Journal of Emerging Trends in Economics and Management Sciences: Home

Abstract:
Epistemological trends highlight most structural optimisation approaches are still strongly anchored or equated with the process and operational improvement methodologies such as the Six-Sigma?s DMAIC, supply chain optimisation, TQM, process re-engineering, value chain analysis and Taguchi methodologies. Considering the pace of change and globalisation inducing the increasing proliferation of new opportunities, new competencies, new threats and new business philosophies, a structural optimisation approach based largely on a process optimisation initiative may limit a holistic maximisation of the linkage of structures to strategy, people, processes, systems and methods to create more values and tap more opportunities. This research uses the interpretivist research paradigm to undertake in-depth critical analysis and social construction of the theories of structural optimisation methodologies and the empirical facts from twenty judgmentally sampled operations and marketing managers from twenty manufacturing firms. The motive of the study was to identify the major structural optimisation methodologies, the associated inhibitors and to extract a hybrid structural optimisation business model that businesses can adopt for improving structural optimisation as a market optimisation strategy. Besides process improvement methodologies (six-sigma & process re-engineering), findings herald structural optimisation is also often moderated by certain organisational re-engineering methodologies (restructuring, rationalisation & ERP), marketing and logistical techniques (centralised distribution channels in customer concentrationareas, and strategic alliances & partnerships to facilitate the sharing of facilities, resources &market outreach to deter threats in remote locations), skills and competencies to exploit the existing structures, and strategic management techniques like constant structural modifications and reconfigurations. These findings were socially constructed and extracted to enrich the existing theories on structural optimisation by suggesting a hybrid structural optimisation business model that introduces a new three structural optimisation principles (add-eliminate-adjust/modify) that the modern businesses can emulate in the undertaking of structural optimisation as a market optimisation strategy. The significance and impact of this research are reflected in the changing of the insight and the perspective of how structural optimisation can be holistically undertaken to not only match strategy, but also for businesses to create as enormous values and maximise as many market opportunities as possible using their existing business structures.

Keywords: market optimisation; structural optimisation; market performance; value creation

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