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Nowadays, manufacturing companies face more difficulties than ever. Unrest in global supply chains triggered by fluctuating customer demand, raw material shortages and crises (Covid pandemic, global warming, wars) complicate the utilization of production resources necessary for economic success. Also, the rapidly changing environment causes existing production plans to be adapted, which results in order changes, causing additional costs for manufacturers. One solution to cope with these problems is cooperation and sharing resources: requesting capacity from partners when having shortages and offering them temporarily in case of excess capacity. In this paper, a platform-based resource sharing mechanism is investigated from the economic perspective. In the mechanism, requests and offers are matched by a central platform applying a complex matching logic. The platform provides valid alternatives based on the incoming ordersthat the requesting company can choose from. Companies are rating each other's performance after each interaction based on delivery accuracy;choosing between resource offers is made based on the cumulated rating about the offeror and the price of the offer. Within this paper, the aim is to investigate the resource sharing mechanism from the economic point of view based on an approach to the responsiveness of a supply chain structure to turbulence, to support decision-makers trying to cope with unexpected changes. For this purpose, here the mechanism is briefly introduced, and basic concepts about turbulences in supply chains are also presented. Cost types related to resource sharing manufacturing companies are distinguished, and the model is validated with agent-based simulation. A simulation experiment is performed to investigate the use-case of outsourced jobs having different price levels. Based on the experiment, it can be concluded that there is a price level limit in such a resource sharing federation, under which it is worth it to collaborate with partners by outsourcing certain jobs to them. © 2022 Authors. All rights reserved.
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This research focuses on investigating the impact of industry 4.0 (I4.0) on green performance through manufacturing process factors under COVID-19 by drawing on resource dependency theory. The research uses a quantitative approach, and the data were collected from 614 manufacturing companies in Egypt and were analysed using CB-SEM. The results indicated that there is a direct significant relationship between I4.0 and green performance. In addition, results revealed that manufacturing process factor pull system can significantly mediate the relationship between industry 4.0 and green performance. However, setup time reduction and continuous flow did not have a significant mediating role. Finally, COVID-19 contingency policies had a negative significant moderating role in the impact of industry 4.0 and pull system on green performance. The findings of this research will help in extending RDT through conceptualising it in different settings and using its ideas to build a model that can support manufacturers in maintaining green practices through unitising lean manufacturing and I4.0, especially that focusing on green practices is challenging, and market disruptions, such as COVID-19, increase the difficulty of enhancing green performance. This will also fill the gap regarding the dynamic relationship between I4.0, lean manufacturing and green performance under COVID-19. © 2023 Journal of Applied Structural Equation Modeling.
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With the great challenges that the latest pandemic (COVID-19) has imposed on manufacturing companies, the need to overcome and cope with such situations is becoming crucial. Supply chain resilience is one of the main aspects that enables manufacturers to cope with change and uncertainty;therefore, it is essential to develop the capabilities necessary to do so. This study aimed to ensure supply chain resilience in light of the COVID-19 pandemic through prioritizing main supply chain capabilities. After surveying (30) experts in supply chain from leading manufacturing companies in Jordan, a Fuzzy Analytic Hierarchy Process (FAHP) analysis was conducted to prioritize main supply chain capabilities that were derived from the related literature. The results of this study showed that proactive capabilities, followed by reactive capabilities, were the most dominant capabilities that could ensure supply chain resilience, while efficiency-based capabilities were the least significant. Therefore, manufacturing companies should place their focus and emphasis on reacting to this pandemic in a more systematic manner. © 2023 by the authors.
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Manufacturing small- and medium- sized enterprises (SMEs), which play a decisive role in the Spanish and European economy, have been particularly affected by the disruption generated by the COVID-19 crisis, being their strategic decisions key to maintain their competitiveness. This article explores the strategic priorities defined by managers of manufacturing SMEs to face COVID-19 related challenges. Data were collected from 167 manufacturing companies through an online questionnaire and exploited with factorial and cluster analysis. The results highlight the strategic importance of developing more advanced business models, boosting customer responsiveness and developing the innovative value propositions in developing a proactive response to the Covid-19 crisis. The value of this ongoing study lies in its contribution to quantitative research on the impact of the Covid-19 crisis on the strategic management of manufacturing SMEs. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.
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The COVID-19 pandemic that has hit Indonesia since last year has had an impact on the economy and business continuity of companies in Indonesia. Auditors tend to issue a going concern opinion when they doubt the continuity of the company business being audited, especially during the COVID-19 pandemic. According to preliminary studies, a company's financial condition and growth tend to influence auditors' opinions. Therefore, this study aims to examine the factors influencing the issuance of going concern opinion by auditors, especially financial factors such as profitability and company growth. Data were collected from the financial statement of manufacturing companies listed on the Indonesia Stock Exchange from 2018 to 2020. The test tool used to determine the influence of independent variables on the dependent variable is the logistic regression. The results showed that the company's profitability influences auditor's going-concern opinion and company's growth do not influence auditors' going-concern opinion. This is because during the pandemic, many property companies hampered in continuing development, thereby reducing the company's revenues and profits, which had an impact on the company's hesitation to continue its business. This study is expected to provide information to users of financial statements that the auditor will give a signal to users of financial statements if there are doubts about the viability of the company in the form of giving a going-concern opinion. © 2022 ACM.
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Today, industrial digitalization and Industry 4.0 play an extremely important role as an innovation orientation for automotive manufacturing companies. This trend has only been reinforced by the COVID pandemic. Hungarian industrial players have an essential interest to reach a high level of development in keeping with the era and to be at the forefront of digitalization. However, the previous studies of the authors have shown that Hungarian SMEs, especially domestically owned ones, have encountered significant difficulties in this development path. In this paper, these reasons are explored by analyzing the views of automotive maintenance professionals using different methods. © 2022 IEEE.
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Humanity has faced many crises in the past, such as pandemics, wars, and economic crises, and other crises are certain to come in the future;however, emerging technologies have a role to play in improving companies' resilience in the face of such crises. The coronavirus (COVID-19) pandemic has led to human, technological, and managerial constraints for manufacturing companies due to scarce resources or supply chain (SC) disruptions. The research goal of this paper is to investigate whether Industry 4.0 implementation improved companies' resilience and whether companies' performance maintained stability during the COVID-19 outbreak. Composite-based structural equation modeling is applied to analyse data collected from 207 manufacturing companies. The theoretical model is grounded in the Practice-Based View (PBV) theory. The research findings show that operational responses based on Industry 4.0, smart manufacturing practices, and smart capabilities enable manufacturers to build resilience and quickly mitigate performance loss in times of global crisis. Therefore, the results demonstrate that Industry 4.0 implementation provides resilience for companies through flexibility, reliability, robustness, and responsiveness. The main practical implication of this study is to support managers in achieving manufacturing performance stability during disrupted times, such as the COVID-19 crisis, using Industry 4.0 approaches to make their companies more resilient and prepared to face future challenges and crises. © 2022 Elsevier B.V.
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During the recent years, manufacturing companies were forced to overthink their technology strategy more frequently and outside of their formal planning and budgeting cycles as severe disruptions (e.g., the Corona pandemic, the war in Ukraine or the global semiconductor crisis) exogenously changed the rules for competition. As volatility of global markets and value creation is expected to stay or increase in our digitally hyperconnected world, turbulence-induced strategy processes need to complement the formal planning cycles. Therefore, the present paper seeks to conceptualize a turbulence-induced initiation phase, which is either left out or not emphasized in existing approaches for strategy development. For this, a model concept is elaborated based requirements derived from deficits in theory and a reference modelling for the initiation phase of strategy development. As a result, five component models are presented in a three-layer structure to guide practitioners with the turbulence-induced initiation of their technology strategy development. © 2022 IEEE.
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The bottled water sector in Greece exhibits particular characteristics. After a downturn caused by the COVID-19 pandemic, investments are being made and strategic partnerships are developing, aiming both to increase their competitiveness and to choose the proper strategy for their development. On the other hand, competitiveness is a concept widely used and for that reason has occupied the literature a lot (Fischer & Schornberg, 2007). As a result, it holds great importance to identify and assess the factors that affect competitiveness, performing as a tool for the choice of the proper strategy (Chikán, Czakó, Kiss-Dobronyi, & Losonci, 2022). Of the two main ways for the competitiveness estimation, one with Michael Porter's diamond and the other one with the use of financial indexes, the second one was selected for this paper. All the Greek bottled water manufacturing firms which published their annual balance sheets for the 2016–2020 period were studied and used for the creation of variables. Several economic parameters are studied to determine competitiveness, where market share and profitability account for the most. According to the results, profits, sales, and loans contribute significantly to competitiveness, playing a major role in the determination of strategies that specific firms may follow. © 2022 The Authors.
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Manufacturing companies operate in global environments where competition is increasingly aggressive. To remain competitive, they need to differentiate themselves by updating and expanding their offerings to customers, for instance through the digitalization and servitization phenomena, which allow companies to innovate business models in this direction. This paper deals with an analysis of the subscription business model, which has recently attracted the attention of manufacturing companies for the possibility to establish long-term partnerships with customers by providing services on a continuous basis in return of recurring payments. After a first analysis of the literature on this topic, the effective implementation of the subscription model in the manufacturing environment is analyzed through a case study. The analysis shows that the development of subscription models is strengthened by the utilization of digital tools since they enable processing customers’ data for new service offering generation, leading companies to differentiate their business towards customer-centric solutions. In conjunction, the case study shows how barriers to the implementation of subscription models in the manufacturing sector are still present. Despite this, the Covid-19 pandemic has highlighted the potential of this offer, allowing companies to stay in touch with their customers, and to maintain, or even increase, the revenue streams. © 2022, IFIP International Federation for Information Processing.
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In the global manufacturing business, more sustainable solutions are needed, and in parallel manufacturing companies also need a capability to react quickly to unpredictable changes in a highly competitive marketplace. This has become more visible at the start of the Covid-19 pandemic when many companies experienced manufacturing constraints such as a shortage of raw materials as well as a need for transformation of manufacturing facilities to produce vital items. In parallel, many manufacturing companies also are in the transition towards more digitalization as well as automation in their facilities, which can contribute to the capability to manage unpredictable changes, but it might also contribute to challenges. Therefore, the digital transformation of production processes with innovative and emerging technologies, and the contribution and challenges of these technologies are of importance to understand. Specifically, in which way these emerging technologies contribute to a resilient and sustainable production process from a technological perspective, and how these production processes might contribute to achieving sustainability goals. Based on findings from literature an analysis is performed aiming to explore the emerging technologies perspective in relation to capabilities as well as challenges regarding implementing solutions that contributes to a resilient and sustainable production process. The overall findings indicated the importance of having flexible production facilities to be able to respond to customer expectations. However, the digital transformation of production facilities demonstrated other challenges such as energy consumption, lack of skilled personal, low level of standardization, financial sources, and security problems. To conclude, the relationship between the content of resilient and sustainable production systems that are influenced by emerging technologies are suggested, with the ambition to contribute to a more competitive manufacturing company that increase its capability to manage customer expectations. © 2022 The authors and IOS Press.
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Purpose This study investigates the impact of green supply chain management (GSCM) practices on environmental performance in firms operating in the discretionary sector in the G20 countries. The sample covers 749 firms for the period 2010-2020. Design/methodology/approach This study combines qualitative and quantitative data to examine the impact of the implementation of GSCM on accounting performance measured by the operating margin (OM) and return on assets (ROA). The authors also moderate the effects of Six Sigma and quality management (QM) and ISO 9000 and control for firm variables and COVID 19. Findings Using a panel data regression and structural equation modeling (SEM), results indicate that discretionary firms with internal solid GSCM practices combined with external environmental monitoring of suppliers are likely to outperform their peers in environmental issues. Using hierarchical regression, results indicate that both ISO 9000 and S&QM have moderating effects at some level of performance. Furthermore, environmental performance is positively correlated with accounting performance. This study contributes to the literature by addressing the impact of GSCM and the importance of reinforcing green and social regulations to protect the planet. Originality/value The paper is one of the first to measure GSCM triple components and account for COVID-19 in the context of discretionary companies and G20 countries. It highlights the impact of green initiatives to cope with major disruptions and decrease pollution and environmental disasters.
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Purpose>The purpose of this viewpoint is to present some reflections about the coronavirus disease 2019 (COVID-19) pandemic impacts on the transition to Industry 4.0 in the Brazilian manufacturing sector context.Design/methodology/approach>Initially, a bibliographic research study was carried out to establish a theoretical background and contextualization. After analysing different kinds of documents, the authors of this viewpoint discussed potential COVID-19 impacts on the transition to Industry 4.0 in the Brazilian manufacturing sector. A multidisciplinary discursive approach was used in the debates.Findings>The COVID-19 pandemic will negatively influence the transition of Brazilian manufacturing sector to Industry 4.0. Despite the fact that some “World Class Companies” based in Brazil still continue the transition process towards the “Digital Revolution”, most of Brazilian manufacturing companies are postponing important initiatives related to Industry 4.0 due to uncertainties. In addition, policies promoting innovation are increasingly necessary.Practical implications>This viewpoint presents interesting implications for researchers and society. Researchers can use these reflections to structure surveys or case studies to better understand the aforementioned impacts on companies due to the pandemic. These reflections can also be used by society for public policy debates. For companies, the information presented highlights the relevance of Industry 4.0 as an important phenomenon to manufacturing sector and companies' competitiveness.Originality/value>This viewpoint presents reflections which may be used to encourage debates about how to manage digital transformation in the manufacturing sector during an unstable environment.
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Relying on modern technological systems has always been one of the most important means used to mitigate the negative effects of crises facing the economies of countries, especially if these systems are harmonized and integrated to achieve a competitive advantage for the company and improve operational effectiveness. The aim of this study is to measure the impact of harmonizing activity-based-costing system with enterprise resource planning in improving the operational effectiveness of manufacturing companies listed on the Amman Stock Exchange by implementing industry type as a mediating variable. In order to achieve the study objectives, a designed questionnaire was developed and distributed to specialists in the accounting department, enterprise resource planning system managers, and costing managers within the study population. The study revealed that industry type as a mediating variable has modified the role of enterprise resource planning system integration with the activity-based-costing system in improving operations effectiveness, especially in the food, supplies, and agricultural sectors, and it is recommended for managers to develop and improve their current systems by attracting software specialists to build the integration between information systems. © 2022 IEEE.
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The condition of manufacturing companies that experienced a bad impact due to the weak value of operational activities resulted in a decrease in company profits so that the impact on the portion of corporate social responsibility disclosure was reduced. The Covid-19 pandemic has caused several manufacturing companies to be unable to generate profits that have been determined at the General Meeting of Shareholders (GMS) so that the return on investment is lower. This study aims to examine in depth the systematic risk that will affect stock returns in changing the relationship between investor sentiment, trading activity, market factors and stock return responses during the Covid 19 Pandemic. The population used in this study are manufacturing companies listed on the Indonesia Stock Exchange. as many as 169 companies. Of the 169 companies listed on the Indonesia Stock Exchange, there were 39 companies that were delisted during 2020 and 45 companies that did not have complete data on the required research variables, so the number of sample companies used was 85 companies. The data analysis technique uses Structural Equation Modeling (SEM) analysis with PLS smart software. The results of the study show that CSR has a negative effect on ROA with a significance level of 0.000. CSR has a positive effect on stock returns with a significance level of 0.000. ROA has a positive effect on Stock Return with a significance level of 0.000.
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In the past year, the global COVID-19 pandemic has caused an unprecedented impact on our lives. In manufacturing, strict lock-down due to the pandemic have also disrupted the business operations of manufacturing companies. From literature, there are limited studies that explore the impact of the pandemic towards manufacturing related companies in various aspects. This study attempts to answer what constitute the main challenge for these companies and the associated response strategies to overcome the challenge. A survey was conducted at a manufacturing trade exhibition that involved in-depth interviews with representatives from 22 manufacturing related companies. The outcomes of this study reveal that declining sales and marketing activities, difficulties in performing business meeting and lock-down measures are the top three challenges. Main response strategies for these companies are the adoption of ICT tools for virtual business processes, with proactive business change and diversification measures such as automation. The results of this study indicate the importance of automation and digitalization towards resilience and adaptability of manufacturing related companies against the impacts of the pandemic. © 2021 IEEE.
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The COVID-19 outbreak that began at the end of 2019 brought a crisis impact on the health sector and other sectors such as the economy, social and politics. Human resource problems that emerged as a result of the pandemic made every company strive to protect employee safety. The food and beverage sector is one of the industries maintained to continue operating despite the large-scale social restrictions imposed in several regions, including an instant food company in East Java. This study aims to identify and determine human resource risk control to support employee productivity during the COVID-19 pandemic. This research used qualitative data based obtained through interviews, observation, and documentation. The method in this study used a combination of Failure Mode Effect Analysis (FMEA) and Bow Tie to identify, measure, and anticipate the risk of COVID-19 transmission in the company. The output result of the Failure Mode Effect Analysis (FMEA) method is the Risk Priority Number (RPN) score. The three activities with the highest RPN value were health services at the polyclinic, employee meal activities in the canteen, and activities inside and outside the factory. This analysis's results were continued by using the Bow Tie method to identify the causes, prevention, impact, and recovery of these risks. Bow Tie analysis results formed the basis for the preparation of Corrective Action and Preventive Action (CAPA). The risk control of human resources is focused on increasing employee productivity by reducing days lost due to labor shortages. In the end, the study results are expected to become recommendations in the evaluation of risk control and preventive measures for COVID-19 in manufacturing companies.