarromah (2018); Encep & Cahyani (2016) dan Pasch (2019). Secara umum hasil penelitian menyatakan bahwa faktor utama yang dapat menunjang keberhasilan suatu perusahaan adalah terletak pada penerapan strategi yang tepat, sesuai kemampuan sumberdaya yang dimiliki perusahaan untuk mencapai keunggulan kompetitif.…”

The differentiated and ambidextrous influence of network flexibility on exploratory and exploitative partnership formations

“…Second, we collect our firm-level control variables (firm age, firm size, R&D intensity and industry dummy) from the Taiwan Economic Journal (TEJ) database. The TEJ database is widely used in previous studies (Lu and Huang, 2019) and includes all the publicly listed companies in Taiwan along with company profiles, financial data, equity information and so on.…”

“…Overall, our cross-industry sampling frame includes 279 questionnaires, which produces 80 valid responses (a 28.67% response rate), covering 37 firms (46.2%) in the optoelectronics industry and 43 firms (53.8%) in the semiconductor industry. Following previous studies (Lu and Huang, 2019), the survey contains questions based on established seven-point Likert-type scales ranging from one (strongly disagree) to seven (strongly agree).…”

Sustainable supply network structure: Understanding impact of inter-firms’ relations as drivers of supply network complexity

“…Furthermore, within an SSNS, IFR may also take the form of informal information sharing ties (IIFR) (Chen et al, 2018;Šūmane et al, 2018;Kim et al, 2015a). Lu and Huang (2018) acknowledged the above-mentioned ties based on the five types of establish relationships namely, (i) short term trade; (ii) semi and long-term trade; (iii) coordinatedprofit sharing; (iv) long term alliance; and (v) joint venture. Short-term trade indicates the transaction after the relationship ends.…”