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

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.

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…

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..

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

… 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.

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

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

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

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

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

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.

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

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

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

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

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

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