Journal of Operations Management

Globalization results in both pressure and drivers for Chinese enterprises to improve their environmental performance. As a developing country, China has to balance economic and environmental performance. Green supply chain management (GSCM) is emerging to be an important approach for Chinese enterprises to improve performance, possibly on both these dimensions. Using empirical results from 186 respondents on GSCM practice in Chinese manufacturing enterprises, we examine the relationships between GSCM practice and environmental and economic performance. Using moderated hierarchical regression analysis, we evaluate the general relationships between specific GSCM practices and performance. We then investigate how two primary types of management operations philosophies, quality management and just‐in‐time (or lean) manufacturing principles, influence the relationship between GSCM practices and performance. Significant findings were determined for a number of relationships. Managerial implications are also identified.

Lean production not only successfully challenged the accepted mass production practices in the automotive industry, significantly shifting the trade‐off between productivity and quality, but it also led to a rethinking of a wide range of manufacturing and service operations beyond the high‐volume repetitive manufacturing environment. The book ‘The machine that changed the World’ that introduced the term ‘lean production’ in 1990 has become one of the most widely cited references in operations management over the last decade. Despite the fact that the just‐in‐time (JIT) manufacturing concept had been known for almost a decade prior, the book played a key role in disseminating the concept outside of Japan. While the technical aspects of lean production have been widely discussed, this paper sets out to investigate the evolution of the research at the MIT International Motor Vehicle Program (IMVP) that led to the conception of the term ‘lean production’. Furthermore, the paper investigates why – despite the pre‐existing knowledge of JIT – the program was so influential in promoting the lean production concept. Based on iterating series of interviews with the key authors, contributors and researchers of the time, this paper presents an historical account of the research that led to the formulation and dissemination of one of the most influential manufacturing paradigms of recent times.

The partial least squares (PLS) approach to structural equation modeling (SEM) has been widely adopted in business research fields such as information systems, consumer behavior, and marketing. The use of PLS in the field of operations management is also growing. However, questions still exist among some operations management researchers regarding whether and how PLS should be used. To address these questions, our study provides a practical guideline for using PLS and uses examples from the operations management literature to demonstrate how the specific points in this guideline can be applied. In addition, our study reviews and summarizes the use of PLS in the recent operations management literature according to our guideline. The main contribution of this study is to present a practical guideline for evaluating and using PLS that is tailored to the operations management field.

This paper provides an in‐depth review of the different methods available for assessing the construct validity of measures used in empirical research. Construct validity pertains to the degree to which the measure of a construct sufficiently measures the intended concept (e.g., is free of measurement error) and has been shown to be a necessary component of the research process. In order to illustrate the steps required to establish construct validity, we drew upon empirical research in the operations management area of manufacturing flexibility.

The field of operations management has been criticized for the inadequacy of its theory. We suggest that this criticism may be too harsh, and further, that many building blocks of theory are prevalent in the body of existing research. This paper has two goals. The first is to suggest that careful organization of our thinking can lead to useful, productive theories in operations management that demonstrate all the hallmarks of the familiar theories of natural science. We discuss the nature of scientific inquiry in general terms, and examine the implications for what should be expected from theory in operations management. Our second goal is to illustrate through examples how such theories and their related laws might be developed. Two theories are proposed: the Theory of Swift, Even Flow, and the Theory of Performance Frontiers. The Theory of Swift, Even Flow addresses the phenomenon of cross‐factory productivity differences. The Theory of Performance Frontiers addresses the multiple dimensions of factory performance and seeks to unify prior statements regarding cumulative capabilities and trade‐offs. Implications drawn from the theories are discussed and concluding remarks suggest the advantages of future theory development and test.

Considering manufacturing strategy in its larger strategic context has been thematic in conceptual literature in operations but relatively neglected in empirical studies, thus leaving predominant conceptual models of manufacturing strategy largely untested. This research develops a conceptual model of manufacturing strategy from the literature and tests the model using data from a sample of manufacturers in three industries in the United States. This research contributes to manufacturing strategy literature in four ways. First, it supports empirically a model of manufacturing strategy that is predominant in the conceptual literature. Second, it demonstrates that the strategic linkages in manufacturing businesses are clearer among good performers than poor performers. Third, this research suggests that competitive strategy acts as a mediator between an organization's environment and its manufacturing strategy. Fourth, the findings suggest that the relationship between competitive strategy and performance is mediated by manufacturing strategy. These last two findings have important implications for approaching research in manufacturing strategy in the future.

A typical approach to studying capabilities in the operations management literature is to assess the intended or realized competitive operational performance and their contribution to business and organizational objectives. While it is crucial to identify the operational performance that helps create competitive advantage, it is equally important to understand the means for delivering the needed performance at the operational level. Drawing on the resource‐based view (RBV), we argue that routines are a critical source of operations capabilities and subsequently investigate operations capabilities by means of their underlying routines. Because a common problem to studying capabilities is the ambiguous and confusing definitions, we conduct an extensive literature review to address the semantic confusion among various definitions of capabilities and delineate it from other related terms. We identify improvement and innovation as two critical plant level capabilities, each consisting of a bundle of interrelated yet distinct routines. We then empirically measure the two capabilities as second‐order latent variables and estimate their effects on a set of operational performance measures. The results suggest that routines form internally consistent bundles which are significantly related to operational performance. This supports our notion of “capabilities as routine bundles” that are difficult to imitate and thus a source of competitive advantage.

Research related to the natural environment in operations management is still in its infancy. The relatively few studies to date have primarily emphasized environmental issues relating to process technologies, quality, new product development, and supply chain management. This paper reports on the work of a focus group of environmental and operations management researchers, which generated a broad framework useful for identifying fruitful research opportunities. This framework is structured along two dimensions: level of analysis and process of environmental improvement. Research areas identified by the focus group to be most promising subsequently were mapped onto this framework. Strong opportunities for building our understanding of environmental issues and improving practice are evident in the areas of manufacturing strategy, quality, supply chain management, and technology management. Research on intra‐ and inter‐firm diffusion of best practices, environmental technology investment and transfer, and measurement of environmental performance promises to lead to a more integrative view of environmental operations management.

Supply chains are increasingly vulnerable to catastrophic events such as hurricanes or terrorist attacks. This is not only true because firms are more exposed to catastrophes, but also the result of investments made in recent years to operate supply chains with fewer human and capital resources, especially inventory. Consequently, there is today less “slack” available in supply chains to deal with catastrophic events. Thus, proactively planning for these types of events should be a priority for supply chain managers. A catastrophic event has a very low probability of occurrence but has significant consequences if it does occur. The goal of this research is to develop a process to proactively plan for catastrophic risk events through an integration of diverse research streams related to the management of risk. In particular, the proposed process builds upon an existing risk analysis framework by incorporating an innovative methodology used by the insurance industry to quantify the risk of multiple types of catastrophic events on key supply chain locations.