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    From Static To Dynamic Costing: Managing External Volatility and Evaluating Supply Chain Configurations in MTO Manufacturing
    Manufacturing firms face growing exposure to volatile and uncertain global markets. Particularly in make to-order (MTO) environments involving complex, large-scale machinery and equipment, long project lead times amplify the impact of external cost fluctuations on competitiveness and profitability. To date, limited attention has been given to how firms can systematically integrate dynamic external market factors into early-stage project costing. This study addresses this gap through an in-depth single case within the Swiss mechanical engineering industry. Using a Design Science Research (DSR) approach, a conceptual framework and cost prediction tool were developed to capture the effects of dynamically changing cost factors - such as wages, exchange rates, and material prices - on distinct cost components, including in-house production, external devices, and service activities. The framework was operationalized in a dynamic cost model employing exponential smoothing (Holt-Winters) time-series forecasting based on monthly historical data. The findings demonstrate that exchange-rate fluctuations and regional cost differentials can materially alter projected project margins and reshape the relative attractiveness of alternative production locations and associated supply chain configurations. This study contributes to the literature on MTO costing and adaptive supply chain configuration under uncertainty by showing how external market volatility can be operationalized within early-stage decision processes. For practitioners, this tool provides early cost transparency and supports the evaluation of alternative supply chain configurations and pricing decisions.
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    Towards circular business models in the punching industry: Leveraging smart sensor technology for sustainable manufacturing processes
    The punching industry (PI) remains largely dependent on unsustainable resource use in its manufacturing process, consuming finite materials. Evolving market needs for increased environmental sustainability in the PI cause punching companies to reevaluate their existing manufacturing processes. Considering this trend, this research explores the prerequisites for transitioning to circular business models (CBMs), a subset of sustainable business models, by using smart sensor technology (SST) supporting a sustainable manufacturing process (SMP). Prior research has shown that using different sensors pertaining punching tools and machines is prevalent. Standard parts in the punching tool itself address these challenges of an imprecise set-up of the punching tool on the punching machine resulting in process improvements and efficiency enhancements. Yet, no similar data-driven punching tool concepts have been installed highlighting the novelty. To address this gap, this study examines how data can be gathered and successfully utilized to support SMP fostering CBMs in the PI based on data-driven punching tools. Mixed methods are applied in a practice-oriented project, involving a Swiss-based manufacturer. The results demonstrate several key drivers supporting SMPs enabled by data-driven punching tools. Future research should involve a larger number of interviews and further field testing to increase maturing SST data-driven punching tools.
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    Thriving Circular Economy Actions in Public and Private Relationships: The Microfoundations of Firms’ Green Behavior
    (2024) ;
    Niklas Letmathe
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    Marin Jovanovic
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    The R&D Management Conference is an international event initiated in Manchester in 1980, which annually brings together academics and practitioners concerned with the study of R&D, technology management and innovation. This conference will explore how technology is disrupting and transforming established industries through innovation.
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    Rolling-out company-specific production systems in multinational corporations – a multilateral network perspective
    Company-specific production systems (XPS) have recently seen a surge of attention in industry, due to their potential to yield substantial performance improvements. Their implementation however represents a complex process that needs to be managed thoroughly to avoid potential pitfalls. This exploratory study provides a holistic overview on how to manage the roll-out of XPS in multi-plant networks of multinational corporations (MNCs), adding to the understanding of this phenomenon. Investigating the XPS roll-out in the pharmaceutical industry, this multiple-case study yields two major findings. First, companies roll-out their XPS in a deliberate sequence or create an emerging sequence through pull mechanisms. Second, site resource availability is a key determinant of the deliberate sequence. The study follows the call for more research on XPS from a headquarter perspective and extends current research beyond the bilateral headquarter-site perspective, taking a multilateral network perspective. Finally, it provides practical insights that help XPS managers in defining their roll-out roadmaps.
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    Network Improvement Initiatives: How to Deploy a Network Strategy
    This paper explores how manufacturing firms deploy network strategy by developing network capabilities in international manufacturing networks (IMNs). Drawing from the resource-based view (RBV), network capabilities, and strategic initiatives literature, we analyze 109 strategic iniativies from 11 IMNs, classifiy them into 20 initiatve types, and assess the effort required for implementation. The types range from building new sites to establishing knowledge exchange networks. We identify patterns between capability type, capability gap size, and implementation time. In doing so, this study contributes to the theory of network strategy deployment and generates insights for operations managers to select initiatives effectively.
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    Evolution of Corporate Improvement Programs: a Punctuated Equilibrium Theory Perspective
    (2024)
    Matteo Rossini
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    Torbjörn Netland
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    Corporate improvement programs are a strategic lever for multinational companies to develop productivity and generate competitive advantage. However, although they are created to last, they change, crumble, or collapse. In this research, within the theoretical lenses of punctuated equilibrium theory, we investigate corporate improvement programs, how they change, what influences their evolutionary pattern, and what keeps them from changing. The research is based on a qualitative multiple-case study. As a result, we propose a framework that sheds light on the evolution of corporate improvement programs, highlighting implications for academics and practitioners.
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    Paving the way towards a circular economy: Lifecycle services to make the transition towards circular business models
    This book of abstracts summarizes the proceedings of the 10th International Conference on Business Servitization (ICBS 2023). On this edition, the conference places a special emphasis on the focal theme: AI Platforms for Digital Servitization and Solution Delivery.
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    Conceptual Ecosystems to Support the Development of Sustainable Business Models for a Capital Equipment Manufacturer
    (2023) ;
    Manuel Ritter
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    Shaun West
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    Improving sustainability concerns many stakeholders: customers, shareholders, employees, and regulators. The manufacturing industry is a significant factor as production continually depletes finite resources. Without a shift to more sustainable business models (i.e. those based on the triple bottom line), there is a risk of continued depletion of resources. A common finding from prior work is the need to act within an ecosystem approach to support the development of a circular economy that considers the multiple interactions and dynamic recombination of resources that lead to value co-creation. This paper investigates the interplay of ecosystem actors and builds conceptual habitats to improve sustainability. It considers the strategic meso and macro levels of the ecosystem to provide detailed insights into the behaviors and motivations of different actors. Critical bilateral and multilateral interdependences among the ecosystem actors are highlighted. The presence of digitalization provides the necessary institutional arrangements for interactions between diverse actors. This builds upon the work of West et al. (Practices and tools for servitization. Springer, pp. 363–385, 2018), by creating multiple conceptual future state ecosystems, identifying gaps within the ecosystems, and providing a description of the actors. The study suggests that an extended model is considered for developing and operationalizing sustainability-based business models for capital equipment. The limitations of this study reveal the requirement to validate and cross-check the suggestions in a real case example with a broader scope for comprehensive qualitative and quantitative data collection.
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