IDEAS home Printed from https://ideas.repec.org/a/spr/sjobre/v76y2024i4d10.1007_s41471-024-00202-5.html
   My bibliography  Save this article

How Digital Twins Impact Responsiveness: A Dynamic Fit Approach to Information Processing for High-Involvement Product Demand Management

Author

Listed:
  • Dominik Oehlschläger

    (Bundeswehr University Munich)

  • Andreas H. Glas

    (Bundeswehr University Munich)

  • Michael Eßig

    (Bundeswehr University Munich)

Abstract

In an era of rapidly evolving customer demands and technological advancements, organisations face mounting pressure to enhance their responsiveness. Digital Twins offer novel capabilities by providing comprehensive transparency on customer demands through dynamic and interactive links between real-world entities and their digital counterparts. As a result, Digital Twins have the potential to enable organisations to respond more swiftly and effectively to fluctuating customer demands across volume, process, and product dimensions. However, Digital Twins still lack empirical explorations and theoretical embedment, leading to conceptual ambiguity. Through a case study approach, the study integrates Digital Twins into the framework of Organisational Information Processing Theory (OIPT). Empirical evidence proposes that Digital Twins offer a spectrum of capabilities rather than a one-size-fits-all solution. The findings further emphasise the need for aligning Digital Twin sophistication levels with Information Processing Needs and Constraints, highlighting that the dynamic interplay between Digital Twin advancements, Information Processing Constraints, and Information Processing Capabilities creates a dynamic cycle of adaptation and optimisation. On the whole, the study presents four key implications: (1) Awareness about the versatile application areas of Digital Twins is created. (2) The positive impact of Digital Twins on volume, process, and product responsiveness is outlined. (3) The concept of Information Processing Constraints is introduced to OIPT. And (4) a dynamic cycle of aligning Digital Twin sophistication with Information Processing Capabilities and Constraints is suggested. Therefore, the study contributes not only to a deeper understanding of Digital Twins in demand management but also proposes a new dynamic fit perspective on OIPT.

Suggested Citation

  • Dominik Oehlschläger & Andreas H. Glas & Michael Eßig, 2024. "How Digital Twins Impact Responsiveness: A Dynamic Fit Approach to Information Processing for High-Involvement Product Demand Management," Schmalenbach Journal of Business Research, Springer, vol. 76(4), pages 661-706, December.
    • Handle: RePEc:spr:sjobre:v:76:y:2024:i:4:d:10.1007_s41471-024-00202-5
    DOI: 10.1007/s41471-024-00202-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s41471-024-00202-5
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1007/s41471-024-00202-5?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
    ---><---

    References listed on IDEAS

    as
    1. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    2. Rameshwar Dubey & Angappa Gunasekaran & David J. Bryde & Yogesh K. Dwivedi & Thanos Papadopoulos, 2020. "Blockchain technology for enhancing swift-trust, collaboration and resilience within a humanitarian supply chain setting," International Journal of Production Research, Taylor & Francis Journals, vol. 58(11), pages 3381-3398, June.
    3. William G Egelhoff, 1991. "Information-Processing Theory and the Multinational Enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(3), pages 341-368, September.
    4. Vinay Surendra Yadav & Abhijit Majumdar, 2024. "What impedes digital twin from revolutionizing agro-food supply chain? Analysis of barriers and strategy development for mitigation," Operations Management Research, Springer, vol. 17(2), pages 711-727, June.
    5. Richard L. Daft & Robert H. Lengel, 1986. "Organizational Information Requirements, Media Richness and Structural Design," Management Science, INFORMS, vol. 32(5), pages 554-571, May.
    6. Swafford, Patricia M. & Ghosh, Soumen & Murthy, Nagesh, 2008. "Achieving supply chain agility through IT integration and flexibility," International Journal of Production Economics, Elsevier, vol. 116(2), pages 288-297, December.
    7. Valerie Graf-Drasch & Maximilian Röglinger & Annette Wenninger & Sabiölla Hosseini, 2022. "A Contextualized Acceptance Model for Proactive Smart Services," Schmalenbach Journal of Business Research, Springer, vol. 74(3), pages 345-387, September.
    8. Rantala, Tero & Ukko, Juhani & Nasiri, Mina & Saunila, Minna, 2023. "Shifting focus of value creation through industrial digital twins—From internal application to ecosystem-level utilization," Technovation, Elsevier, vol. 125(C).
    9. Dmitry Ivanov & Alexandre Dolgui & Boris Sokolov, 2019. "The impact of digital technology and Industry 4.0 on the ripple effect and supply chain risk analytics," International Journal of Production Research, Taylor & Francis Journals, vol. 57(3), pages 829-846, February.
    10. Jay R. Galbraith, 1974. "Organization Design: An Information Processing View," Interfaces, INFORMS, vol. 4(3), pages 28-36, May.
    11. Barbara B. Flynn & Xenophon Koufteros & Guanyi Lu, 2016. "On Theory in Supply Chain Uncertainty and its Implications for Supply Chain Integration," Journal of Supply Chain Management, Institute for Supply Management, vol. 52(3), pages 3-27, July.
    12. Parmar, Rashik & Leiponen, Aija & Thomas, Llewellyn D.W., 2020. "Building an organizational digital twin," Business Horizons, Elsevier, vol. 63(6), pages 725-736.
    13. Ravi Srinivasan & Morgan Swink, 2018. "An Investigation of Visibility and Flexibility as Complements to Supply Chain Analytics: An Organizational Information Processing Theory Perspective," Production and Operations Management, Production and Operations Management Society, vol. 27(10), pages 1849-1867, October.
    14. M. Bensaou & N. Venkatraman, 1995. "Configurations of Interorganizational Relationships: A Comparison Between U.S. and Japanese Automakers," Management Science, INFORMS, vol. 41(9), pages 1471-1492, September.
    15. Christian Busse & Jan Meinlschmidt & Kai Foerstl, 2017. "Managing Information Processing Needs in Global Supply Chains: A Prerequisite to Sustainable Supply Chain Management," Journal of Supply Chain Management, Institute for Supply Management, vol. 53(1), pages 87-113, January.
    16. Ivanov, Dmitry, 2023. "Intelligent digital twin (iDT) for supply chain stress-testing, resilience, and viability," International Journal of Production Economics, Elsevier, vol. 263(C).
    17. Da Silveira, Giovani & Borenstein, Denis & Fogliatto, Flavio S., 2001. "Mass customization: Literature review and research directions," International Journal of Production Economics, Elsevier, vol. 72(1), pages 1-13, June.
    18. Prajogo, Daniel & Olhager, Jan, 2012. "Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration," International Journal of Production Economics, Elsevier, vol. 135(1), pages 514-522.
    19. Dmitry Ivanov & Ajay Das, 2020. "Coronavirus (COVID-19/SARS-CoV-2) and supply chain resilience: a research note," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 13(1), pages 90-102.
    20. Felipe Caro & Jérémie Gallien, 2007. "Dynamic Assortment with Demand Learning for Seasonal Consumer Goods," Management Science, INFORMS, vol. 53(2), pages 276-292, February.
    21. Gunasekaran, Angappa & Lai, Kee-hung & Edwin Cheng, T.C., 2008. "Responsive supply chain: A competitive strategy in a networked economy," Omega, Elsevier, vol. 36(4), pages 549-564, August.
    22. Kim, Jiyeon & Forsythe, Sandra, 2008. "Adoption of Virtual Try-on technology for online apparel shopping," Journal of Interactive Marketing, Elsevier, vol. 22(2), pages 45-59.
    23. Gunasekaran, A. & Ngai, E. W. T., 2004. "Information systems in supply chain integration and management," European Journal of Operational Research, Elsevier, vol. 159(2), pages 269-295, December.
    24. Saporiti, Nicolò & Cannas, Violetta Giada & Pozzi, Rossella & Rossi, Tommaso, 2023. "Challenges and countermeasures for digital twin implementation in manufacturing plants: A Delphi study," International Journal of Production Economics, Elsevier, vol. 261(C).
    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. Georg Reischauer & Thomas Hess & Thorsten Sellhorn & Erik Theissen, 2024. "Transparency in an Age of Digitalization and Responsibility," Schmalenbach Journal of Business Research, Springer, vol. 76(4), pages 483-494, December.

    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. Li Cui & Hao Wu & Lin Wu & Ajay Kumar & Kim Hua Tan, 2023. "Investigating the relationship between digital technologies, supply chain integration and firm resilience in the context of COVID-19," Annals of Operations Research, Springer, vol. 327(2), pages 825-853, August.
    2. Winkler, Jens & Kuklinski, Christian Paul Jian-Wei & Moser, Roger, 2015. "Decision making in emerging markets: The Delphi approach's contribution to coping with uncertainty and equivocality," Journal of Business Research, Elsevier, vol. 68(5), pages 1118-1126.
    3. Dubey, Rameshwar & Gunasekaran, Angappa & Papadopoulos, Thanos, 2024. "Benchmarking operations and supply chain management practices using Generative AI: Towards a theoretical framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 189(C).
    4. Oh, Jaeyoung & In, Joonhwan, 2023. "Supplier involvement and supplier performance in new product development: Moderating effects of supplier salesperson behaviors," Journal of Business Research, Elsevier, vol. 161(C).
    5. Moser, Roger & Kuklinski, Christian Paul Jian-Wei & Srivastava, Mohit, 2017. "Information processing fit in the context of emerging markets: An analysis of foreign SBUs in China," Journal of Business Research, Elsevier, vol. 70(C), pages 234-247.
    6. Yutong Liu & Jian Du & Taewon Kang & Mingu Kang, 2024. "Establishing supply chain transparency and its impact on supply chain risk management and resilience," Operations Management Research, Springer, vol. 17(3), pages 1157-1171, September.
    7. Frederik Dahlmann & Jens K. Roehrich, 2019. "Sustainable supply chain management and partner engagement to manage climate change information," Business Strategy and the Environment, Wiley Blackwell, vol. 28(8), pages 1632-1647, December.
    8. Madduma Kaluge Chamitha Sanjani Wijewickrama & Nicholas Chileshe & Raufdeen Rameezdeen & Jose Jorge Ochoa, 2022. "Information Processing for Quality Assurance in Reverse Logistics Supply Chains: An Organizational Information Processing Theory Perspective," Sustainability, MDPI, vol. 14(9), pages 1-31, May.
    9. David C. Hall & Tracy D. Johnson-Hall, 2021. "The value of downstream traceability in food safety management systems: an empirical examination of product recalls," Operations Management Research, Springer, vol. 14(1), pages 61-77, June.
    10. Emilia Vann Yaroson & Soumyadeb Chowdhury & Sachin Kumar Mangla & Prasanta Kumar Dey, 2024. "Unearthing the interplay between organisational resources, knowledge and industry 4.0 analytical decision support tools to achieve sustainability and supply chain wellbeing," Annals of Operations Research, Springer, vol. 342(2), pages 1321-1368, November.
    11. Behl, Abhishek & Gaur, Jighyasu & Pereira, Vijay & Yadav, Rambalak & Laker, Benjamin, 2022. "Role of big data analytics capabilities to improve sustainable competitive advantage of MSME service firms during COVID-19 – A multi-theoretical approach," Journal of Business Research, Elsevier, vol. 148(C), pages 378-389.
    12. Gunasekaran, Angappa & Subramanian, Nachiappan & Papadopoulos, Thanos, 2017. "Information technology for competitive advantage within logistics and supply chains: A review," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 99(C), pages 14-33.
    13. Shivam Gupta & Vinayak A. Drave & Surajit Bag & Zongwei Luo, 2019. "Leveraging Smart Supply Chain and Information System Agility for Supply Chain Flexibility," Information Systems Frontiers, Springer, vol. 21(3), pages 547-564, June.
    14. Rameshwar Dubey & David J. Bryde & Cyril Foropon & Gary Graham & Mihalis Giannakis & Deepa Bhatt Mishra, 2022. "Agility in humanitarian supply chain: an organizational information processing perspective and relational view," Annals of Operations Research, Springer, vol. 319(1), pages 559-579, December.
    15. Xinwei Li & Wenjuan Zeng & Mao Xu, 2022. "The Moderating Role of IT Capability on Green Innovation and Ambidexterity: Towards a Corporate Sustainable Development," Sustainability, MDPI, vol. 14(24), pages 1-20, December.
    16. Shivam Gupta & Sachin Modgil & Piera Centobelli & Roberto Cerchione & Serena Strazzullo, 2022. "Additive Manufacturing and Green Information Systems as Technological Capabilities for Firm Performance," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(4), pages 515-534, December.
    17. Roger Moser & Srinath Rengarajan & Gopalakrishnan Narayanamurthy, 2021. "Decision Intelligence: Creating a Fit between Intelligence Requirements and Intelligence Processing Capacities," IIM Kozhikode Society & Management Review, , vol. 10(2), pages 160-177, July.
    18. Madduma Kaluge Chamitha Sanjani Wijewickrama & Nicholas Chileshe & Raufdeen Rameezdeen & Jose Jorge Ochoa, 2021. "Minimizing Macro-Level Uncertainties for Quality Assurance in Reverse Logistics Supply Chains of Demolition Waste," Sustainability, MDPI, vol. 13(23), pages 1-35, November.
    19. Roßmann, Bernhard & Canzaniello, Angelo & von der Gracht, Heiko & Hartmann, Evi, 2018. "The future and social impact of Big Data Analytics in Supply Chain Management: Results from a Delphi study," Technological Forecasting and Social Change, Elsevier, vol. 130(C), pages 135-149.
    20. Maiga, Adam S. & Nilsson, Anders & Ax, Christian, 2015. "Relationships between internal and external information systems integration, cost and quality performance, and firm profitability," International Journal of Production Economics, Elsevier, vol. 169(C), pages 422-434.

    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:spr:sjobre:v:76:y:2024:i:4:d:10.1007_s41471-024-00202-5. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.