IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v267y2024ics0925527323003109.html
   My bibliography  Save this article

Intelligent manufacturing for strengthening operational resilience during the COVID-19 pandemic: A dynamic capability theory perspective

Author

Listed:
  • Xi, Mengjie
  • Liu, Yang
  • Fang, Wei
  • Feng, Taiwen

Abstract

The occurrence of unexpected crises, such as the COVID-19 pandemic, creates a serious disruption in business operations, causing many companies to reassess the way they operate and seek new ways to enhance efficiency and resilience. Intelligent manufacturing may provide greater flexibility and adaptability, but less is known about whether and how intelligent manufacturing improved operational resilience during the COVID-19 pandemic. The present study aims to address this gap in knowledge by comparing the operational resilience before and after the pandemic between companies that adopted intelligent manufacturing and those that did not. Drawing upon dynamic capability theory, this study explores the impact of intelligent manufacturing on operational resilience via ambidextrous capability during the COVID-19 pandemic, as well as the moderating role of managerial myopia. To test hypotheses, this study used the difference-in-differences (DID) approach by collecting 3960 observations from 1980 Chinese listed companies in 2019–2020. The findings suggest that intelligent manufacturing aids companies in developing operational resilience in times of crisis. It also enables companies to develop ambidextrous capability which further enhances operational resilience. However, managerial myopia tends to weaken the positive effect of intelligent manufacturing on operational resilience. The findings extend the current understanding of enhancing operational resilience and provide insights for companies to adopt intelligent manufacturing to improve their operational resilience during disruptive times.

Suggested Citation

  • Xi, Mengjie & Liu, Yang & Fang, Wei & Feng, Taiwen, 2024. "Intelligent manufacturing for strengthening operational resilience during the COVID-19 pandemic: A dynamic capability theory perspective," International Journal of Production Economics, Elsevier, vol. 267(C).
  • Handle: RePEc:eee:proeco:v:267:y:2024:i:c:s0925527323003109
    DOI: 10.1016/j.ijpe.2023.109078
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527323003109
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ijpe.2023.109078?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. D. Bianco & A. Bueno & Moacir Godinho Filho & H. Latan & G. Miller Devós Ganga & A.G. Frank & C.J. Chiappetta Jabbour, 2023. "The Role of Industry 4.0 in Developing Resilience for Manufacturing Companies during COVID-19," Post-Print hal-04277168, HAL.
    2. Alexandre Dolgui & Dmitry Ivanov & Boris Sokolov, 2020. "Reconfigurable supply chain: the X-network," International Journal of Production Research, Taylor & Francis Journals, vol. 58(13), pages 4138-4163, July.
    3. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    4. Shaojian Chen & Hui Mao & Junqin Sun, 2022. "Low-Carbon City Construction and Corporate Carbon Reduction Performance: Evidence From a Quasi-Natural Experiment in China," Journal of Business Ethics, Springer, vol. 180(1), pages 125-143, September.
    5. Chen, Daqiang & Sun, Danzhi & Yin, Yunqiang & Dhamotharan, Lalitha & Kumar, Ajay & Guo, Yihan, 2022. "The resilience of logistics network against node failures," International Journal of Production Economics, Elsevier, vol. 244(C).
    6. Nikolopoulos, Konstantinos & Punia, Sushil & Schäfers, Andreas & Tsinopoulos, Christos & Vasilakis, Chrysovalantis, 2021. "Forecasting and planning during a pandemic: COVID-19 growth rates, supply chain disruptions, and governmental decisions," European Journal of Operational Research, Elsevier, vol. 290(1), pages 99-115.
    7. Essuman, Dominic & Bruce, Patience Aku & Ataburo, Henry & Asiedu-Appiah, Felicity & Boso, Nathaniel, 2022. "Linking resource slack to operational resilience: Integration of resource-based and attention-based perspectives," International Journal of Production Economics, Elsevier, vol. 254(C).
    8. Amine Belhadi & Sachin S. Kamble & Venkatesh Mani & Charbel Jose Chiappetta Jabbour & Imane Benkhati, 2022. "Building supply chain resilience and efficiency through additive manufacturing : An ambidextrous perspective on the dynamic capability view," Post-Print hal-04325568, HAL.
    9. Essuman, Dominic & Boso, Nathaniel & Annan, Jonathan, 2020. "Operational resilience, disruption, and efficiency: Conceptual and empirical analyses," International Journal of Production Economics, Elsevier, vol. 229(C).
    10. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    11. Hwan Joo Seo & Sung Jin Kang & Yong Jun Baek, 2020. "Managerial myopia and short-termism of innovation strategy: Financialisation of Korean firms," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 44(6), pages 1197-1220.
    12. Ye, Fei & Ouyang, You & Li, Yina, 2023. "Digital investment and environmental performance: The mediating roles of production efficiency and green innovation," International Journal of Production Economics, Elsevier, vol. 259(C).
    13. Yu Han & Woon Kian Chong & Dong Li, 2020. "A systematic literature review of the capabilities and performance metrics of supply chain resilience," International Journal of Production Research, Taylor & Francis Journals, vol. 58(15), pages 4541-4566, July.
    14. Taiwen Feng & Hongyan Sheng, 2023. "Identifying the equifinal configurations of prompting green supply chain integration and subsequent performance outcome," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5234-5251, December.
    15. Li, Cheng, 2019. "Informational benefits of managerial myopia," Economics Letters, Elsevier, vol. 185(C).
    16. Stefan Dimitriadis, 2021. "Social capital and entrepreneur resilience: Entrepreneur performance during violent protests in Togo," Strategic Management Journal, Wiley Blackwell, vol. 42(11), pages 1993-2019, November.
    17. Bisaro, Alexander & Roggero, Matteo & Villamayor-Tomas, Sergio, 2018. "Institutional Analysis in Climate Change Adaptation Research: A Systematic Literature Review," Ecological Economics, Elsevier, vol. 151(C), pages 34-43.
    18. Guo, Xiaochuan & Li, Mengmeng & Wang, Yanlin & Mardani, Abbas, 2023. "Does digital transformation improve the firm’s performance? From the perspective of digitalization paradox and managerial myopia," Journal of Business Research, Elsevier, vol. 163(C).
    19. Jeremy C. Stein, 1989. "Efficient Capital Markets, Inefficient Firms: A Model of Myopic Corporate Behavior," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 104(4), pages 655-669.
    20. Hongyan Sheng & Taiwen Feng & Ling Liu, 2023. "The influence of digital transformation on low-carbon operations management practices and performance: does CEO ambivalence matter?," International Journal of Production Research, Taylor & Francis Journals, vol. 61(18), pages 6215-6229, September.
    21. Xie, Xuemei & Han, Yuhang & Hoang, Thu Thao, 2022. "Can green process innovation improve both financial and environmental performance? The roles of TMT heterogeneity and ownership," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    22. Dalenogare, Lucas Santos & Benitez, Guilherme Brittes & Ayala, Néstor Fabián & Frank, Alejandro Germán, 2018. "The expected contribution of Industry 4.0 technologies for industrial performance," International Journal of Production Economics, Elsevier, vol. 204(C), pages 383-394.
    23. Chong Chen & Yongsi He & Kai Wang & Shuo Yan, 2022. "The Impact of early-life Natural Disaster Experiences on the Corporate Innovation by CEOs," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(14), pages 3953-3975, November.
    24. Büchi, Giacomo & Cugno, Monica & Castagnoli, Rebecca, 2020. "Smart factory performance and Industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    25. Bianco, Débora & Bueno, Adauto & Godinho Filho, Moacir & Latan, Hengky & Miller Devós Ganga, Gilberto & Frank, Alejandro G. & Chiappetta Jabbour, Charbel Jose, 2023. "The role of Industry 4.0 in developing resilience for manufacturing companies during COVID-19," International Journal of Production Economics, Elsevier, vol. 256(C).
    26. Sheng, Xin & Guo, Songlin & Chang, Xiaochen, 2022. "Managerial myopia and firm productivity: Evidence from China," Finance Research Letters, Elsevier, vol. 49(C).
    27. María Iborra & Vicente Safón & Consuelo Dolz, 2022. "Does ambidexterity consistency benefit small and medium-sized enterprises’ resilience?," Journal of Small Business Management, Taylor & Francis Journals, vol. 60(5), pages 1122-1165, September.
    28. Parast, Mahour M., 2022. "Toward a contingency perspective of organizational and supply chain resilience," International Journal of Production Economics, Elsevier, vol. 250(C).
    29. Wanyi Chen & Liguang Zhang & Pinyan Jiang & Fanli Meng & Qianyi Sun, 2022. "Can digital transformation improve the information environment of the capital market? Evidence from the analysts' prediction behaviour," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(2), pages 2543-2578, June.
    30. Guo, Shu & Choi, Tsan-Ming & Shen, Bin, 2020. "Green product development under competition: A study of the fashion apparel industry," European Journal of Operational Research, Elsevier, vol. 280(2), pages 523-538.
    31. Frank, Alejandro Germán & Dalenogare, Lucas Santos & Ayala, Néstor Fabián, 2019. "Industry 4.0 technologies: Implementation patterns in manufacturing companies," International Journal of Production Economics, Elsevier, vol. 210(C), pages 15-26.
    32. Belhadi, Amine & Kamble, Sachin S. & Venkatesh, Mani & Chiappetta Jabbour, Charbel Jose & Benkhati, Imane, 2022. "Building supply chain resilience and efficiency through additive manufacturing: An ambidextrous perspective on the dynamic capability view," International Journal of Production Economics, Elsevier, vol. 249(C).
    33. O'Reilly, Charles A., III & Tushman, Michael L., 2013. "Organizational Ambidexterity: Past, Present and Future," Research Papers 2130, Stanford University, Graduate School of Business.
    34. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    35. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    36. Dormady, Noah & Roa-Henriquez, Alfredo & Rose, Adam, 2019. "Economic resilience of the firm: A production theory approach," International Journal of Production Economics, Elsevier, vol. 208(C), pages 446-460.
    37. Joon Mahn Lee & Jung Chul Park & Timothy B. Folta, 2018. "CEO career horizon, corporate governance, and real options: The role of economic short‐termism," Strategic Management Journal, Wiley Blackwell, vol. 39(10), pages 2703-2725, October.
    38. Tava Lennon Olsen & Brian Tomlin, 2020. "Industry 4.0: Opportunities and Challenges for Operations Management," Manufacturing & Service Operations Management, INFORMS, vol. 22(1), pages 113-122, January.
    39. repec:dau:papers:123456789/9071 is not listed on IDEAS
    40. Zhuo, Chengfeng & Chen, Jin, 2023. "Can digital transformation overcome the enterprise innovation dilemma: Effect, mechanism and effective boundary," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    41. Tortorella, Guilherme Luz & Cawley Vergara, Alejandro Mac & Garza-Reyes, Jose Arturo & Sawhney, Rapinder, 2020. "Organizational learning paths based upon industry 4.0 adoption: An empirical study with Brazilian manufacturers," International Journal of Production Economics, Elsevier, vol. 219(C), pages 284-294.
    42. Qing Cao & Eric Gedajlovic & Hongping Zhang, 2009. "Unpacking Organizational Ambidexterity: Dimensions, Contingencies, and Synergistic Effects," Organization Science, INFORMS, vol. 20(4), pages 781-796, August.
    43. Pam Manhart & James K. Summers & Jennifer Blackhurst, 2020. "A Meta‐Analytic Review of Supply Chain Risk Management: Assessing Buffering and Bridging Strategies and Firm Performance," Journal of Supply Chain Management, Institute for Supply Management, vol. 56(3), pages 66-87, July.
    44. Andrew Burton-Jones & Allen S. Lee, 2017. "Thinking About Measures and Measurement in Positivist Research: A Proposal for Refocusing on Fundamentals," Information Systems Research, INFORMS, vol. 28(3), pages 451-467, September.
    45. Gastaldi, Luca & Lessanibahri, Sina & Tedaldi, Gianluca & Miragliotta, Giovanni, 2022. "Companies’ adoption of Smart Technologies to achieve structural ambidexterity: an analysis with SEM," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    46. Andrew Kusiak, 2018. "Smart manufacturing," International Journal of Production Research, Taylor & Francis Journals, vol. 56(1-2), pages 508-517, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Taiwen Feng & Zhihui Si & Wenbo Jiang & Jianyu Tan, 2024. "Supply chain transformational leadership and resilience: the mediating role of ambidextrous business model," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    2. Xiaoli Guo & Weili Xia & Taiwen Feng & Jianyu Tan & Fenggang Xian, 2024. "Blockchain technology adoption and sustainable supply chain finance: The perspective of information processing theory," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3614-3632, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhao, Nanyang & Hong, Jiangtao & Lau, Kwok Hung, 2023. "Impact of supply chain digitalization on supply chain resilience and performance: A multi-mediation model," International Journal of Production Economics, Elsevier, vol. 259(C).
    2. Björn Remneland Wikhamn & Alexander Styhre & Jan Ljungberg & Anna Maria Szczepanska, 2016. "Exploration Vs. Exploitation And How Video Game Developers Are Able To Combine The Two," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(06), pages 1-20, August.
    3. Ashrafi, Amir & Zareravasan, Ahad, 2022. "An ambidextrous approach on the business analytics-competitive advantage relationship: Exploring the moderating role of business analytics strategy," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    4. Gastaldi, Luca & Lessanibahri, Sina & Tedaldi, Gianluca & Miragliotta, Giovanni, 2022. "Companies’ adoption of Smart Technologies to achieve structural ambidexterity: an analysis with SEM," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    5. Lin, Hsing-Er & Hsu, I-Chieh & Hsu, Audrey Wenhsin & Chung, Hsi-Mei, 2020. "Creating competitive advantages: Interactions between ambidextrous diversification strategy and contextual factors from a dynamic capability perspective," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    6. José Andrade & Mário Franco & Luis Mendes, 2021. "Technological capacity and organisational ambidexterity: the moderating role of environmental dynamism on Portuguese technological SMEs," Review of Managerial Science, Springer, vol. 15(7), pages 2111-2136, October.
    7. Michael Yao-Ping Peng & Ku-Ho Lin & Dennis Liute Peng & Peihua Chen, 2019. "Linking Organizational Ambidexterity and Performance: The Drivers of Sustainability in High-Tech Firms," Sustainability, MDPI, vol. 11(14), pages 1-17, July.
    8. Liu, Yi & Liao, Yonghai & Li, Yuan, 2018. "Capability configuration, ambidexterity and performance: Evidence from service outsourcing sector," International Journal of Production Economics, Elsevier, vol. 200(C), pages 343-352.
    9. Tamayo-Torres, Javier & Gutierrez-Gutierrez, Leopoldo & Ruiz-Moreno, Antonia, 2014. "The relationship between exploration and exploitation strategies, manufacturing flexibility and organizational learning: An empirical comparison between Non-ISO and ISO certified firms," European Journal of Operational Research, Elsevier, vol. 232(1), pages 72-86.
    10. Jorge Ferreira & Sofia Cardim & Arnaldo Coelho, 2021. "Dynamic Capabilities and Mediating Effects of Innovation on the Competitive Advantage and Firm’s Performance: the Moderating Role of Organizational Learning Capability," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 620-644, June.
    11. Roh, Taewoo & Xiao, Shufeng (Simon) & Park, Byung Il, 2024. "MNEs' capabilities and their sustainable business in emerging markets: Evidence from MNE subsidiaries in China," Journal of International Management, Elsevier, vol. 30(1).
    12. Buccieri, Dominic & Javalgi, Raj G. & Cavusgil, Erin, 2020. "International new venture performance: Role of international entrepreneurial culture, ambidextrous innovation, and dynamic marketing capabilities," International Business Review, Elsevier, vol. 29(2).
    13. Bag, Surajit & Gupta, Shivam & Kumar, Sameer, 2021. "Industry 4.0 adoption and 10R advance manufacturing capabilities for sustainable development," International Journal of Production Economics, Elsevier, vol. 231(C).
    14. Oliveira-Dias, Diéssica de & Maqueira-Marin, Juan Manuel & Moyano-Fuentes, José & Carvalho, Helena, 2023. "Implications of using Industry 4.0 base technologies for lean and agile supply chains and performance," International Journal of Production Economics, Elsevier, vol. 262(C).
    15. Yuan, Chun & Xue, Doudou & He, Xin, 2021. "A balancing strategy for ambidextrous learning, dynamic capabilities, and business model design, the opposite moderating effects of environmental dynamism," Technovation, Elsevier, vol. 103(C).
    16. Laubengaier, Désirée A. & Cagliano, Raffaella & Canterino, Filomena, 2022. "It Takes Two to Tango: Analyzing the Relationship between Technological and Administrative Process Innovations in Industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    17. Shamim, Saqib & Zeng, Jing & Shafi Choksy, Umair & Shariq, Syed Muhammad, 2020. "Connecting big data management capabilities with employee ambidexterity in Chinese multinational enterprises through the mediation of big data value creation at the employee level," International Business Review, Elsevier, vol. 29(6).
    18. Culot, Giovanna & Orzes, Guido & Sartor, Marco & Nassimbeni, Guido, 2020. "The future of manufacturing: A Delphi-based scenario analysis on Industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    19. Parisa Haim Faridian & Donald O Neubaum & Siri Terjesen & Roland E Kidwell, 2023. "The link between technical knowledge transfer in alliances and resource efficiency: ambidexterity in development of R&D and appropriation capabilities," The Journal of Technology Transfer, Springer, vol. 48(6), pages 2179-2203, December.
    20. Dubey, Rameshwar & Gunasekaran, Angappa & Childe, Stephen J. & Bryde, David J. & Giannakis, Mihalis & Foropon, Cyril & Roubaud, David & Hazen, Benjamin T., 2020. "Big data analytics and artificial intelligence pathway to operational performance under the effects of entrepreneurial orientation and environmental dynamism: A study of manufacturing organisations," International Journal of Production Economics, Elsevier, vol. 226(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:267:y:2024:i:c:s0925527323003109. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.