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2. JOM 2008 Best Paper Session and Award Ceremony Academy of Management 2009 Annual Meeting Chicago, IL August 9, 2009 Kenneth Boyer, Ohio State University Morgan Swink, Michigan State University Co-Editors in Chief 0:05

3. 2008 Best Reviewers • Kevin Dooley, Arizona State University • Linda Angell, American University of Sharjah • Christian Rossetti, North Carolina State University • Michael Gorman, University of Dayton 0:58

4. 2008 Best Reviewers Adrian Choo, Rensselaer Polytechnic Institute Tobias Schoenherr, Michigan State University 1:49

5. 2008 Best Associate Editor • Xenophon Koufteros, Texas A & M University Congratulations! 2:54

6. 2008 Best Paper Presentations 3:09

7. Understanding Behavioral Sources of Process Variation Following Enterprise System Deployment Elliot Bendoly – Emory University Mark Cotteleer – Marquette University 4:24

8. Origins of the Study • Shared perspective of much of the ES literature – that it has a strong standardizing influence on processes and outcomes (c.f., Davenport 1998; Lee and Lee 2000; Scheer and Habermann, 2000; McAfee 2000; Bendoly 2001; Light et al 2001; Jacobs and Bendoly 2003; Razi and Tarn 2003; Rabinovich 2003; Bendoly and Kaefer 2004; Seely Brown and Hagel 2004; Trott and Hoecht 2004; Bendoly and Jacobs 2005) • Nick Carr (2003, 2004)  Does IT Matter? • Concurrent work illustrates parity followed by divergence in target firm (Cotteleer 2006) • Little insight into mechanisms driving deviations. • Data on other firm (not published) shows less deviation across sites • Sparks search for theoretical framework that explores deviations. • Cases great for developing “hypotheses and propositions”. (Yin 1994) • But wide array of differences make such field studies difficult when attempting to isolate specific factors. 5:17

9. Study Overview Context :Performance trends following large-scale IT implementation; Case of ERP. Research Focus: Role of system/operational misalignment and ease of circumvention of system imposed protocols on trends in system use. Methods :Case study comparisons and controlled experiments 7:10

10. Study Overview Findings :Support for the moderating role of “ease of circumvention” on the intention to circumvent system imposed protocols over time in response to perceived system/operational mismatches. Strong intention of managers to circumvent systems in the presence of task-technology mismatches. Perceived ease of circumvention significantly impacts time-frame for intent. 7:34

11. Theoretical Motivation • Misfits will be resolved through circumvention where it is easy to do so (George 2003; Szajna and Scamell 1993; Robbins 1986; Festinger 1957). • Where circumvention is difficult, other factors may be instrumental in resolving misfits – time and associated experience being obvious candidates (Robey et al. 2002; Tyre and von Hipple 1997; Stein and Vandenbosch 1996; Tyre and Orlikowski 1994). As people gain experience with use, they also gain insight into possible misuse. Phased perspectives (e.g., adoption, adaptation, acceptance, use) of implementation may be inadequate…., …, and initially observed levels of user acceptance may be very different from those observed at later points – as adaptation continues. 7:50

12. Theoretical Motivation In essence, I will bide my time with current protocols until I can figure out a way around the misfit. 9:45

13. Field Evidence: Case Comparisons • Peripherals Division • Demonstrates strong adherence to and communication of the centralized model from the start • Deploys knowledge and policing resources • Realizes minimal deviations from anticipated long-term results • Tristen • Faces perceived mismatches between local requirements and a centralized ERP deployment • Leads users to continue seeking ways to circumvent the system-driven business process • Management reports focus on unanticipated behavioral phenomena 11:50

14. Experimental Hypotheses In the presence of local task-technology mismatches… Easy to circumvent = Immediate intention to circumvent (H1) Difficult to circumvent = Initially low intention to circumvent = Perseverance of intention (and ability) to circumvent in the long-term (H2) H1: For a given level of perceived mismatch, short-term intentions to circumvent will be greater when circumvention options are more apparent then when circumvention options are less apparent. H2: At higher levels of perceived mismatch, differences between long-term and short-term intentions will be greater when circumvention options are perceived to be less available and obvious. (i.e., If circumvention is easy, I will do it right away) (i.e., If circumvention is hard [but important], I will keep at it until I succeed) 15:05

15. Experimental Study • Evaluate differences between intended short- and long-term behavioral reactions to: • Task-technology mismatches in the context of ERP implementation. • The moderating role of “Ease of circumvention”. • Design goals: • Avoid operational complexities that would risk confounding examinations at a firm-level of analysis. • Reduce the risk of common-source common-method bias. • Retain adequate sample size for evaluation. 16:50

16. Treatment Types For unshaded cells: Time is unlikely to be viewed as a valuable mechanism for additional circumvention, since additional circumvention itself provides little added value. 16:32

17. Measurement Scales Perceived Mismatch: The task-technology fit literature  general guidance in terms of assessing the degree of mismatch perceived between centralized protocols and the centralized/decentralized nature of established operating processes (Goodhue, 1998; Goodhue and Thompson, 1995). Perceived Ease-of-circumvention: Adapted from established related literature on the “ease of system use” construct (Goodhue and Thompson 1995, Somers, Nelson and Karimi 2003). These items also mimic the scale items used to depict general perceptions of behavioral control in technology acceptance studies (Ajzen 1991; Davis, 1989; Davis et al. 1989). Circumvention Intent (Dependent Variable): Two separate scales for circumvention intent. - Drew upon similar scales used in the literature on behavioral intent and applications of the theory of reasoned action (e.g., Fishbein and Ajzen 1975; Gentry and Calantone 2002). Scales test reliable (a > 0.80). Differences among treatment groups significant and in anticipated direction. 17:07

18. General Treatment Comparisons • Full Sample: Initial support for Hypothesis 1 • High Ease of Circumvention  Greater short-term intention to circumvent (p<0.005)* • Observable in both low (p<0.01) and high (p<0.001),mismatch conditions when tested separately. H1: Significant differences between EOC conditions • *Similar results, although not formally hypothesized, are observed with regard to long-term intention to circumvent for low (p<0.005) and high (p<0.05) mismatch treatments. 17:27

19. General Treatment Comparisons • High Mismatch Treatments: Initial support for Hypothesis 2 • High Ease of Circumvention No short- vs. long-term difference in circumvention intent. • Low Ease of Circumvention Significant (p<0.001) short- vs. long-term difference in circumvention intent. • i.e., adopt early but circumvent in the long-term. H2: Significant differences between short- and long-term intention among EOC conditions 18:09

20. General Results (simplified) • If mismatch is low, I don’t try that hard to circumvent the process • I do a little more if it is really easy… 19:03

21. General Results (simplified) • If mismatch is high, my response depends on how I see my options • If circumvention is easy, I do it right away • If circumvention is hard, I bide my time 19:13

22. Statistical Results • If mismatch is high, my response depends on how I see my options • If circumvention is easy, I do it right away • If circumvention is hard, I bide my time 19:33

23. Prescriptions for Management and Research • Managerial Prescriptions : • Strong communication and understanding during the implementation process • Strong management of organizational ‘perceptions’ of mismatch. • Continuous monitoring and control beyond go-live (to mitigate lagged-shifts from initial results) • Emphasis on the difficulty, inappropriateness and/or policing of circumvention may be warranted. • Research Prescriptions : • Longitudinal perspective may be critical when studying adoption and performance • As traditional phased deployment perspectives may miss crucial interweaving of adaptation and acceptance. 19:49

24. Thank you. Discussion 21:20

25. ISO 9000 Practices and Financial Performance: A Technology Coherence Perspective MARY BENNER Wharton School of Management University of Pennsylvania AoM 2009 Sunday, August 9, 2009 FRANCISCO VELOSO Carnegie Mellon University and Universidade Católica Portuguesa 25:36

26. PROCESS MANAGEMENT AND FIRM PERFORMANCE Do Process Management Practices Matter for Firm Economic Performance? Do Technology Capabilities Play a Role? How and Why? Focus on ISO 9000 Adoption Framework to Analyze Performance Impact of Process Management Practices (PMP) Adoption Statistical Testing of the Relevant Propositions 26:50

27. RELATED LITERATURE AND EARLY FINDINGS Prior research on adoption of Process Management Practices (PMP) - including ISO 9000 - suggests Adoption decision comes from ambition to legitimize superior performance as well as from institutional pressure Adoption has a positive impact on yield, waste and other related process efficiency metrics Adoption is seen by managers and workers as having had a positive impact on performance (perception metrics) Equivocal results in terms of impact of adoption on financial performance Limitations of Existing Research Interest mostly in determinants of adoption for most ‘fads’ Limited use of hard data for assessing impact on performance Using cross sections and control groups, especially for performance evaluation Assessment of impact on performance hasn’t explored firm heterogeneity, especially not the role of technology 27:40

28. SIGNALING, ADOPTION AND PERFORMANCE What is ISO 9000? Standard established by the International Standards Organization Set of guidelines on how should a firm map, document and support the quality management system in a given operating facility, regardless of what it does Adherence to ISO 9000 certified by external auditor and requires renewal What can it to for organizations? Tighten linkages and coordination among routines across organization Increase the interdependence and “fit” in organizational activities, creating unique and inimitable complementarities Why is ISO adoption likely to impact performance? Increased revenue from access to additional customers as a result of legitimacy associated with adoption Increases in operational effectiveness and resulting cost reductions associated with PMP implementation But benefits less likely with widespread adoption Firms cannot claim ISO as legitimating superior performance Most competitors will have undergone same process improvement path 29:46

29. THE COMPETITION HYPOTHESIS H1a: : Adoption of ISO 9000 practices by a firm will result in improved financial performance H1b: Adoption of ISO 9000 practices by firms in an industry will be associated with performance benefits for early adopters, but lower performance benefits for later adopters 31:33

30. BASE MODEL, DATA & VARIABLES Data from one Industry: Automotive Suppliers At least one Segment with Auto Industry Sales above 50% Comprehensive panel of 90 US public firms from 1988 to 1997 Data Represents more than 65% of the total supplier industry Model: Firm Fixed Effects Regression Model Dependent Variable: Performance ROS, ROA, MTB ratio Independent Variables ISO 9000 Adoption (0-1) Direct Effect Interaction with Early adopters (Until 95) Control Variables Product/Process Identifier Log of Sales (Proxy for Size) Capital Expenditures Customer Concentration (Herfindahl on 3 big sales) Geographic Concentration (Herfindahl on Europe US Japan) Market Diversification (Herfindahl on sales across SIC codes) Time Effects 32:00

31. PATTERN OF ISO 9000 ADOPTION OVER TIME Ninety Firms in the Sample 50% of the sample 33:21

32. IMPACT OF ISO ADOPTION ON FIRM PERFORMANCE Testing H1a: Trend Testing H1a: 0-1 Adopt Method: Firm Fixed Effects Regression with time dummies * sig at 10%; ** sig at 5%; *** sig at 1% 34:10

33. IMPACT OF ISO ADOPTION ON FIRM PERFORMANCE Testing H1b: Trend Testing H1b: 0-1 Adopt Method: Firm Fixed Effects Regression with time dummies * sig at 10%; ** sig at 5%; *** sig at 1% 34:44

34. EXPLORING TECHNOLOGY HETEROGENEITY Idea that all firms benefit from adopting PMP at odds with existing literature on operations and strategy Research emphasizes role of unique capabilites! Can we find what firms can gain sustainable competitive advantage from the adoption of PMP? Recognize that PMP are customized by individual firms Find contexts where PMP create firm-specific complementarities Look at the complexity and focus of the technology base 35:30

35. THE TECH COHERENCE HYPOTHESIS: H2 Broad Technology Base Diverse Technology Base Potential best fit for benefiting from ISO adoption PMP benefits outweighted by costs or the creation of organizational straight-jackets Easy to imitate and limited opportunities for customization or improvement of process linkages Opportunity to use PMP to tighten linkages in organization Narrow Technology Base H2 to be tested: Inverted U relation – Exponent on benefits side of adoption smaller than on cost side 36:19

36. MEASURING PRODUCT & PROCESS RELATEDNESS Coherence expresses the relatedness of technological capabilities A relational classification scheme developed based on criteria of technological relatedness of processes Science & technology Process Engineering Properties of materials Gathered by analysis of annual reports and SEC filings of the companies Concentration Measure Herfindahl Index ni – Number of technologies in area i NT – Total Technologies Varies from zero to 1 Example of Classification Scheme for Processes 2 levels 38:10

37. BASE MODEL, DATA & VARIABLES Model: Firm Fixed Effects Regression Model Dependent Variable: Performance ROS, ROA, MTB ratio Independent Variables ISO 9000 Adoption (0-1 & Trend) Interaction with Technology Focus and its square Control Variables Product/Process Identifier Log of Sales (Proxy for Size) Capital Expenditures Customer Concentration (Herfindahl on 3 big sales) Geographic Concentration (Herfindahl on Europe US Japan) Market Diversification (Herfindahl on sales across SIC codes) Time Effects 39:18

38. IMPACT OF ISO ADOPTION ON FIRM PERFORMANCE Method: Firm Fixed Effects Regression with time dummies * sig at 10%; ** sig at 5%; *** sig at 1% 39:28

39. CONCLUSIONS AND IMPLICATIONS The average firm does not seem to gain from ISO adoption Earlier adopters gain, but benefits competed with entry Later adopters have less opportunity to gain from adoption Ability to gain from PMP adoption contingent on firm nature The technical complexity of the firm matters! Benefits accrue when some (but not too much) process streamlining happens Policy Implication: Be careful when jumping the bandwagon! PMP are not a silver bullet, they can benefit as much as they can hurt Strategy and Capability fit condition opportunity for improvement Widespread adoption transforms improvement and signaling tool in entry condition, with questionable results… 40:17

40. ISO 9000 Practices and Financial Performance: A Technology Coherence Perspective MARY BENNER Wharton School of Management University of Pennsylvania AoM 2009 Sunday, August 9, 2009 FRANCISCO VELOSO Carnegie Mellon University and Universidade Católica Portuguesa 41:30

41. Creating Consumer Durable Retailer Customer Loyalty through Order Fulfillment Service Operations Beth Davis-Sramek, John T. Mentzer, & Theodore P. Stank 47:35

42. Supply Chain Realities • Diminishing “brand power” • Products becoming commoditized • “Polygamous” loyalty • Retailers’ role in consumer purchasing How do manufacturers create retailer loyalty? 50:17

43. Challenge to Operations Management How do manufacturers implement operational strategies that help the retailer achieve its objectives? By understanding the retailers’ order fulfillment needs and expectations 53:38

44. Conceptual Model and Hypotheses Operational H2 Order Fulfillment Service H6 H1 Satisfaction H3 Relational H5 Order Fulfillment Loyalty Service H4 Affective Purchase Commitment Behavior 55:09

45. Implications • Manufacturers need to build customer focused operations capabilities • Moves operations from efficiency focus (“doing things right”) to effectiveness focus (“doing the right things”) (Stank et al. 1999) • Operations management strategies should also focus on the “soft” side of service • Loyalty is not just behavior – building bonds with customers is key to retention 58:30

46. Limitations and Further Research • Sample limited to one company in one industry • “Big box” retailers • Industries relying on more self-service • Objective measures of order fulfillment performance • Inter-disciplinary focus that examines linkages between OM strategy and other firm functions/processes 62:18

47. A Conceptual Framework of Demand and Supply Integration Demand Supply Demand/Supply Market Market DEMAND SUPPLY Integration Knowledge Knowledge DSI-Based DSI-Based Demand Mgmt. Supply Mgmt. Plans Plans Demand Management Domain Supply Management Domain 62:39

48. Conceptual Model and Hypotheses Operational H2 Order Fulfillment Service H6 H1 Satisfaction H3 Relational H5 Order Fulfillment Loyalty Service H4 Affective Purchase Commitment Behavior 64:54

49. THANK YOU! Questions? 65:20

50. 2008 Best Paper Nominees • “Understanding behavioral sources of process variation following enterprise system deployment,” Pages 23-44, Vol. 26, No. 1, Elliot Bendoly and Mark J. Cotteleer • “Creating consumer durable retailer customer loyalty through order fulfillment service operations,” Pages781-797, Vol. 26, No. 6, Beth Davis-Sramek, John T. Mentzer and Theodore P. Stank • “ISO 9000 practices and financial performance: A technology coherence perspective,” Pages 611-629, Vol. 26, No. 5, Mary J. Benner and Francisco M. Veloso 68:35