Identification and Investigation of Value Creation Barriers in Auto Part Industry: An Interpretive Structural Modeling Approach (Case Study)
Subject Areas : Business Management
1 - Professor, Department of Management, Tabriz Branch, Islamic Azad University, Tabriz, Iran
Keywords: value, Interpretive Structural Modeling, analytic hierarchy process,
Abstract :
Achieving success in an industrial cluster depends on avariety of variables. A fertile research soil in this regard seems to be investigation of the very concept of value from different perspectives. The aim of this study was thus to identify barriers to value creation in auto part industry of East Azarbaijan and to scrutinize them using ISMtechniqueThe research population comprised 220 managers of auto part manufacturing companies who were members of auto-part manufacturer forum of East Azarbaijan. A sample of 71 was further selected from the population based on Cochran's formula. Two questionnaires were distributed to glean the research data: one focused on identifying the value creation barriers and the other on pinpointing the inter-relationships among those barriers. Value creation barriers were identified via t-test analysis of the research data and the ISM technique was implemented in structuring the identified barriers. The findings emerging from the ISM analysis delineated "nonsufficient experience", "poor inter-personal communication" and "technological changes" as the most influential barriers, and "lack of innovative ideas", "low quality of manufacturing" and "routine thinking" identified as the most influenceable barriers to value creation in the auto part industry. The findings suggest that the barriers could be adequately overcome by promoting work relationships among the personnel, employing experienced experts and reinforcing research and development in monitoring new technologies in automotive industry.
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Klanac, N. G. (2013), An Integrated Approach to Customer Value: A Comprehensive-Practical Approach. Journal of Business Market Management, 6(1), 22-37.
Lee, M.K., Kwon, H.M., Hong, S.H.,& Kim, Y.J. (2007), Determination of the Optimum Target Value for a Production Process with Multiple Products. International Journal Production Economics, 107, 173-178.
Malek akhlagh, E., Ayyagh, Z.,& Farkhondeh, M. (2013), The Role and Place of Global Value Chains' Upgrading Techniques. Technology Growth, 34, 12-19, (In Persian).
Memarzade,G., Farhadi mahali, A.,& Sarfarazi, M.(2011), Integrated Approach in the Lean Principles of Value Engineering in Value Creation. Iranian Journal of Public Administration Mission, 3, 25-58, (In Persian).
Mottaghi, H., & Khazaei, S. (2008), Implementing the Value Stream Management to Improve Production Planning System in the Automobile Industry (Case Study: Samand Assembly Line). Journal of Management Perspective, 29, 193-219, (In Persian).
Paulin, M., Ferguson, R.J.,& Payaud, M.(2000), Business Effectiveness and Professional Service Personnel Relational or Transactional Managers?. European Journal of Marketing, 34, 453-471.
Rezaei, M.,& Hosseini, M.(2015), Accommodating Value in Customer Perspective in front of Enterprise View. Fourth National Conference and the Second International Conference of on Accounting and Management, (In Persian).
Shirazi, M.(2001), Investigating the Competitive Priorities in Determining the Industry Sector Operations Strategy. Management and Development Journal, 8, 49-39, (In Persian).
Taghizadeh, H.,& Mohammadpour Shateri, M.(2009), Analyzing the Reasons for not Using the Value Analysis and Lean Approach (Case Study). Productivity Management (Beyond Management), 3(9), 77-101, (In Persian).
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Taghizadeh, H.,& Shokri, A. (2012), Designing Value Analysis Implementation Model In Manufacturing Organizations Based On Interpretive Structural Modeling Approach. International Journal of Applied Social Science Research, 1(1), 1-4.
Taghizadeh, H.,& Soltani Fesghandis, G.(2011), Identifying and Prioritizing Factors Affecting Consumer Behavior Based on Product Value. International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, 5(12), 1953-1956.
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Taghizadeh, H.,& Ziyaei Hajipirlu, M. (2014), Presenting Knowledge Sharing Model with Interpretive Structural Modeling Approach (Case Study). Journal of Executive Management, 10, 59-84, (In Persian).
Taghizadeh, H., Taheri, H.,& shokri, A.(2012), The Study of the Effective Organizational Factors in the Execution of Value Engineering. International Journal of Innovation, Management and Technology, 3(3), 202-205.
Talebi, D., Khosrow Nobari, B.,& Fadaviardestani, M.(2012), Identifying the Critical Success Factors on Value engineering Studies. Journal of Industrial Management Perspective, 7, 9-27,(In Persian).
Toivonen, R. M. (2012),Product Quality and Value from Consumer Perspective - An Application to Wooden Products. Journal of Forest Economics, 18(2), 157-173.
Töytäri, P., Rajala, R.,& Alejandro, T. B. (2015), Organizational and Institutional Barriers to Value-Based Pricing in Industrial Relationships. Industrial Marketing Management, 47, 53-64.
Woodruff, R.B.(1997), Customer Value: The Next Source for Competitive Advantage. Journal of the Academy of Marketing Science, 25(2), 139-153.
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Armstrong, G.,& Kotler, P.(2002), Marketing:An Introduction.New Jersey: Prentice Hall.
Asadi, A., &Choobchian, S. (2010), An Introduction to Value Engineering. Journal of Despair Strategy, 23, 165-183, (In Persian).
Creusen, M.E.H., Veryzer, R.W.,& Schoormans, J.P.L. (2010). Product Value Importance and Consumer Preference for Visual Complexity and Symmetry. European Journal of Marketing, 44, 1437-1452.
Creyer, E. H., & Ross Jr, W. T. (1996), The Impact of Corporate Behavior on Perceived Product Value. Marketing letters, 7(2), 173-185.
Gil Saura, I., Berenguer Contrí, G., Cervera Taulet, A., & Moliner Velázquez, B. (2005),Relationships among Customer Orientation, Service Orientation and Job Satisfaction in Financial Services. International Journal of Service Industry Management, 16(5), 497-525.
Gil, I., Berenguer, G., & Cervera, A. (2008), The Roles of Service Encounters, Service Value, and Job Satisfaction in Achieving Customer Satisfaction in Business Relationships. Industrial Marketing Management, 37(8), 921-939.
Huber, F., Herrmann, A.,& Morgan, R. E. (2001), Gaining Competitive Advantage through Customer Value Oriented Management. Journal of Consumer Marketing, 18, 41-53.
Iyer, S. S. (2004), Value Engineering: A How to Manual. Translated by: M. S. Jabal-Ameli, & S. A., Mir-Mohammad Sadeghi, Farat Publication, (In Persian).
Klanac, N. G. (2013), An Integrated Approach to Customer Value: A Comprehensive-Practical Approach. Journal of Business Market Management, 6(1), 22-37.
Lee, M.K., Kwon, H.M., Hong, S.H.,& Kim, Y.J. (2007), Determination of the Optimum Target Value for a Production Process with Multiple Products. International Journal Production Economics, 107, 173-178.
Malek akhlagh, E., Ayyagh, Z.,& Farkhondeh, M. (2013), The Role and Place of Global Value Chains' Upgrading Techniques. Technology Growth, 34, 12-19, (In Persian).
Memarzade,G., Farhadi mahali, A.,& Sarfarazi, M.(2011), Integrated Approach in the Lean Principles of Value Engineering in Value Creation. Iranian Journal of Public Administration Mission, 3, 25-58, (In Persian).
Mottaghi, H., & Khazaei, S. (2008), Implementing the Value Stream Management to Improve Production Planning System in the Automobile Industry (Case Study: Samand Assembly Line). Journal of Management Perspective, 29, 193-219, (In Persian).
Paulin, M., Ferguson, R.J.,& Payaud, M.(2000), Business Effectiveness and Professional Service Personnel Relational or Transactional Managers?. European Journal of Marketing, 34, 453-471.
Rezaei, M.,& Hosseini, M.(2015), Accommodating Value in Customer Perspective in front of Enterprise View. Fourth National Conference and the Second International Conference of on Accounting and Management, (In Persian).
Shirazi, M.(2001), Investigating the Competitive Priorities in Determining the Industry Sector Operations Strategy. Management and Development Journal, 8, 49-39, (In Persian).
Taghizadeh, H.,& Mohammadpour Shateri, M.(2009), Analyzing the Reasons for not Using the Value Analysis and Lean Approach (Case Study). Productivity Management (Beyond Management), 3(9), 77-101, (In Persian).
Taghizadeh, H.,& Pourtaghi Anvarian, J. (2007), Value Analysis and Its Application in Assembly Lines. Journal of Management and Economics, 71, 67-84, (In Persian).
Taghizadeh, H.,& Shokri, A. (2012), Designing Value Analysis Implementation Model In Manufacturing Organizations Based On Interpretive Structural Modeling Approach. International Journal of Applied Social Science Research, 1(1), 1-4.
Taghizadeh, H.,& Soltani Fesghandis, G.(2011), Identifying and Prioritizing Factors Affecting Consumer Behavior Based on Product Value. International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, 5(12), 1953-1956.
Taghizadeh, H.,& Zeinalzadeh, A. (2010), A Review of Feasibility of Value Analysis Execution in Organization (A Case Study). 8th International Congress onKnowledge, Economy & Management.
Taghizadeh, H.,& Ziyaei Hajipirlu, M. (2014), Presenting Knowledge Sharing Model with Interpretive Structural Modeling Approach (Case Study). Journal of Executive Management, 10, 59-84, (In Persian).
Taghizadeh, H., Taheri, H.,& shokri, A.(2012), The Study of the Effective Organizational Factors in the Execution of Value Engineering. International Journal of Innovation, Management and Technology, 3(3), 202-205.
Talebi, D., Khosrow Nobari, B.,& Fadaviardestani, M.(2012), Identifying the Critical Success Factors on Value engineering Studies. Journal of Industrial Management Perspective, 7, 9-27,(In Persian).
Toivonen, R. M. (2012),Product Quality and Value from Consumer Perspective - An Application to Wooden Products. Journal of Forest Economics, 18(2), 157-173.
Töytäri, P., Rajala, R.,& Alejandro, T. B. (2015), Organizational and Institutional Barriers to Value-Based Pricing in Industrial Relationships. Industrial Marketing Management, 47, 53-64.
Woodruff, R.B.(1997), Customer Value: The Next Source for Competitive Advantage. Journal of the Academy of Marketing Science, 25(2), 139-153.
