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Unpacking the coexistence between improvement and innovation in world-class manufacturing: A dynamic capability approach

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  • Furlan, Andrea
  • Vinelli, Andrea

Abstract

Recent contributions in management and organizational literature call for research to investigate how companies can simultaneously pursue initiatives of improvement and innovation. Questions also remain about the extent to which a commitment to continuous improvement hinders innovation. Blending organizational literature with lean management literature on Just in Time, we propose a model that shows how improvement and innovation can co-exist within the same manufacturing plant. We test our hypotheses on an international database using structural equation modelling. Findings show that improvement and innovation coexist within those plants that nurture a supportive organizational context and implement JIT at the same time. While a supportive organizational context is necessary for the coexistence of innovation and improvement, JIT acts as a catalyst that provides resources to innovation activities and incentivizes the firm to replace ill-designed products and processes. Our study offers original contributions that lie at the intersection of operations management and organizational literatures.

Suggested Citation

  • Furlan, Andrea & Vinelli, Andrea, 2018. "Unpacking the coexistence between improvement and innovation in world-class manufacturing: A dynamic capability approach," Technological Forecasting and Social Change, Elsevier, vol. 133(C), pages 168-178.
    • Handle: RePEc:eee:tefoso:v:133:y:2018:i:c:p:168-178
    DOI: 10.1016/j.techfore.2018.03.022
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    Citations

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    Cited by:

    1. 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).
    2. Abdul Majid & Muhammad Yasir & Muhammad Yasir & Zahid Yousaf, 2021. "Network capability and strategic performance in SMEs: the role of strategic flexibility and organizational ambidexterity," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(4), pages 587-610, December.
    3. Shao, Xue-Feng & Liu, Wei & Li, Yi & Chaudhry, Hassan Rauf & Yue, Xiao-Guang, 2021. "Multistage implementation framework for smart supply chain management under industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    4. Benny Lianto, 2023. "Identifying Key Assessment Factors for a Company’s Innovation Capability Based on Intellectual Capital: An Application of the Fuzzy Delphi Method," Sustainability, MDPI, vol. 15(7), pages 1-21, March.
    5. Jorge Iván Pérez-Rave & Rafael Fernández Guerrero & Andrés Salas Vallina & Favián González Echavarría, 2023. "A measurement model of dynamic capabilities of the continuous improvement project and its role in the renewal of the company’s products/services," Operations Management Research, Springer, vol. 16(1), pages 126-140, March.
    6. Kumar, Mukesh & Tsolakis, Naoum & Agarwal, Anshul & Srai, Jagjit Singh, 2020. "Developing distributed manufacturing strategies from the perspective of a product-process matrix," International Journal of Production Economics, Elsevier, vol. 219(C), pages 1-17.

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