Research Methodology

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Research Questions:

Two research questions are generated from the problem and the purpose defined for this research. First of all, how are leading companies utilizing the concepts agility under agility models? By actually analyzes companies’ practices and presenting in a categorized way, it should a much clearer way to allow understanding of how agility work in real-life business environment.

Furthermore, the second question arises is “what are the commonalities followers from most types of industries could refer to?” It has been suggested that business theories are at no use if not connected and actually used in the business context.

Thus, by inferring the research findings into suggestion to future entrants of the agility enterprise, it should be able to provide the potential entrants with guidelines on their transformation.

1.3 Research Methodology

This section presents the author’s proposed method to proceed with this research.

This section begins with the description of the case study method of research. It is followed by the description of case selection used in this study. This section will then be concluded by the graphic representation of the author’s conceptual research procedure.

1.3.1 Case Study

According to the Harvard Business School (HBS), case studies could stimulate a realistic managerial situation with more intensity into the same amount of study. It is suggested by researchers that case study research focuses on an objective

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understanding of the dynamics of a real process, evaluating it in its natural context.

The case study method has been utilized in paramount amount in recent years because case study allows researchers to clarify and to solidify the concept under examination during the research topic’s early stages, when consolidated theoretical agreement is yet to be set among researchers in the topic. Although case studies work best guiding researchers through unfamiliar situations in the early stages of a theory, case studies are also ideal in researches that are supporting, verifying, or broadening the current theory or answering questions. (Vazquez-Bustelo, 2006; Yin, 1989; Eisenhardt, 1989)

With the proposed research questions in mind and considering the possibilities of different research methods, it is proposed that the case-study method is the most suitable way to allow the author in researching and addressing the utilization of agile principles and strategies in the leading corporations. Secondary data from past researches will be utilized and re-examined to see what these companies are doing under the newly proposed model, and find the reasons why and how these companies are adopting their agile behaviors.

1.3.2 Case Selection

Four companies are chosen as the targets for analysis in this research, which are Opel (Adam Opel AG), 3M (Minnesota Mining & Manufacturing Company), John Deere (Deere & Company), and Airbus (Airbus Group). The chosen companies have proven themselves through their historical legacy in changing and adapting the change in either the front end (market, demand, etc.) or the back end (manufacturing technology, supply chain, etc.) or both. Such common characteristics exist among the companies as been recognized as successful international corporations and proven

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agility behavior in the history of the companies. Being successful in international operation is critical because complexity, uncertainty, and fluctuation increase when a company operates internationally.

In the history of Opel, the company has been able to lead its industry by manufacturing advancement with the adaption of the stream line manufacturing technique during times of heavy and uniformed demand. Furthermore, Opel demonstrated its ability in turning around from being almost totally destructed infrastructurally and politically to becoming a market leader again after the Second World War. Thus, it could be concluded from Opel’s history that the company is armed with competencies to accurately respond to the changes in the environment and in the market demand in a timely manner, making the company a perfect target for analysis under the agility topic. Furthermore, Opel’s competitive environment if filled with fluctuation in both technological advancement and customers’ tastes, making the company required to continuously changing the designs and product lineups from time to time.

At the same time, 3M is chosen because it is generally accepted as agile in researching and developing products with wide-range of expertise and competencies.

Moreover, 3M receives more than 58% of its revenue from 196 countries reflects the company’s complex competitive environment. The company’s ability to introduce appropriate product portfolio globally according to different market characteristics and changes motivates the researchers to study the company’s agility strategy and behavior. Furthermore, 3M’s continuously reorganization of its internal business units is the key for the company to introduce products accurately according to the market demand. Hence, with 3M’s ability to innovating and introducing products into fill demand gaps on the market, the company distinguishes itself as a perfect case

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study to be researched under agility, to understand how the company works under the agility context.

Furthermore, Deere & Company (John Deere) is taken as a target for analysis in this research because of the company’s ability to expand its product portfolio from the very core competency to adjust and to evolve along with the market. Begins as a tractor manufacturer, the company is currently among the biggest manufacturers in tools and machineries. The company’s ability to leverage its core expertise to penetrate into different industries triggers the author’s interest into researching the company’s practices that allows the company’s achievements. Furthermore, while John Deere’s product frameworks are pretty fixed, the company compensates by designing its manufacturing processes specifically allowing details of the products to be specified by its customers. Moreover, even though the customer demands of John Deere do not change frequently, the company faces severe market pressure in the variation in demand across markets. The company has been successful in introducing the correct product portfolios into all the markets that it entered, making John Deere a good target worth researching its agility practices.

Lastly, Airbus is admitted into this research because of its legendary competition with the United States based Boeing. Established in 1972, 14 years lagged behind Boeing, Airbus quickly turned the situation around in terms of market share in aircraft sales. Unlike Boeing that is subsidized sole by the US government, Airbus’s subsidy comes from the European Union, which means Airbus carries certain social responsibility to operate and to balance the economic condition in the EU. Thus, the cooperation, both internally and externally, relationship between Airbus and its supply chain becomes much more complicated than that of Boeing. While the relationship within a company’s supply chain is one of agility’s critical aspects, Airbus’ distinctive

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expertise in supply chain motivates the author in researching and further understands the subject matter.

Each of the four chosen companies distinguishes itself in some aspects that worth further researching under agility frameworks. By analyzing the four company’s agility practices, it may provide future companies transforming into agility with hints and inspirations.

1.3.3 Research Procedure

This thesis follows the proposed procedure as described below. It begins with delivering the basic concept of enterprise agility (business agility), followed by formal literature review of agile concept defined academically to establish the framework of agility that is used to breakdown and analyzes the targeted enterprises’ agile practices.

Finally, discussion and conclusion is made on the commonalities found in the analyzing process. Graphic representation of the research procedure is shown below.

Purpose Definition

Literature Review

Generation of Conceptual Model

Case Analysis

Case Discussion

Conslusion

Figure 1: Conceptual Research Procedure

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