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Manufacturing strategy and competitive performance – An ACE analysis

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  • Ang, James S.K.
  • Shimada, Tomoaki
  • Quek, Ser-Aik
  • Lim, Eugene

Abstract

In this study, we investigate the relationships between competitive dimensions of manufacturing strategy and competitive performance in two clusters. One consists of plants in countries known for their manufacturing excellence (i.e., "JUG" referring to Japan, the United States and Germany); and the other of plants in emerging manufacturing countries (i.e., "BC" referring to Brazil and China). Data from the third round of the High Performance Manufacturing (HPM) project, which is a worldwide plant-level questionnaire survey project, were used in this study. The Alternating Conditional Expectations (ACE) algorithm, which is a nonlinear statistical tool, was applied to capture nonlinear relationships among the factors. Specifically, the possession of proprietary resources and the use of manufacturing as a competitive resource exhibit negative relationships with competitive performance for BC, but positive relationships for JUG. The achievement of functional integration varies negatively with competitive performance for JUG, but positively for BC. These relationships plateau over the mid-ranges. A proactive IT posture demonstrates the most statistically significant positive relationship with competitive performance for both JUG and BC. Based on our findings in an exploratory approach, managerial implications are also discussed.

Suggested Citation

  • Ang, James S.K. & Shimada, Tomoaki & Quek, Ser-Aik & Lim, Eugene, 2015. "Manufacturing strategy and competitive performance – An ACE analysis," International Journal of Production Economics, Elsevier, vol. 169(C), pages 240-252.
    • Handle: RePEc:eee:proeco:v:169:y:2015:i:c:p:240-252
    DOI: 10.1016/j.ijpe.2015.03.031
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    Cited by:

    1. 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.
    2. Okoshi, Cleina Yayoe & Pinheiro de Lima, Edson & Gouvea Da Costa, Sergio Eduardo, 2019. "Performance cause and effect studies: Analyzing high performance manufacturing companies," International Journal of Production Economics, Elsevier, vol. 210(C), pages 27-41.
    3. Sardana, Deepak & Terziovski, Mile & Gupta, Narain, 2016. "The impact of strategic alignment and responsiveness to market on manufacturing firm's performance," International Journal of Production Economics, Elsevier, vol. 177(C), pages 131-138.
    4. Huo, Baofeng & Gu, Minhao & Jiang, Bin, 2018. "China-related POM research: Literature review and suggestions for future research," International Journal of Production Economics, Elsevier, vol. 203(C), pages 134-153.

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