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Impact of mass customization on cost and flexiblity performances: the role of social capital

Author

Listed:
  • Frank Wiengarten

    (ESADE Business School)

  • Prakash J. Singh

    (University of Melbourne)

  • Brian Fynes

    (UCD Smurfit School of Business)

  • Ali Nazarpour

    (Maynooth University)

Abstract

More than ever, companies have to cope with ever changing market conditions. Some companies have reacted to shortened product life cycles, constant changes in customer preferences and cost pressures by implementing mass customization practices. Mass customization has been hailed as a way to overcome the tradeoff between cost and flexibility performance. However, there is lack of consistent empirical evidence to demonstrate that this really is the case. We advance this debate by proposing that in order for mass customization to be more effective, a company needs to possess and utilize social capital (i.e., cognitive, relational and structured social capital) within their supply networks. This study uses primary survey data from 513 plants from nine countries collected by the Global Manufacturing Research Group (GMRG). We used structural equation modelling analysis to test our hypotheses. Results indicate that mass customization has the ability to improve a company’s cost and flexibility performance. Furthermore, results regarding the moderating role of social capital are mixed. Cognitive capital only moderates the impact of mass customization on cost performance while relational capital increases this impact on both cost and flexibility performance. Structural capital does not moderate the impact of mass customization on performance.

Suggested Citation

  • Frank Wiengarten & Prakash J. Singh & Brian Fynes & Ali Nazarpour, 2017. "Impact of mass customization on cost and flexiblity performances: the role of social capital," Operations Management Research, Springer, vol. 10(3), pages 137-147, December.
    • Handle: RePEc:spr:opmare:v:10:y:2017:i:3:d:10.1007_s12063-017-0127-2
    DOI: 10.1007/s12063-017-0127-2
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    References listed on IDEAS

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    1. Min Zhang & Fiona Lettice & Xiande Zhao, 2015. "The impact of social capital on mass customisation and product innovation capabilities," International Journal of Production Research, Taylor & Francis Journals, vol. 53(17), pages 5251-5264, September.
    2. Westbrook, Roy & Williamson, Peter, 1993. "Mass customization:Japan's new frontier," European Management Journal, Elsevier, vol. 11(1), pages 38-45, March.
    3. Sihem Benmahmoud-Jouini & Sylvain Lenfle, 2010. "Platform re-use lessons from the automotive industry," Post-Print hal-00541292, HAL.
    4. Sihem Ben Mahmoud-Jouini & Sylvain Lenfle, 2010. "Platform re-use : lessons from the automotive industry," Post-Print hal-00483039, HAL.
    5. Fogliatto, Flavio S. & da Silveira, Giovani J.C. & Borenstein, Denis, 2012. "The mass customization decade: An updated review of the literature," International Journal of Production Economics, Elsevier, vol. 138(1), pages 14-25.
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    Cited by:

    1. Emilio Moretti & Elena Tappia & Veronique Limère & Marco Melacini, 2021. "Exploring the application of machine learning to the assembly line feeding problem," Operations Management Research, Springer, vol. 14(3), pages 403-419, December.
    2. Aisling Bonner & George Onofrei & Paul Humphreys & Michael Margey & Trevor Cadden, 2021. "Entrepreneurial versus cooperative social capital: The impact on operational performance," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3854-3865, December.
    3. Gerald Oeser & Pietro Romano, 2021. "Exploring risk pooling in hospitals to reduce demand and lead time uncertainty," Operations Management Research, Springer, vol. 14(1), pages 78-94, June.

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