MMM306 GLOBAL STRATEGY

Assignment: Internationalisation and Global Expansion of an Australian Company

Name: Megan Coetzer Student ID: 213194495 Lecturer & Tutor: Dr Achinto Roy

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CONTENTS PAGE
PART ONE: Company Situation Analysis ................................................................................ 4

i.

Resource-Based View ................................................................................................. 4

ii.

Industry-Based View .................................................................................................. 5

iii.

Institutional-Based View ............................................................................................ 7

iv.

Current Strategy .......................................................................................................... 8

PART TWO: Internationalization ............................................................................................. 8

PART THREE: Recommendations ......................................................................................... 10

References ............................................................................................................................... 12

Appendix ................................................................................................................................. 13

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INTRODUCTION This comprehensive report presents an analysis of David Jones Limited and its possibility to expand internationally. Its good business model, current financial and economic position (low debt and solid cash flows) provides justification for David Jones to become a major player in the global market. David Jones (DJ) was founded in 1838 and has grown to become the second largest department store chain, with 37 stores and hires over 10,000 employees (webarchive.org) in Australia. They began operations with designer clothing and have expanded to offer in shoes, accessories, consumer electronics, household appliances, food and wine. It is one of the four largest department stores which dominate the Australian market (90%), alongside Myers, Woolworths and Wesfarmers (ibisworld.com). David Jones has kept its operations within Australia and focused on low risk, high income locations. Its current resources and capabilities have transformed itself into a sustained competitive advantaged firm and through this has had exposure on the Australian Stock Exchange and increased market share. DJ has the potential to be a large and successful competitor in the global market. This paper draws on the viability of DJ to broaden its operations into the United States market. Thorough analysis will be conducted outlining the objectives DJ will undertake to ensure success in the global market. The report will be outlined focusing on the following points: - Detailed analysis of objectives laid out for DJ for an insight into entering the global market. - A situation analysis of the three perspectives; resource-based, industry-based and institutional-based views in relation to current strategy DJ employs. - A current financial and economic position of DJ, outlining the current strategy pursued in Australia - Discussion on the internationalisation strategies placed forth for DJ in regards to the international context. - Recommendations for DJ to successfully internationalise their operations over a period of 24 months. David Jones is celebrating its 175th anniversary this year and for such a large organisation to continue on its current path of success, it will need to continue adapting to its environment, and now as the economy is fiercer than ever before, a call for internationalisation is emerging and only the elite organisations will survive.

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PART 1: COMPANY SITUATION ANALYSIS David Jones (DJ) can be analysed using three perspectives; resourced based, industry based and institutional based view. All three provide a well-rounded synergy analysis of the dynamics of David Jones. To consider entering the international market, extensive analysis will need to be undertaken in all three views. All successful companies when internationalising have strategic plans and goals, which can be formed starting with a list of objectives for strategy for the future operations. The objectives laid out for DJ are: - To break into the new geographic location. This means to enter the industry and break through all entry barriers. - To establish sale/profit targets. These targets are measured by timely milestone periods where plans have been planned and set to be implemented. - To expand and retain brand and customer base, through various strategies such as the mode of entry, mass advertising and PR events. - To increase profits to shareholders, through increase in profits by new geographic store location - To increase market share, by penetrating new geographic market
i. RESOURCE-BASED VIEW

The resource-based view refers to the leading perspective that suggests differences in firm performance are most fundamentally driven by differences in firm resources and capabilities (Peng, 2014, pg.64). This view focuses on the internal strengths and weaknesses and is illustrated in Table 1. As detailed in this table, profits have decreased 66% from 2011 ($168 million) to 2012 ($101 million), resulted from an increase in advertising expense by 15% which was used to increase their market share to no avail as revenue still decreased by 5%. This decrease was attributed to an apparent drop in household income which has fallen 8.6% and further amplified by the consumer savings ratio remaining high (Lasker, 2013). This indicates to DJ that a change is imminent. In order to increase their sales and profits, DJ will need to increase their market segment as the current trend for Australian consumers is switching towards a long-term saving mentality due to the recent global financial crisis. The underlying focus in this view is that all firms possess a bundle of resources and capabilities, which a firm uses to define and implement their strategy. Resources are both tangible and intangible and can help contribute to the synergy effect of their operations. McConnell (2011, pg341) defines resources as a source or supply, typically assets that are transformed to produce benefit. For DJ, they need to assess their resources and capabilities and determining which are capable of core competency status (refer to appendix 2), enabling a competitive advantage internationally. To obtain sustained competitive advantages, DJ will need to examine their resources and determine whether all four criteria have been obtained in the VRIO Framework (Peng, 2014, pg. 71). SOME OF DJ RESOURCES
Upgraded infrastructure including stores and factories Major player in OCR (Omni Channel Retailing) Fully integrated order management system providing information of all products, pricing, promotions and inventory among channels. Existing financial position Ability to raise new capital and possession of liquid assets

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Human resources (quality, qualified, experienced, morale and business culture) Prime location of current stores IT integration with customer base (blog, apps and online shopping) Goodwill

Effective management systems

Table 1: List of David Jones Resources

DJ value chain provides an analysis of their primary and support activities, which also provides insight into their management and operational efficiency. Whether DJ can successfully maximise these resources is crucial when expanding internationally.
PRIMARY ACTIVITIES
Involved with a products physical creation, its sale and distribution to buyers and service after the sale Mylie (2005)

SUPPORT ACTIVITIES
Provide assistance necessary for the primary activities to take place Hanson et al (2011)

Inbound logistics: real-time integrated scheduling, shipping and warehouse management, planning across states and all their respective suppliers.

Procurement:

suppliers,

property,

plant

and

equipment, acquisitions. Technological development: innovative adaptability, collaborative product designs, advanced technology for process systems, new communication channels (online/apps), research and development. Human Resource Management: recruitment, selection and retention of employees, loyalty, training and development, employee culture

Operations: effectual knowledge and information exchange between parties, communication through departments/divisions, efficient operations process system

Outbound logistics: local distribution and detailed product processes and handling. Marketing Promotional and Sales: brand development, the right

Firm Infrastructure: management structure (effective for specific business operations), centralised

campaigns,

selecting

distribution channels (online, newspaper, TV etc.) and push advertising. Service: Sales support for customers and suppliers, customer satisfaction and retention.

hierarchy and excellent finances, accounting and legal support.

Table 2: Primary and Support activities for Value Chain analysis. Sourced Hitt, A & Ireland, D (2009, pp112)

ii.

INDUSTRY-BASED VIEW

The industry-based view focuses on how average firms within one industry compete (Peng, 2014, pg. 34). This focuses on the external opportunities and threats to the firm (refer to appendix 1). The retail industry in Australia is very intense and thin in comparison to its Western counterparts but DJ has managed to stay successful throughout the past century, maintaining its high margin brand driven strategy valued at 2.5 billion (Macinnis 2011). DJ uses a differentiation strategy for its products, to deliver their goods so that customers perceive them as valuable and different to other goods in the market. DJ consumers are willing to pay premium prices as they sell high quality and luxurious goods. They currently possess a clear focus on their industry market boundaries, knowing which consumers to market to and which areas of research and development they need to address. This helps ensure that DJ keeps up with fashion trends and is able to let their customers know through strategic advertising and Public-Relation related events.

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A Porters Five Force analysis can be illustrated to analyse the dynamics of DJs industry. This ensures the strategy and firm performance are aligned to the industry structure. Presented in the table below (table 2) is an analysis of Australias clothing industry. DJ successfully manages to compete in this industry even though it is highly segmented, defined by age, gender, preferences and body type. They have become a major competitor in Australias clothing industry and are considered one of the big four in relation to department stores. There is a similar trend to that of the American clothing industry. There is a high threat for new entrants entering the American market (as only little hurdle requirements may pose a threat) and this causes competitor rivalry to be very high. The power of suppliers is relatively low as there are many to choose from but the power of buys are high as there are many stores to choose from. Imitability of products can be high, especially in cases of branded goods (e.g. Nike, Lacrosse and Billabong) all contributing to reduced sales for DJ. The threats arising from the American clothing industry include the slow growth of the industry (as it is well established), high cost low-frequency purchases from consumers, and consumers experience financial hardship or are able to vertically integrate backwards. The well-established firms are either similar in size or larger and have more influence and product offerings so may result in low level of competitive advantage. As discussed above, the decreased consumer spending, attribute to increased levels of savings and the casual culture and lifestyle increases the need for DJ to seek alternative ways of boosting sales.
FORCE New Entrants (High) CHARACTERISTICS Multinational companies. More countries enter in the domestic market, then once established organisations enter the international market to become more strategically competitive. Relatively easy to sell new products or enter product into certain markets, the only big hurdle would funds to invest in advertising and distributing. Highly intensive Many other competitors both in the domestic and international market High level of concentration, with DJ, Myers, Woolworths and Wesfarmers accumulating 90% of the revenue for the Department Store industry. Dependent on the product most products have multiple sources For most basic products, suppliers have a weak position as they are easily interchangeable to different suppliers (e.g. sugar, flour, yeast) Overall, relatively low as easily changeable to do large amount of suppliers available both domestically and worldwide Demand variety and preferences Constantly changing fashion tastes Overall, very high as customers hold the power (can easily switch to another brand) Very diverse products Can imitate clothing at cheaper prices Currently not many competitors in the high-end retail industry in Australia Consumers have many brands and substitutes to choose from May be substituted for cheaper product brands

Competitive Rivalry (High)

Power of Suppliers (Low)

Power of Buyers (High)

Substituting Products (High)

Table 2: Porters Five Forces. Sourced Porter (1970).

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iii.

INSTITUTIONAL-BASED VIEW

The institutional-based view refers to the formal and informal elements of an institution governing the individual and firm behaviour. The key function of institutions is to reduce the level of uncertainty. This is done formally and informally through arms length transaction (process of operating through a third party enforcer) and relational contracting (mainly based on relationship building and personalised exchanges) (Peng, 2014, pg. 101). According to the Porter Diamond (1990, pg. 77), there are five determinants which affect a companys competitive advantage: firm strategy, structure and rivalry, domestic demand conditions, country factor endowments and the related and supporting industries. These factors can determine the success or failure of an organisation depending on how they utilise their resources and capabilities. Institutional differences are important to note especially between the emerging and developed economies as disparity may be so large that failure is inevitable. DJ understands and implements all the corporate governance and culture established by Australia, which contributes to the success of the organisation. Their formal institutions, characterised by laws, regulations and the coercive power by governments are all adhered to and closely monitored by the media and press. As DJ is a large and well known organisation within Australia, notice will be taken according to their every move and decision. DJ follows the Australian business codes and regulations to ensure they perform at maximum. They take a proactive approach to business ethics, anticipating responsibility and performing more than what is required of them (e.g. sexual harassment case in 2010). The informal institutions refer to the culture of the company, namely norms, culture and ethics. The way the organisation is run, especially through its employees are crucial to the firms success. DJ successfully hires, trains and retains its employees, providing further educational opportunities and position promotions regularly. They are one of the highest paid in the retail industry ranging from approx. $19-26 (davidjones.com.au/corporate_governance). The business culture is followed largely by the culture of the economy as illustrated in Hofstedes cultural values (see table below). These five factors provide an examination into the differences in Australian culture in comparison to the world. Their power distance is relative low, which means there is a low separation between being able to contact higher level employees and there is a low level of opinion that power is distributed unequally. Australia is a high individualistic culture, people look after themselves and in the business context, people are hired on merit and experience not by who you know. It is a very masculine society which means where managers are very assertive, decisive and aggressive. There is a relatively medium uncertainty avoidance which means that people can rely equally on experience/training and rules and procedures. The United States cultural values are almost identical to those of Australia therefore it would become easier to adopt the act local, think global approach.

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Table 3: Hofstedes cultural values of Australia and the United States. Sourced: http://geerthofstede.com/australia.html

iv.

CURRENT STRATEGY

Currently DJ uses a functional level strategy which according to Jones (2009, pg. 105), is a plan of action to strengthen an organization's functional and organizational resources, as well as its coordination abilities, in order to create core competencies. By DJ focusing on their capabilities and core competencies, they can provide and further develop operations of their business. By developing their resources (strengths in the SWOT analysis) they are able to constantly improve and develop new and innovative ideas to target their market. Doing so will not just increase their innovation but also their reputation as a high quality retail department store. David Jones currently uses a differentiation competitive strategy within their stores by selling many different products and brands. They strive to provide high quality products while introducing new brands each year. Products are put through scrutiny to make sure that only the best products make it into the store. Through this strategy measures and plans are put in place to achieve a wider customer penetration, such as the introduction of Omni-channel retailing. This strategy pushes DJ to adjust its supply chain to better suit the consumer demand. DJ has also invested in technology, both through their online presence and investment in updating their POS system.

PART 2: INTERNATIONALISATION David Jones will need to undertake geographic diversification. This refers to a product entering international markets in regards to geographical and cultural countries. (Peng, 2014, pg.269). DJ is limited to a very saturated and small market in comparison to its international counterparts so there is significant gain in internationalising. Like any company, the ultimate goal is to grow and by diversifying its operations geographically, DJ can increase its brand, employment and profits to shareholders. Research has suggested that for DJ to be successful in an international context, it will need to assess both its needs and wants for the foreseeable future. Sales and profits have been slowly declining in the Australian market, consumers are switching to cheaper brands and share prices have fallen on the ASX (Australian Stock Exchange) for DJ. There is a call for DJ to adjust its strategy to increase these factors and internationalisation is the key. DJ needs to find a location where they can place their 8

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operations, increase their consumer base and effectively incorporate their industry, resource and institution-based factors. They will need to highlight their resources, capabilities and core competencies that can be used in the new destination successfully, have a similar or workable industry in which they can compete in and be able to adjust and work comfortably within the new culture and laws and regulations. The first issue is to locate a region where DJ can place its organisation and flourish. The survival of DJ depends on the level of the customers willingness to buy in the new region, otherwise known as the buying power and will be affected by the current level of employment in the business area, income taxes, saving and taxes. DJ is in a strong position where these four elements positively affect their customer perception and profits. CEO Mark McInnes intention for the establishment of David Jones stores are to concentrate on "low risk, high-value locations. The location chosen is one similar to the needs and wants of the company. With a relatively stable and secure market, America is the chosen destination for DJ to enthusiastically expand to. Marin is a region in the South Francisco area which is characterised by a flourishing, populated and high income area. According to Barker (2012) the average income per capita is approx. $91,480 US, achieving the fifth highest income per capita in the United States and the lowest unemployment rate in California. This California region is known for being a high fashion area. DJ should continue to market towards the highend consumers, providing high quality goods.

Image 1: Google Map image of Marin CA. Sourced: maps.google.com.au

Establishing the right location for a store in the international market will be crucial for the success of the initial establishment. This procedure refers to the extensive international scope where DJ will go beyond it geographical and cultural similarities. Previously anti-trust laws were established in US to stop large players controlling the market. However, entry barriers have now been removed and overseas businesses are now able to enter the American market. United states laws and cultures will now need to be investigated and implemented to ensure campaigns, advertising or customer service are directly aimed at the targeted consumer market. The method of business entry chosen for DJ is a merger with a similar competitor. Post to entering, DJ needs to prioritise their goals and the level of commitment and contractual relationship they want to get involved into. DJ has sufficient amounts of retained earnings to invest in the global market. A retail department store such as Macys is perfect for DJ to begin its trading with. An already established and successful company can provide DJ the exposure and foot traffic it needs to be recognised and increase its consumer base. The merger can begin with just the sale of DJ clothing range and slowly begin to incorporate the rest of their range from accessories to shoes and bags. Once DJ becomes grounded and comfortable with 9

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consistent sales, it can begin to look for a stand-alone premise where it can start to grow its department store from the profits made. DJ should expect to be in a merger for most of the 24 month time period. This is to ensure that sufficient profits can be made while maintaining the exposure and foot traffic of consumers. Merging with a competitor was the best choice given the alternatives because of the benefits received from the three views. The industry-based view takes into consideration the positive effects received including enhanced market power, helping to overcome barriers of entry, reducing the amount of risk in comparison to a wholly owned subsidiary and gaining economies of scope. The resource-based view provides support including leveraging DJ capabilities and obtaining access to complementary resources and learning new skills and talents from the merging company. Lastly the institution-based view provides DJ to take advantage of globalisation in the new technological era, responding to the trends in the market and industry. From this arrangement, a positive transaction cost analysis can be seen (where the benefits exceed the costs of these benefits) for DJ to internationalise. The amount of capital that they invest initially can be repaid tenfold if they successfully penetrate the market. When operating in this market, DJ will need to focus on their strategies, the goals and objectives they set (milestones, time periods etc.) to optimise their opportunities and strengths and minimise their weaknesses and threats. Routine feedback and review points should be undertaken to see whether strategic plans have been implemented and whether marginal benefits have exceed marginal costs. At the beginning of the transition it will be expected that costs will exceed benefits as start-up costs may be high and future operations unknown but as the company becomes more strategically positioned in the market their benefits should exceed costs. DJ will need to remain competitive once they have achieved their chosen level of sales and customer retention. This has to be done through strategizing (e.g. dropping prices over other competitors /dropping prices because other competitors dropped theirs). DJ will need to discuss their modes of actions, whether they implement a thrust, feint or gambit into the market and can be determined by the awareness, motivation and capabilities of the company (McConnell 2011, pp. 189). It is crucial that DJ takes sufficient caution when implementing the strategic plans as failure can occur through both overpayments for targets and in integration (Hiatt 2011, pp. 45). The company may overestimate its own ability to create significant value in an overseas context; cultures may not integrate, not being able to address foreign cultures, wants, needs or business systems. Clashes may occur from intense competition from local competitors and DJ may experience a liability of foreignness which relates to the inherent disadvantage of foreign firms in comparison to their local counterparts due to their non-native status (Peng, 2014, pg. 167).

PART 3: RECOMMENDATIONS From the analysis it is highly recommended that David Jones should operationalize internationally. Given their available capital, strong business model and successful business culture, David Jones is likely to succeed in an international context. Through this, DJ can transform its current function-level strategy into a business-level or even corporate level strategy. A timeline for DJ to successfully implement and operationalize their international venture would consist of the following:

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Establishing a strategic plan (using company resources) and objectives for the company to meet at particular time periods (quarterly) and milestones (certain sales targets or new store openings). Developing a mission and strategy to do this (e.g. expand operations in the San Francisco area with a planned capital budget). Undertaking further extensive specific market research on the town and state where the operations will be extending. Investigate countries laws, currency exchanges, requirements for business operation and culture. Undertake research regarding operation of their new value chain analysis - source suppliers (closer supplier such as Mexico or whether it will be same as Australian suppliers). Plan costs and expenses for time periods (current, 6 months, and 1 year). Horizontal Merger (merge with competitor) with Macys (in the short term) and plan for a stand-alone store (in long term). Employ staff (take some staff from Australia on a temporary basis to train and familiarise local staff of business culture and principles) and incorporate David Jones business culture into new location. Mass advertising (short and long term advertising to gain and retain employees).

It is important for DJ to undertake milestone analysis at each point to ensure plans are going according to schedule and if they are not on schedule then alternatives can be arranged. The ultimate success of DJ operationalizing lies within the ability to utilise their capabilities and core competencies, to understand and integrate effectively within their industry and product market and whether they are able to tap into and adjust to the new laws and culture. An evaluation of their performance is also a good way to assess the success or failure of the actions. This can be done through equity (capital received from action), learning and experience, nationality (intercultural issues) and relational capabilities (assessing what has been learnt from the entire experience). There is an urgent call for DJ to change its long-term strategies into more global-orientated. David Jones is fully equipped with the right capabilities, business culture and positive outlook to consider the option of becoming a Multi-National Corporation. Its up to date fashioned products, technologically savvy and innovate business model are all evidence of future potential success of the company.

Word Count: 3867

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REFERENCES
David Jones 2012, Annual Report 2011-2012, retrieved 19 May, <http://www.davidjones.com.au//media/Files/Corporate/Presentations/2012/David%20Jones%202012%20Annual%20Report.ashx> David Jones 2010, David Jones Future Strategic Decision, retrieved 4 May 2013 <http://www.davidjones.com.au/-/media/Files/Corporate/Presentations/2012/Mar-12-Future-StrategicPresentation.ashx> Greenblatt, J 2005, The Little Book That Beats the Market. New Jersey. John Wiley & Sons. Greenblatt, E 2010, DJs prepares to party after its $250m facelift The Age, 11 August, retrieved 10 May, <http://www.theage.com.au/victoria/djs-prepares-to-party-after-its-250m-facelift-2010081011y99.html> Hitt, A & Ireland, D 2009, Strategic Management: Competitiveness and Globalization, Hoskisson Cengage Learning Hodgkinson, G.P 1997, The Cognitive Analysis of Competitive Structures: A Review and Critique, Human Relations, vol 50, no. 6, pp 625-654. Hofstede Centre 2013,What about Australia?, retrieved 4 May 2013 < http://geerthofstede.com/australia.html> IbisWorld 2012, Australian industry analysis, retrieved 15 May, <http://clients1.ibisworld.com.au/reports/au/industry/default.aspx?entid=405> McConnell, C.R & Brue, L & Flynn, S.M 2011, Economics: principles, problems, and Policies, 19th edn, McGraw-Hill/Irwin, New York Maylie, D 2011, Nestl article about Emergence into African Market. Retrieved 14 May 2013 <http://online.wsj.com/article/SB10001424052970203537304577028422773102732.html accessed> Macinnis, A 2010, Keeping up with the David Joneses, retrieved 23 May, <http://www.dibbsbarker.com/publication/Keeping_up_with_the__David__Joneses.asp> Peng, Mike W 2014 Global Strategy, 4th Edn, South Western Cengage Learning, Mason, OH Porter, M.E 1979, How Competitive Forces Shape Strategy, Harvard Business Review, March/April 1979, pp. 26-58. Scott A 2002,Competitive Dynamics of Southern California's Clothing Industry: The Widening Global Connection and its Local Ramifications Journal of Urban Studies, vol. 39, pp1287-1306, doi: 10.1080/00420980220142646 Web Archive 2012, David Jones History, retrieved 24 May, <http://web.archive.org/web/20080415055105/http://www.davidjones.com.au/about/story_of_djs.jsp> Weller, S 2007, Retailing, Clothing and Textiles Production in Australia October, retrieved 4 May 2013, < http://www.cfses.com/documents/wp29.pdf >

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APPENDIX Appendix 1: SWOT analysis of David Jones

ELEMENT
Strengths Weaknesses Opportunities

SWOT ANALYSIS OF DAVID JONES LIMITED

Australias population lies around 22 million, where 60% are classified as middle income earners and 20% accounting for high income earners. Leading branded store in Australia Their stores are located in low risk but high value locations Contain a variety of products and brands Online presence Establishment of black and white blog to cater to computer savvy customers Long history- established in 1838, giving a sense of security and strength for consumers and suppliers. Innovative and constantly growing and developing (through R&D teams) Strong focus on customer service Solid financial position Constant flow of new products and brands Recruitment, selection and retention of employees Good strategic position only major direct competitor in Australia is Myer. Supply chain management Business and work culture Skills and knowledge of employees (organisational, explicit and tacit) relating to specific products and market Marketing research and product marketing Respond to the changing consumer needs for the 21st century landscape/ ability to forecast future needs e.g. fashion Effective organisational structure and manufacturing process Industry research ability Ability to innovate new fashion-based clothes and other products Australia is a fashion-rich country Due to the high variety of products and brands, brand switching is high and the loyalty is relatively low Their operating efficiency not as good as competitors Reduced sale profits (decreased 66% from 2011-2012) Decreasing Household income spending in Australia and more focus on saving Only one real strategic group in the local market (Myers), compared with the US where there are around a dozen Strong and well-known brand name High amounts of capital to expand internationally Opportunity to expand operations internationally Increasing and intense direct and indirect competition Threat of cheaper imitations Decreasing consumer sales
Sourced : Porter (1970)

Threats

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Appendix 2: VRIO Framework analysis of the capabilities within David Jones.

RARE

VALUABLE

COSTLY TO IMITATE

NON-SUBSTITUTABLE

Effective management and logistics Supply chain management David Jones culture Skills and knowledge of employees (organisational, explicit and tacit) relating to specific product and market Training and development of employees Recruitment, selection and retention of employees Efficient control and maintenance of product inventories Marketing research Product marketing Brand development Customer service New Products Sponsorship (childrens sporting events/ athletes) Top market leader in industry markets Respond to changing consumer needs for the 21st century landscape/ ability to forecast future needs Effective organisational structure Diversifying and expanding size and success of company Good financial position

No No Yes Yes

Yes Yes Yes Yes

No No Yes Yes

No No Yes Yes

Yes No Yes No No Yes No No Yes Yes Yes/No

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

No Yes Yes Yes Yes Yes No No Yes Yes Yes

No No Yes No No Yes No No Yes Yes No

Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes

Yes Yes No Yes Yes No Yes

Yes Yes Yes Yes Yes No No

Effective manufacturing process R & D activities (teams and processes) Industry research ability Ability to innovate new products/enhance existing products or ideas Yes No Yes

Sourced: Peng (2014, pp56).

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