Impact of critical value chain activities on product performances in process industry : a case study of Korsnäs AB

Abstract: Problem: What are the most critical activities for process industry? Whether general view of impact of these value chain activities on product performance (quality, cost and innovation) applied to process industry? How do those activities impact to product performances? If they cannot affect product performance, what could be the reason behind it?   Purpose: This paper aims to conclude general view of impact of value chain activities on product performances (quality, cost and innovation). Accordingly we would create a conceptual model. And then test whether this model applies for process industry and further more figure out the reason behind through case study.   Methodology: In this paper, qualitative research is our approach. We choose single case study as research strategy and conduct three interviews. Documentation and interview data are collected and analyzed to provide theoretical framework and empirical evidence for the whole paper.     Result: Based on case study, and previous work, the model concerning impact of major activities for process industry (Marketing sales, Human Resource and Supplier management) on product performances (Quality, Cost and Innovation) is derived. This model contains answers to nine hypotheses assumed in theoretical part, giving reader a new and easy way to understand process industry.        Conclusions: Distinguished from other industry, process industry with its own unique characteristics does not lend support to all nine hypotheses. Fundamental analysis proved that some assumptions do not establish for process industry while the others may have more significant relationships. To be specific, there exists strong impact of human resource on product quality and cost, supplier management on product cost and also marketing and sales on product quality. But, to our surprise, the other assumed relationships are not that significant while product innovation has adverse affect on marketing and sales.