Closing the Gap – Moving to the Next Level: A Scoping Study

1. Closing the Gap – Moving to the Next Level: A Scoping Study EPSRC EP/D503981/1 Dr Jill MacBryde University of Strathclyde

2. Background • Current thinking is that in order to be competitive, UK companies need to move away from low skill, low value products and practices. • Instead they need to reposition themselves towards higher value positions in the value chain. • But the big question is “HOW?” • Research is now needed at the firm level to investigate how companies can make the move.

3. Research is needed… • ….at the firm level… to gather evidence as to what factors are important in helping companies to successfully step up from “the low road” as Porter puts it – and to make the transition to a higher level in the value chain; • ….which looks at organisations that have successfully repositioned themselves in the value chain; • ….which investigates the factors that helped these companies to reposition themselves…

4. But first…. • …before embarking on this research we want to validate the belief that companies who reposition themselves actually see improvements in productivity; • Therefore we need to bring together researchers from a variety of disciplines, and who use a variety of research methods and instruments, to carry out research which will really “cross the levels” in addressing the issue of closing the productivity gap..

5. Closing the Gap – Moving to the Next Level: A Scoping Study • Dr Jillian MacBryde, Strathclyde • Professor Neil Burns, Loughborough • Dr Marek Szwejczewski, Cranfield • Dr Beverley Randle, Bristol • Dr Delores Annon Higon, Aston • Dr Giuliana Battisti,Aston

6. …and so the need for a scoping study.. • to gather data to check our belief that companies who do move up the value chain really do achieve productivity gains; • to deliver a first class literature review that clearly identifies the key research questions; • to develop a methodology and research instruments, which will allow us to study organisations in-depth to learn what factors contribute to successful repositioning; • to test research instruments in the field before embarking on a larger scale investigation.

7. Progress to Date • Planning meeting in Aston, 24th May; • Developed project plan; • Agreed work-packages, deliverables and responsibilities; • Arranged 6 project meetings and agreed actions; • Advertised for a Research Fellow – deadline 14th Oct; • Groundwork started on literature review; • Formal kick-off end of October once position filled.

8. Workpackage 1: Literature review • Literature review which will position the research in the context of what has been done before and identify clear gaps in knowledge. • what does the literature tell us about how companies can fundamentally change position in the value chain? • What does the productivity literature say about the effects of this type of strategy - both at the level of firm productivity and at national level? • What are the gaps in knowledge? • What are the interesting research questions that remain unanswered? • Responsibility – Jill MacBryde

9. Workpackage 2: Stakeholder analysis • Stakeholder analysis. Parallel to the literature review this workpackage seeks to identify the key research issues: • for companies trying to reposition themselves, • for consultants (public and private) trying to assist them, • and for government bodies (eg. DTI, LECs) • and other agencies. • Interviews • Responsibility - Marek Szwejczewski & Bev Randle

10. 13 January - Aston • Presentation of findings of workpackages 1 & 2. • Discussion of emerging research questions

11. Workpackage 3: Secondary data collection and analysis • Identify 3 sectors on which there is enough data to carry out investigations into the following: • compare total factor productivity of similar companies within the sector over a 5 year period; • analyse partial factor productivity of similar companies; • identifying a couple of companies in each sector that have set about a strategy of repositioning over the past 5 years; • identify a couple of companies within each sector who have not employed a repositioning strategy; • to look at performance of these companies - looking at growth, value add, tfp etc. • One of the outcomes of this package will be a number of hypothesis or research questions • Responsibility - G Battisti & D Anon Higon

12. 13 & 14 March - Glasgow • Presentation of findings of workpackage 3. • Discussion of research questions and way forward, including presentation of draft methodology and research instruments. • Plan publications.

13. Workpackage 4: Development of research questions and instruments • Using the outline research questions and hypothesis coming out of workpackages 1, 2 & 3, this workpackage will develop clear research questions for the main research proposal and research instruments to be used. • Opportunity to refine these instruments • pilot case study • main case studies • The outcomes of this package should form the methodology section of the full research proposal. • Responsibility - Neil Burns

14. Workpackage 5 : Case studies • A pilot case study will be conducted to test and refine the research instruments • Further case studies (at least one in each sector) will seek to validate the research questions as well as further refine the research instruments. • We need to know the outcomes of workpackages 1,2, 3 & 4 before we really know what our research questions are going to be • why the companies decided to reposition themselves,how they went about it, advice they would give,what measures they used to monitor success etc. • Responsibility - J MacBryde, N Burns & M Szwejczewski

15. 28th April - Cranfield • Discussion of pilot case and review of research instruments. • Draft out project proposal.

16. 28th July - Aston • Presentation of draft findings of workpackages 4 & 5

17. Workpackage 6: Develop Full Proposal and Write Final Report for Scoping Study • Reflect, refine and develop full research proposal & final report. • This workpackage should allow us to deliver a research proposal in confidence that we have identified and validated clear research questions (workpackages) and have appropriate research instruments (workpackage ) • Responsibility - Jill MacBryde

18. 21st & 22nd September - Glasgow • Consider and refine draft proposal. • Plan publications. • Draft final report.