Title: Managing Operations Improvements through Relational Capabilities in the Context of Small-Firm Networks
Abstract: The development of operations improvements in the network operations of a small nutritional products company is reported upon. New product development, and improvements in network process productivity and quality, have been the primary foci of a two-year programme conducted under the UK's Teaching Company Scheme. A critical concern for the operation of any network is the development and management of operational and relational capabilities, and in the case presented here it is contended that the major cause of operations inefficiencies was the absence of relational capabilities between the core firm and other members of their supply network. Specific problems encountered with the core firm's supply partners proved difficult to resolve, not due to lack of technical or operational ability, but almost exclusively as a result of poor levels of inter-organisational relations. The core firm studied was small, and lacked power relative to suppliers in a number of areas critical to the performance of the network. Applying Sako's trust classification scheme, we contest that small- and medium-sized enterprise (SME)-led networks depend on the development of relational capabilities that set out to build appropriate levels of trust in order to affect operations improvements: indeed, these are the very capabilities that are fundamental to the operational capabilities of the network and its actors.
Publication Year: 2000
Publication Date: 2000-04-01
Language: en
Type: article
Indexed In: ['crossref']
Access and Citation
Cited By Count: 11
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