Design management and learning environments: a ...

IX Simposio Internacional de Ingeniería Industrial: Actualidad y Nuevas Tendencias 2016 Porto Alegre, Brasil Octubre 19, 20 y 21, 2016

Design management and learning environments: a case study in Brazilian garment industry Cláudia De Souza Libânio1 – [email protected] Fernando Gonçalves Amaral2 – [email protected] Sérgio Almeida Migowski3 – [email protected] Francisco Dias Duarte4 – [email protected] 1

Universidade Federal de Ciências da Saúde de Porto Alegre, 2Universidade Federal do Rio Grande do Sul, 3Instituto Federal do Rio Grande do Sul, 4Fundação Saint Pastous Abstract The dynamism of the garment market requires constant innovations and launches of new products to keep up with the trends of this industry. Thus, product development cycles need to be shortened to respond to this dynamics. This shows the relevance of design management, which participates all the way from elaborating strategies to following product acceptance on the market, with a critical look at determining factors. Therefore, this article aims at identify phases of the product development in six Brazilian firms that were inserted in the garment industry in order to encourage learning environment on design management. The method used was exploratory, following a qualitative approach and conducted through a survey of literature and in-depth interviews with six different companies belonging to the garment industry. We identify phases and characteristics of the product development process, which are decisive to encourage learning environment on design management. We find out that the creation and occurrence of knowledge and information are clearly perceived, be it from individual practices and routines, or even from the integration of work teams. In-house arrangements, work routines and a system of processes might help map these occurrences making it possible to have a learning environment in design management.

Key Words: Design Management, Learning Environments, Product Development, Brazilian Garment Industry 1.

Introduction

The garment industry has specific characteristics such as: it is close to the end consumer and a great number of agents are involved in its production system by outsourcing. At the same time, as the latter factor requires strong managerial control of the production process, enables speedy product development. In the world context, Brazil is among the four main countries producing textile articles (ABIT, 2010). As competition increased, new products entered the Brazilian markets and advances occurred in communications technology, the consumers became more demanding and the market was obliged to review its strategies. Therefore the businesses in the garment industry began to direct their look at market movements such as: logistic and technological advances, speedy creation, development and dissemination of products, agility, responsiveness and organizational flexibility (CHRISTOPHER; LOWSON; PECK, 2004), the substitution of emphasis on production to products with greater added value, using design, technology and innovations, besides the effective management of the supply chain (MASSON et al., 2007).

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IX Simposio Internacional de Ingeniería Industrial: Actualidad y Nuevas Tendencias 2016 Porto Alegre, Brasil Octubre 19, 20 y 21, 2016

The dynamism of the garment market requires constant updates of raw materials, changes in colors and textures, innovations and launches of new products to keep up with the trends of this industry. Thus, the product development cycles must be shortened to respond to this dynamics. However, many are involved throughout the product development process, with different competencies and expertise. In order to the product development process elapses efficiently and effectively, there must be a frequent communication among those involved and therefore share information and knowledge constantly that offers an established organizational learning environment. Sometimes it is possible to observe in organizations that work teams develop their activities in isolation, without sharing information with the other participants of a project. This shows the relevance of design management in learning environments, which participates all the way from elaborating strategies to following product acceptance on the market, with a critical look at determining factors relating to processes, agents involved, knowledge and information. Therefore, this article aims at identify phases of the product development in six Brazilian firms that were inserted in the garment industry in order to encourage learning environment on design management. 1.1. Competencies, learning, capabilities, and knowledge Competencies, learning, resources, capabilities, and knowledge span the concept of design management. Borja de Mozota (2003, p.71) defines design management as “the implementation of design as a formal program of activity within a corporation by communicating the relevance of design to long-term corporate goals and coordinating design resources at all levels of corporate activity to achieve the objectives of the corporation.” According to Retour and Krohmer (2006), the attributes of the collective competencies are related to: common referential, shared language, collective memory, subjective engagement. Belkadi, Bonjour, and Dumet (2007) point out that the competencies are activated from qualitative characteristics of work situations. And the construction of these can occur from reviewing past projects. The authors stress in their work the connections of the competencies with knowledge and situation. These work situations can also be understood as organizational routines, which can represent unique and specific resources of a firm when combined with the tacit knowledge. Ahuja and Katila (2004) argue that companies create unique scientific and geographic research paths, which probably will lead to the creation of heterogeneous resources. Tacit knowledge and organizational routine are evident as important aspects of the Resources Theory since they can be considered as unique and specific resources of the company and as being hard to be imitated by the competitors. These unique resources are hard to be imitated and present great difficulty to be transferred from one firm to the other. Barney (1991) follows heterogeneity and immobility assumptions to list four attributes related to the resources that firms must have in order to achieve the sustainable competitive advantage: rarity, value, difficulty to be imitated, and inability to be replaced. Borja de Mozota (2003) highlights that “building a competitive advantage through internal resources is strategic.” Thus, according to Davenport and Prusak (1998), the resources can represent a competitive advantage for the organization in relation to their competitors. Bertola and Teixeira (2003), Capaldo (2007), and Davenport and Prusak (1998) state that knowledge is in organizational routines, processes, practices, and norms. Knowledge is a strategic resource for the organizations and can be "embedded" in organizational routines (CHEN, 2005). Companies can also foster routines of knowledge sharing (CAPALDO, 2007). Not only sharing knowledge (OSTERLUND; LOVEN, 2005; RIEL; TICHKIEWITCH; MESSNARZ, 2010; BONJOUR; MICAELLI, 2010), but also more specifically expertise, knowledge for the engineering design process, collaborative knowledge, the know-how and knowledge related to the development of communication, which generate much information 2

IX Simposio Internacional de Ingeniería Industrial: Actualidad y Nuevas Tendencias 2016 Porto Alegre, Brasil Octubre 19, 20 y 21, 2016

and new knowledge (ROBIN; ROSE; GIRARD, 2007). Thus, by analyzing the relationship between knowledge and practices and the specific field of design, the relevance of understanding design as a multi-disciplinary activity in the organizations. Belkadi, Bonjour, and Dulmet (2007) add that design can be interpreted as an activity that can generate new knowledge and integrate heterogeneous knowledge. Other studies address tacit and explicit knowledge related to design (BERTOLA; TEIXEIRA, 2003; OSTERLUND; LOVEN, 2005). Jevnaker (1993) stresses the tacit knowledge as an advanced competence in the actions of more experienced professionals. The ability to transfer and implement tacit knowledge, understood as a strategic resource (SUBRAMANIAM; VENKATRAMAN, 2001), is another key issue that meets the range of the competitive advantage in the organizations. The authors also add the difficulties in coding and transferring tacit knowledge because of different cultures, preferences, habits, and traditions of particular regions. The conversion of tacit knowledge into explicit knowledge (OSTERLUND; LOVEN, 2005) or even the conversion of knowledge in individual level to the organizational level (OSTERLUND; LOVEN, 2005) and the transfer of both tacit and explicit knowledge between organizations (GANDER; HABERBERG; RIEPLE, 2007; CAPALDO, 2007) are issues that collaborate to the spread of knowledge and strengthen the design management in organizations. However, frequently, the design knowledge is tacit, according to Borja de Mozota (2003). Thus, this would be difficult to code, process or even transmit because of its intuitive and subjective nature. Nonetheless, according to Nonaka and Takeuchi (1995), for the companies to create organizational knowledge, they must seek convert tacit knowledge to explicit knowledge and then into tacit knowledge. Davenport and Prusak (1998) stress that, once there are no formal policies and processes of knowledge, the informal and self-organized networks in the organizations can conduct and generate knowledge and innovative thought. Borja de Mozota (2003) also adds that the design can lead knowledge "to the various stages of development of new products regarding changes in process, creativity, and dynamics of teamwork.” Thus, knowledge can be understood as an experience accumulated over time and that must be communicated and shared in an organization. Therefore, according to Riel, Tichkiewitch, and Messnarz (2010), it is clear the relevance for the organizations to have a constant learning culture. This statement has a strong connection with the thoughts of Prahalad and Hamel (1990), who mention learning and collective work at the company as a central competence. Borja de Mozota (2003) adds that, while highlighting that the development of new knowledge capacities, both individually and in the organization, collaborates to build a central competence in the firm. The development of the competencies is associated directly with the organizational learning process (OSTERLUND; LOVEN, 2005). The perspective of the dynamic capacities, according to Teece, Pisano, and Shuen (1997), encourages learning new abilities and analyses the internal and external strengths of the company. Eisenhardt and Martin (2000) stress that the dynamic capacities provide the articulation of resources, that is, integration, reconfiguration, and gain or loss are strongly related to the routines of the organization. Thus, Berends et al. (2011) relate these capacities to the design management and Mutanen (2008) stressed the relevance of articulating the design in the organization and the collective work. On the other hand, Bonjour and Micaelli (2010) gather these two aspects and conclude that the integration of all these organizational capacities can produce a central competence in design.

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IX Simposio Internacional de Ingeniería Industrial: Actualidad y Nuevas Tendencias 2016 Porto Alegre, Brasil Octubre 19, 20 y 21, 2016

2.

Methodological Procedures

The method used in this study was exploratory, following a qualitative approach and conducted through a survey of literature and through in-depth interviews with six different companies belonging to the garment industry. Malhotra (2012) says, regarding qualitative research, that this is a non-structured, exploratory research methodology based on small samples, enabling a better perception, and understanding of the problem involved. Gil (2002) also highlights that the use of the study of multiple cases “provides evidence inserted in different contexts”. The sample is nonprobabilistic, chosen by convenience. One semistructured script was elaborated for use in the in-depth interviews. According to Malhotra (2012), specialists are people well-informed about the subject and sector in which they work. The data were obtained from primary sources and the research procedure used was a direct and personal approach in the interviews. In order to ensure the anonymity of the interviewees, companies are identified as Company A, Company B, Company C, Company D, Company E, and Company F. The content of the data collected was analyzed through content analysis technique (BARDIN, 2005), aiming to achieve the objectives of this research. The results and discussion were gathered respecting the content analysis technique. 3.

Results and Discussion

The aspects analyzed were classified into four discussion groups: companies’ characteristics; communication, interactions, and learning in design management; learning environment and collective competencies in design; and determinant phases of the product development for learning environment. 3.1. Companies characteristics Company A is a small 36-year old family business operating in the south of Brazil. Its production is outsourced and its end product is directed at young women. Company B, on the other hand, although large, outsources its production entirely. It has been on the market for 49 years and began its activities as a family business. Later it was sold to a group of investors. It serves men, women, and children, with over 200 stores in Brazil. Company C is a mediumsized family business with its own production and has operated for 19 years in the export of sports products for the female public. It recently opened its first store in Brazil and it is beginning a franchising project. The production of company D is entirely outsourced to China. This company is medium-sized and has been on the market for 38 years. Its target public is male and female sportspeople. Company E has been on the market in the south of Brazil, for 28 years. Although small, it has its own production, outsourcing only 30% of it. Comprising a network of more than 20 own stores, company E is present in other states of Brazil through the franchising system. It defines its target public as young female executives. Company F is small; it is present in two states of Brazil, with a total of 9 own stores. It has been on the market for eight years and its target public is adult males. It outsources all of its production. 3.2. Communication, interactions, and learning in design management According to the interviewees from companies B, C, and F, the design, marketing, and sales departments should work linked to each other so that there are evolution and harmony at the time of creation until the validation of the collection to be produced. Jevnaker (1993) stress the relevance of the interactions between design, marketing, and business strategy. Girard and Robin (2006) state that the cooperation between the participants of a particular project helps the improvement of the performance of the design team directly when seeking sustainable competitive advantages in the organizations. Alegre and Chiva (2008) list other interactions, 4

IX Simposio Internacional de Ingeniería Industrial: Actualidad y Nuevas Tendencias 2016 Porto Alegre, Brasil Octubre 19, 20 y 21, 2016

such as: experimentation, dialogue, connection with the external environment. The design professional of the companies B and E also stress these moments as essential to follow the performance of the pieces created, while monitoring their acceptance by the final customers. According to Riel, Tichkiewitch, and Messnarz (2010), the communication between the participants of a project with much expertise generates a rich exchange of information and knowledge. This communication can occur through exchanging information, which is structured by an organization architecture (BONJOUR; MICAELLI, 2010) and by the internal communication (PERKS; COOPER; JONES, 2005; MOULTRIE; CLARKSON; PROBERT, 2007). The interviewees stressed that the learning times were critical to sustainable competitive advantage as well as the constant communication between the individuals of the design team and between the teams. The companies stated that they value and encourage the learning among the design professionals, whether through courses and training (B and C), travels (B and D), and workshops (A, B, and C). The internal learning among employees was highlighted as crucial by companies A, B, D, E, F. It is often from this learning that tacit knowledge is transmitted from one professional to another (NONAKA, 1991), either through training, meetings, conversations or even following the work routines and processes, with an intentional or unintentional action. Sharing knowledge (OSTERLUND; LOVEN, 2005; RIEL; TICHKIEWITCH; MESSNARZ, 2010; BONJOUR; MICAELLI, 2010), but more specifically expertise, knowledge for the engineering design process, collaborative knowledge, the know-how and knowledge related to the development of communication, generate much information and new knowledge (ROBIN; ROSE; GIRARD, 2007). Calantone et al. (2002) stress that intraorganizational knowledge sharing is an important component of learning orientation in innovative firms. Vargas (2013, p.58) relates that “organizational learning is supported as a construct that combines within a dynamic and spiral process of knowledge conversion from the individual and team level, that is individual and team tacit and explicit knowledge”. Baker and Sinkula (1999) highlight a relation of market orientation and learning orientation on organizational performance. Riel, Tichkiewitch, and Messnarz (2010) stress that the organization of the learning creates a positive culture of learning and synergy, where it is possible to learn from the mistakes made and with the team. Osterlund and Loven (2005) state the organizational learning is an essential condition to make changes. The company must create conditions for the internal learning to occur. According to Baker and Sinkula (2002), organizations need organizational learning for the successful launch of new products into the market to achieve sustainable competitive advantage. Farrell (2000, p. 201) corroborate stating that “a market orientation is positively related to a learning orientation and that a learning orientation has a stronger significant positive effect on business performance than does a market orientation”. Vargas (2015) confirms the positive relationship of learning orientation values on innovation and high performance firms. 3.3. Learning environment and collective competencies in design In the case of collective memory, part of the collective competencies, the interviewees position is clear about valuing learning and congregation the collaborators and about registering information in the virtual systems or servers. Designers also highlighted these collective competencies, whether in the learning between individuals (companies A, B, C, D, E, F) or in the storage of information and data from previous collections in virtual or physical systems (companies B, C, E, F) and histories of productive processes (company H). This learning between individuals can occur through building networks (BERTOLA; TEIXEIRA, 5

IX Simposio Internacional de Ingeniería Industrial: Actualidad y Nuevas Tendencias 2016 Porto Alegre, Brasil Octubre 19, 20 y 21, 2016

2003; CAPALDO, 2007; BROWN, 2006; DELL’ERA; VERGANTI, 2009) or even through combining internal and external resources (BERTOLA; TEIXEIRA, 2003; BRUCE; COOPER; VAZQUEZ, 1999). Libânio et al. (2015) state that competencies strongly permeate the concept of design management and that, when articulated, can assist in structuring and integration of design teams and stakeholders involved in design management. On the other hand, the creation and occurrence of organizational knowledge provide a learning environment in the companies. As organizational knowledge, Bertola and Teixeira relate to the “knowledge embedded in organizational routines, processes, and practices, as well as tacit and explicit knowledge possessed by employees” (BERTOLA; TEIXEIRA, 2003). The six interviewees of the companies researched stressed that the creation and occurrence of knowledge and information is clearly perceived, be it from individual practices and routines, or even from the integration of work teams. Liu et al (2002, p. 378) state that “learning orientation of an organization entails knowledge creation and cultivation from all levels within that organization.” In-house arrangements, work routines, and a system of processes might help map these occurrences making it possible to manage the design activities and resources involved in design management. 3.4. Determinant phases of the product development for learning environment From the mapping of the development process of garment products (Figure 1), it was possible to monitor and evaluate the knowledge and current information during the workflow, identifying articulations and intervening factors in a learning environment on management design. Baker and Sinkula (1999) state that learning enhances firm performance, specifically in market share, success of new product, and overall outcome. Through the data collected in this research, a workflow was elaborated as follows: the initial step, when strategies are defined and guidelines and the concept for the new collection are elaborated; the step of researching and identifying trends; the moments of creation of the collection, when there is an exchanging, and retention of information and key / strategic knowledge as well as the team groups with different expertise for discussion and validation of collection; the production of a pilot piece and collection as a whole; the review and quality control; the stage for transmission of the "mood" of the new collection to the managers, sellers, and retailers at the sales outlets as well as the commercial representatives; and market monitoring, through both data analysis and direct contact with the consumers at the sales outlets or in virtual contacts.

Figure 1. Determinant phases of the product development

Regarding the stage for elaborating strategies, guidelines, and concept for the new collection, it is stressed that the strategies must be imbued with the sense of design understood as a value by the company. Bruce et al. (1999) state that designers need information about the projects, as market data, specificities of production, prices, plans, and deadlines to be met for a better alignment with the initial briefing. From the definition of the guidelines for the new collection 6

IX Simposio Internacional de Ingeniería Industrial: Actualidad y Nuevas Tendencias 2016 Porto Alegre, Brasil Octubre 19, 20 y 21, 2016

and its products, there is the trend research stage going from monitoring the acceptance of the product by customers, through the identification of demands, concept definition, selection of suppliers, development of pilot parts, product design, production, quality control, dissemination, distribution of products, to the monitoring of consumer satisfaction by the company, as shown in Figure 1. It is important to stress that, once all the interviews are grouped, there is the participation of someone responsible for the design, whether the designer or the stylist or the director of the style department, on the steps of the workflow reported by the interviewees. It should also be noted that each step requires data, information, and skills that require the involvement of different individuals, teams, sectors, and raw material and/or services suppliers, thus comprising multidisciplinary teams and providing a learning environment. The presence of a representative of creation at every stage, whether it is the designer or a style director, is necessary to follow-up and to monitor each piece along the workflow, as shown in Figure 1, acting directly or indirectly. Kotler and Rath (1984) emphasize that designers should participate in all stages of products' development, interacting with the areas involved in a particular project. 4.

Conclusion

This article examines determinant phases of the product development in six Brazilian firms that were inserted in the garment industry in order to encourage learning environment on design management. From the data collected in the interviews, it is seen that the companies in the garment industry must have a priority look at some stages of development of products, such as: the initial step, when strategies are defined and guidelines and the concept for the new collection are elaborated; the step of researching and identifying trends; the moments of creation, exchanging, and retention of information and key / strategic knowledge; the stage of team groups with different expertise for discussion and validation of collection; the stage for transmission of the "mood" of the new collection to the managers, sellers, and retailers at the sales outlets and the commercial representatives; and market monitoring, through both data analysis and direct contact with consumers at the sales outlets or in virtual contacts. These phases and characteristics of the product development process are decisive to encourage learning environment on design management in Brazilian organizations inserted in the garment industry. In addition, we find out that, in the garment companies, the creation and occurrence of knowledge and information are clearly perceived, be it from individual practices and routines, or even from the integration of work teams. In-house arrangements, work routines, and a system of processes might help map these occurrences making it possible to manage the activities and resources involved in design management. References Ahuja, G., Katila, R. (2004). Where do resources come from? The role of idiosyncratic situations. Strategic Management Journal, 25, 887–907. Alegre, J., Chiva, R. (2008). Assessing the impact of organizational learning capability on product innovation performance: an empirical test. Technovation, 28, 315–326. Associação Brasileira de Indústria Têxtil e de Confecções, ABIT. (2010). Brasil têxtil 2010: relatório setorial da indústria têxtil brasileira. IEMI. Bardin, L. (2005). Análise de conteúdo. Lisboa, Edições 70. Barney, J.B. (1991). Firm resourced and sustained competitive advantage. Journal of Management. 7

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