TY - JOUR
T1 - Complexity as contingency in sales and operations planning
AU - Thomé, Antônio Márcio Tavares
AU - Sousa, Rui Soucasaux
AU - Carmo, Luiz Felipe Roris Rodriguez Scavarda do
N1 - Copyright:
Copyright 2014 Elsevier B.V., All rights reserved.
PY - 2014
Y1 - 2014
N2 - Purpose - The purpose of this paper is to test whether complexity interacts with Sales and Operations Planning (S&OP) practices by positively moderating the impact of S&OP practices on manufacturing operational performance dimensions of quality, flexibility and delivery. Design/methodology/approach - Three hypotheses are developed on the relationships between S&OP practices, task complexity and process complexity and manufacturing operational performance. Scales are validated with structural equation modelling. The hypotheses are tested through a hierarchical regression analysis using data from a sample of 725 manufacturing plants from 21 countries. Findings - S&OP practices of organizational management, technological integration, measurement systems and integration of plans impact positively on manufacturing operational dimensions of quality, delivery and flexibility. Process complexity moderates the effect of S&OP practices, amplifying its impact upon all three performance dimensions. Product complexity moderates the effect on quality, but not on delivery and flexibility. Practical implications - S&OP practices of organizational and technological coordination of manufacturing and new product design; information technology to measure information sharing and planning; dedicated information systems do impact upon manufacturing operational performance. Results are amplified by process complexity. The more complex are the manufacturing processes the larger the gains of S&OP. Originality/value - This research applies contingency theory to S&OP and empirically demonstrates its impact on manufacturing operational performance and the moderator role of complexity.
AB - Purpose - The purpose of this paper is to test whether complexity interacts with Sales and Operations Planning (S&OP) practices by positively moderating the impact of S&OP practices on manufacturing operational performance dimensions of quality, flexibility and delivery. Design/methodology/approach - Three hypotheses are developed on the relationships between S&OP practices, task complexity and process complexity and manufacturing operational performance. Scales are validated with structural equation modelling. The hypotheses are tested through a hierarchical regression analysis using data from a sample of 725 manufacturing plants from 21 countries. Findings - S&OP practices of organizational management, technological integration, measurement systems and integration of plans impact positively on manufacturing operational dimensions of quality, delivery and flexibility. Process complexity moderates the effect of S&OP practices, amplifying its impact upon all three performance dimensions. Product complexity moderates the effect on quality, but not on delivery and flexibility. Practical implications - S&OP practices of organizational and technological coordination of manufacturing and new product design; information technology to measure information sharing and planning; dedicated information systems do impact upon manufacturing operational performance. Results are amplified by process complexity. The more complex are the manufacturing processes the larger the gains of S&OP. Originality/value - This research applies contingency theory to S&OP and empirically demonstrates its impact on manufacturing operational performance and the moderator role of complexity.
KW - Advanced manufacturing technology
KW - Manufacturing operational performance
KW - Process complexity
KW - Product complexity
UR - http://www.scopus.com/inward/record.url?scp=84902805190&partnerID=8YFLogxK
U2 - 10.1108/IMDS-10-2013-0448
DO - 10.1108/IMDS-10-2013-0448
M3 - Article
AN - SCOPUS:84902805190
SN - 0263-5577
VL - 114
SP - 678
EP - 695
JO - Industrial Management and Data Systems
JF - Industrial Management and Data Systems
IS - 5
M1 - 17112551
ER -