Relative importance of contingency variables for advanced manufacturing technology

The academic literature on manufacturing technology was reviewed to identify key contingency variables that can moderate the influence of advanced manufacturing technologies on manufacturing performance. Using this literature as a basis, this research proposes an ordering of relative importance of individual contingency variables among a set of contingency variables that influence the advanced manufacturing technologies–manufacturing performance relationship. Plant level data from a large multi-industry sample of firms are analysed, using regression and Chow tests, to confirm the hypothesized ordering among the contingency variables. The findings indicate that lean manufacturing and work organization practices are the primary contingency variables that affect the advanced manufacturing technologies–manufacturing performance relationship. The implications of the results are discussed in the light of past findings and their impact on practice.

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