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If you knew there was a 79% bankruptcy risk by expanding your operations capacity, would you still try?

2017-7-2, Schwab, Leila, Gold, Stefan, Reiner, Gerald

The research aims at evaluating the risk taken by a growing company when it expands its operations capacity. Previous research has shown that effective decision-making process is key and its facilitation is a major purpose in operations management. A multi-method model is developed to simulate a growth phase and respective decision-making processes. Its calibration is achieved through empirical data of a Swiss family-owned wood construction company; then a compare runs analysis is conducted. Results show that more than 80% of runs, interestingly, lead the company to bankruptcy, which helps managers and counsellors to evaluate growth risks adequately.

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Sustainable business growth: exploring operations decision-making

2017-2-8, Schwab, Leila, Gold, Stefan, Reiner, Gerald

Purpose: The objective of this paper is to explore how operations decision-making may keep the growing firms within the boundaries of corporate and societal sustainability. Design/methodology/approach: We classify operations decisions during growth periods according to the three dimensions of the triple bottom line (economic, social and environmental). By means of a longitudinal case study of a family-owned wood construction firm that is in a process of intense growth, we identify, visually represent and analyse the complex sequences of selected managerial operations decisions. Findings: Our empirical data suggests that operations decisions made by managers during growth periods follow specific patterns. From our analysis, we derive various research propositions that investigate how a well-understood and therefore efficient and effective decision-making process can facilitate sustainable business growth. Research limitations/implications: Our findings offer opportunities for future studies to zoom in on specific parts of the decision-making process during growth periods. Moreover, given the exploratory nature of our study, future research should test hypotheses derived from our research propositions. Practical implications: This study investigates operations decision-making during growth, which is crucial for guiding companies through this complex transition phase. Originality/value: This conceptual and empirical analysis explores new theory and contributes to the vastly under-researched subject of sustainable business growth.