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Effect of investments in manufacturing practices on process efficiency and organizational performance

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  • Lee, DonHee
  • Rho, Boo-Ho
  • Yoon, Seong No

Abstract

The purpose of this study is to examine the role of two factors: process efficiency as a mediator of investments in manufacturing practices and organizational performance and nation׳s economic status as a moderator between investment in manufacturing practices and process efficiency. A research model is proposed that describes the influence of investments in manufacturing practices on organizational performance through process efficiency. This study also calculates differences between investments in manufacturing practices and process efficiency on the basis of the economic status of the country. Using data from the fourth round of the Global Manufacturing Research Group (GMRG) 4.0 survey, the model and hypotheses were tested using structural equation modeling techniques leveraged upon data from 1074 firms in 22 countries. Results suggest that investments in manufacturing practices increase process efficiency, which in turn, improve organizational performance, although this relationship was moderated by the economic status of the country.

Suggested Citation

  • Lee, DonHee & Rho, Boo-Ho & Yoon, Seong No, 2015. "Effect of investments in manufacturing practices on process efficiency and organizational performance," International Journal of Production Economics, Elsevier, vol. 162(C), pages 45-54.
    • Handle: RePEc:eee:proeco:v:162:y:2015:i:c:p:45-54
    DOI: 10.1016/j.ijpe.2015.01.001
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    References listed on IDEAS

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    Cited by:

    1. Nair, Anand & Singh, Prakash J. & Bhattacharya, Ananya & Pal, Sukrit, 2021. "Withstanding the economic recession: Examining the efficacy of manufacturing strategy alignment and process integration," International Journal of Production Economics, Elsevier, vol. 231(C).
    2. Vineet Jain & Puneeta Ajmera, 2019. "Modelling of the factors affecting lean implementation in healthcare using structural equation modelling," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 10(4), pages 563-575, August.
    3. Jain, Vineet & Raj, Tilak, 2016. "Modeling and analysis of FMS performance variables by ISM, SEM and GTMA approach," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 84-96.
    4. Arana-Solares, Iván Andrés & Ortega-Jiménez, César H. & Alfalla-Luque, Rafaela & Pérez-Díez de los Ríos, José Luis, 2019. "Contextual factors intervening in the manufacturing strategy and technology management-performance relationship," International Journal of Production Economics, Elsevier, vol. 207(C), pages 81-95.

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