Manufacturing strategy-technology relationship among auto suppliers

Each manufacturing plant has to develop its own path to success based on contingencies and on manufacturing practices links. On the basis of the latter, this paper tests the link between two of the most important manufacturing practices areas, manufacturing strategy (MS) and technology, without addressing causality or their combined effect on performance. This is done by selection fit, i.e. congruency adjustment. However, this paper goes beyond grouping both sets of practices in pairs, by using a more general selection view version, with practices from both sets related multidimensionally and subordinated by regression analysis to test for any congruent pattern. Regression results from a wide-ranging survey of auto supplier plants show that, in general, MS seems to have some kind of impact on technology, and that technology has some kind of influence on MS. In addition, a strong congruency between both practices areas is observed when using correlation. This suggests that when implementing or adjusting MS or technology, the other should also be considered; otherwise they may not operate effectively.

[1]  Michael D. Shields,et al.  Mapping Management Accounting: Graphics and Guidelines for Theory-Consistent Empirical Research , 2003 .

[2]  Guido Nassimbeni,et al.  Factors underlying operational JIT purchasing practices: Results of an empirical research , 1996 .

[3]  Johannes M. Pennings,et al.  Structural contingency theory: A re-appraisal , 1992 .

[4]  Roger G. Schroeder,et al.  A FRAMEWORK FOR QUALITY MANAGEMENT RESEARCH AND AN ASSOCIATED MEASUREMENT INSTRUMENT , 1994 .

[5]  Roger G. Schroeder,et al.  The impact of just-in-time manufacturing and its infrastructure on manufacturing performance , 1997 .

[6]  D. Garvin Manufacturing Strategic Planning , 1993 .

[7]  Jan Greve,et al.  Forms of contingency fit in management accounting research—a critical review , 2004 .

[8]  A. R. Parker Impact on the Organizational Performance of the Strategy-Technology Policy Interaction , 2000 .

[9]  J. Nunnally Psychometric Theory (2nd ed), New York: McGraw-Hill. , 1978 .

[10]  S. Cohn,et al.  The structure of the firm and the adoption of process innovations , 1980, IEEE Transactions on Engineering Management.

[11]  C. Prahalad,et al.  The Core Competence of the Corporation , 1990 .

[12]  Ofer Meilich,et al.  Bivariate Models of Fit in Contingency Theory , 2006 .

[13]  R. Schroeder,et al.  Relationships between implementation of TQM, JIT, and TPM and manufacturing performance , 2001 .

[14]  David McHugh,et al.  Organisations and environments , 1995 .

[15]  Barbara B. Flynn,et al.  Relationship Between JIT and TQM: Practices and Performance , 1995 .

[16]  N. Venkatraman,et al.  Environment--strategy coalignment: an empirical test of its performance implications , 2011 .

[17]  Kate Blackmon,et al.  Manufacturing strategy: Building capability for dynamic markets , 2001 .

[18]  K. McKone,et al.  A plant’s technology emphasis and approach , 2002 .

[19]  Charles W. Hofer,et al.  Strategy formulation : analytical concepts , 1978 .

[20]  B. McKelvey Organizational Systematics-Taxonomy, Evolution, Classification , 1982 .

[21]  A. V. D. Ven,et al.  The Concept of Fit in Contingency Theory. , 1984 .

[22]  David Ford,et al.  Develop your Technology Strategy , 1988 .

[23]  K. Demeter Manufacturing strategy and competitiveness , 2003 .

[24]  S. Sethi,et al.  Relating strategy and structure to flexible automation: A test of fit and performance implications , 1993 .

[25]  L. Vogel,et al.  Strategy and Structure , 1986 .

[26]  M. Hannan,et al.  The Population Ecology of Organizations , 1977, American Journal of Sociology.

[27]  A. V. D. Ven,et al.  Alternative forms of fit in contingency theory. , 1985 .

[28]  F. Damanpour Organizational Innovation: A Meta-Analysis Of Effects Of Determinants and Moderators , 1991 .

[29]  M. Porter Competitive Advantage: Creating and Sustaining Superior Performance , 1985 .

[30]  Yoshiki Matsui,et al.  Contribution of manufacturing departments to technology development: An empirical analysis for machinery, electrical and electronics, and automobile plants in Japan , 2002 .

[31]  L. Cronbach Coefficient alpha and the internal structure of tests , 1951 .

[32]  Franklin A. Graybill,et al.  An Introduction to Linear Statistical Models. Vol. 1 , 1961 .

[33]  Paul Milgrom,et al.  Complementarities and fit strategy, structure, and organizational change in manufacturing , 1995 .

[34]  Michiya Morita,et al.  The linkage among management systems, practices and behaviour in successful manufacturing strategy , 1997 .

[35]  Carl R. Anderson,et al.  An exploratory study of the manufacturing strategy process in practice , 1990 .

[36]  S. Robbins Organization theory: Structure, design, and applications , 1987 .

[37]  Jan Olhager Manufacturing flexibility and profitability , 1993 .

[38]  M. Aiken,et al.  Organizational interdependence and intra-organizational structure. , 1968 .

[39]  Luk N. Van Wassenhove,et al.  Trade-offs? What Trade-offs? Competence and Competitiveness in Manufacturing Strategy , 1993 .

[40]  J. Hair Multivariate data analysis , 1972 .

[41]  S. Snell,et al.  THE STRATEGIC USE OF INTEGRATED MANUFACTURING: AN EMPIRICAL EXAMINATION , 1996 .

[42]  J. Hair Multivariate data analysis : a global perspective , 2010 .

[43]  S. Zahra,et al.  Business strategy, technology policy and firm performance , 1993 .

[44]  François Bergeron,et al.  An information technology trilogy: business strategy, technological deployment and organizational performance , 2001, J. Strateg. Inf. Syst..

[45]  D. Rasch Graybill, Franklin A.: An introduction to linear statistical models. Volume I. McGraw Hill, New York‐Toronto‐London 1961; IX + 463 S., 97 s. , 1961 .

[46]  R. Schroeder,et al.  The crucial interrelationship between manufacturing strategy and organizational culture , 1995 .

[47]  Narayan S. Umanath The concept of contingency beyond "It depends": illustrations from IS research stream , 2003, Inf. Manag..

[48]  R. Schroeder,et al.  Manufacturing practices, strategic fit and performance: A routine‐based view , 2004 .

[49]  Robert A. Simons Accounting control systems and business strategy: An empirical analysis , 1987 .

[50]  Frank G. H. Hartmann,et al.  Testing contingency hypotheses in budgetary research: an evaluation of the use of moderated regression analysis , 1999 .

[51]  P. L. Primrose Evaluating the introduction of JIT , 1992 .

[52]  Tsuyoshi Numagami,et al.  Dynamic interaction between strategy and technology , 1992 .

[53]  K. K. Kim,et al.  Task‐Structure Relationship of Information Systems Development Subunit: A Congruence Perspective* , 1992 .

[54]  William D. Berry Nonrecursive Causal Models , 1984 .

[55]  Peter T. Ward,et al.  Research in the process and content of manufacturing strategy , 1990 .

[56]  Tom R. Burns,et al.  The Management of Innovation. , 1963 .

[57]  Roger G. Schroeder,et al.  High performance manufacturing : global perspectives , 2001 .