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How advanced manufacturing technologies make a difference in Turkey's manufacturing small and medium-sized enterprises

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  • Arzu Karaman Akgul
  • Feride Doganer Gonel

Abstract

This research analyses the relationship between the use of advanced manufacturing technologies (AMTs) and the firm performance of small and medium-sized enterprises (SMEs). The purpose of this study is to reveal Turkey's manufacturing sector's response to the overwhelming competition and to understand the manufacturing parameters that affect the performance of manufacturing SMEs. Drawing on a structured questionnaire, data for the study was collected from a sample of 365 firms that are registered in the Istanbul Chamber of Industry (ISO) directory. Our findings indicate that AMTs are significantly effective on the performance of Turkish SMEs. However, these effects are not uniform; these technologies affect return on equity (ROE) more than other firm performance parameters such as profit, revenue or return on investment (ROI). Generalisation of findings to other emerging countries and other sectors that may benefit from AMTs is precluded by the study's narrow focus on Turkish manufacturing SMEs. Data is also collected by using face-to-face technique with only one respondent from each SME, which in turn might cause a response bias. The main contribution of this study stems from its examination of the links between AMTs and business performance of SMEs within the context of a key emerging country, Turkey.

Suggested Citation

  • Arzu Karaman Akgul & Feride Doganer Gonel, 2020. "How advanced manufacturing technologies make a difference in Turkey's manufacturing small and medium-sized enterprises," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 23(2), pages 150-165.
    • Handle: RePEc:ids:gbusec:v:23:y:2020:i:2:p:150-165
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