IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v45y1999i6p824-842.html
   My bibliography  Save this article

Evolutionary Patterns of Flexible Automation and Performance: A Longitudinal Study

Author

Listed:
  • Kenneth K. Boyer

    (Department of Management, Kellstadt Graduate School of Business, DePaul University, 1 E. Jackson Boulevard, Chicago, Illinois 60604-2287)

Abstract

This study presents a longitudinal analysis of patterns of investment in advanced manufacturing technologies (AMT) and financial performance. Investments in AMT from 112 manufacturing plants in the metal-working industries are examined. Data were collected via a mail survey administered to 202 plants in 1994, and readministered to 112 of the same plants in 1996. This study seeks to fill a void in the area of technology management, which is comprised primarily of cross-sectional studies that do not address the dynamic nature of investments in technology. Four major conclusions are drawn from the data. First, several individual technologies have higher investments in 1996 than in 1994. In particular, electronic mail has the largest increase in investment, a finding that suggests that manufacturing firms are finding ways to take advantage of the exploding potential of electronic communication. Our second conclusion is that plants invest in technology in an incremental fashion over time rather than using an all-or-nothing approach. Plants with low investments follow one of three technology strategies as their investments in AMTs evolve: (1) continued low investment, (2) investment primarily in design-based technologies, or (3) equalized investment in design, manufacturing, and administrative AMTs. Third, analysis of the degree of manufacturing involvement in developing business strategy indicates that plants that have a more proactive role for manufacturing invest greater resources in AMTs. Finally, while AMT investment was not positively associated with performance in a cross-sectional analysis, longitudinal analysis of data collected two years later does reveal a relationship. In short, the analysis supports the proposition that there is a lag between initial investment and resulting performance improvements.

Suggested Citation

  • Kenneth K. Boyer, 1999. "Evolutionary Patterns of Flexible Automation and Performance: A Longitudinal Study," Management Science, INFORMS, vol. 45(6), pages 824-842, June.
    • Handle: RePEc:inm:ormnsc:v:45:y:1999:i:6:p:824-842
    DOI: 10.1287/mnsc.45.6.824
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.45.6.824
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.45.6.824?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Paul M. Swamidass & William T. Newell, 1987. "Manufacturing Strategy, Environmental Uncertainty and Performance: A Path Analytic Model," Management Science, INFORMS, vol. 33(4), pages 509-524, April.
    2. John E. Ettlie & Joan D. Penner-Hahn, 1994. "Flexibility Ratios and Manufacturing Strategy," Management Science, INFORMS, vol. 40(11), pages 1444-1454, November.
    3. Roth, Aleda V. & Miller, Jeffrey G., 1992. "Success factors in manufacturing," Business Horizons, Elsevier, vol. 35(4), pages 73-81.
    4. Edwin Mansfield, 1993. "The Diffusion of Flexible Manufacturing Systems in Japan, Europe and the United States," Management Science, INFORMS, vol. 39(2), pages 149-159, February.
    5. Leong, G. K. & Snyder, D. L. & Ward, P. T., 1990. "Research in the process and content of manufacturing strategy," Omega, Elsevier, vol. 18(2), pages 109-122.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. John W. Gardner & Kenneth K. Boyer & Peter T. Ward, 2017. "Achieving Time-Sensitive Organizational Performance Through Mindful Use of Technologies and Routines," Organization Science, INFORMS, vol. 28(6), pages 1061-1079, December.
    2. Gideon D. Markman & William B. Gartner, 2002. "Is Extraordinary Growth Profitable? A Study of Inc. 500 High–Growth Companies," Entrepreneurship Theory and Practice, , vol. 27(1), pages 65-75, January.
    3. Spanos, Yiannis E. & Voudouris, Irini, 2009. "Antecedents and trajectories of AMT adoption: The case of Greek manufacturing SMEs," Research Policy, Elsevier, vol. 38(1), pages 144-155, February.
    4. Dangayach, G.S. & Deshmukh, S.G., 2006. "An exploratory study of manufacturing strategy practices of machinery manufacturing companies in India," Omega, Elsevier, vol. 34(3), pages 254-273, June.
    5. Cheng, Yang & Matthiesen, Rikke & Farooq, Sami & Johansen, John & Hu, Haibo & Ma, Lei, 2018. "The evolution of investment patterns on advanced manufacturing technology (AMT) in manufacturing operations: A longitudinal analysis," International Journal of Production Economics, Elsevier, vol. 203(C), pages 239-253.
    6. Boyer, Kenneth K., 2001. "E-operations: a guide to streamlining with the internet," Business Horizons, Elsevier, vol. 44(1), pages 47-54.
    7. Stornelli, Aldo & Ozcan, Sercan & Simms, Christopher, 2021. "Advanced manufacturing technology adoption and innovation: A systematic literature review on barriers, enablers, and innovation types," Research Policy, Elsevier, vol. 50(6).
    8. Ana Maria Peredo & Robert B. Anderson & Craig S. Galbraith & Benson Honig & Leo Paul Dana, 2004. "Towards a theory of indigenous entrepreneurship," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 1(1/2), pages 1-20.
    9. Shashi, & Centobelli, Piera & Cerchione, Roberto & Singh, Rajwinder, 2019. "The impact of leanness and innovativeness on environmental and financial performance: Insights from Indian SMEs," International Journal of Production Economics, Elsevier, vol. 212(C), pages 111-124.
    10. Bourke, Jane & Roper, Stephen, 2016. "AMT adoption and innovation: An investigation of dynamic and complementary effects," Technovation, Elsevier, vol. 55, pages 42-55.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Avella, Lucia & Fernandez, Esteban & Vazquez, Camilo J., 2001. "Analysis of manufacturing strategy as an explanatory factor of competitiveness in the large Spanish industrial firm," International Journal of Production Economics, Elsevier, vol. 72(2), pages 139-157, July.
    2. Dangayach, G.S. & Deshmukh, S.G., 2006. "An exploratory study of manufacturing strategy practices of machinery manufacturing companies in India," Omega, Elsevier, vol. 34(3), pages 254-273, June.
    3. Avella, Lucía & Fernández, Esteban & Vázquez, Camilo J., 1999. "The large Spanish industrial company: strategies of the most competitive factories," Omega, Elsevier, vol. 27(5), pages 497-514, October.
    4. Demeter, Krisztina, 2003. "Manufacturing strategy and competitiveness," International Journal of Production Economics, Elsevier, vol. 81(1), pages 2015-2213, January.
    5. Hallgren, Mattias & Olhager, Jan, 2006. "Quantification in manufacturing strategy: A methodology and illustration," International Journal of Production Economics, Elsevier, vol. 104(1), pages 113-124, November.
    6. Aleda V. Roth, 2007. "Applications of Empirical Science in Manufacturing and Service Operations," Manufacturing & Service Operations Management, INFORMS, vol. 9(4), pages 353-367.
    7. Pacheco, Diego Augusto de Jesus & Antunes Junior, José Antonio Valle & de Matos, Celso Augusto, 2021. "The constraints of theory: What is the impact of the Theory of Constraints on Operations Strategy?," International Journal of Production Economics, Elsevier, vol. 235(C).
    8. 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.
    9. Miroslava Rakovska, 2016. "Procurement and Operations Management in the Logistics Systems of Manufacturing Companies in Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 141-181.
    10. Beach, R. & Muhlemann, A. P. & Price, D. H. R. & Paterson, A. & Sharp, J. A., 2000. "A review of manufacturing flexibility," European Journal of Operational Research, Elsevier, vol. 122(1), pages 41-57, April.
    11. Lau Antonio, K.W. & Yam, Richard C.M. & Tang, Esther, 2007. "The impacts of product modularity on competitive capabilities and performance: An empirical study," International Journal of Production Economics, Elsevier, vol. 105(1), pages 1-20, January.
    12. Boyer, Kenneth K. & Leong, G. Keong, 1996. "Manufacturing flexibility at the plant level," Omega, Elsevier, vol. 24(5), pages 495-510, October.
    13. Su, Hung-Chung & Chen, Yi-Su, 2013. "Unpacking the relationships between learning mechanisms, culture types, and plant performance," International Journal of Production Economics, Elsevier, vol. 146(2), pages 728-737.
    14. Badri, Masood A. & Davis, Donald & Davis, Donna, 2000. "Operations strategy, environmental uncertainty and performance: a path analytic model of industries in developing countries," Omega, Elsevier, vol. 28(2), pages 155-173, April.
    15. Shakun Preet Kaur & Jatinder Kumar & Rakesh Kumar, 2017. "The Relationship Between Flexibility of Manufacturing System Components, Competitiveness of SMEs and Business Performance: A Study of Manufacturing SMEs in Northern India," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 18(2), pages 123-137, June.
    16. Lii, Peirchyi & Kuo, Fang-I, 2016. "Innovation-oriented supply chain integration for combined competitiveness and firm performance," International Journal of Production Economics, Elsevier, vol. 174(C), pages 142-155.
    17. González-Benito, Javier & Reis da Rocha, Duilio & Queiruga, Dolores, 2010. "The environment as a determining factor of purchasing and supply strategy: An empirical analysis of Brazilian firms," International Journal of Production Economics, Elsevier, vol. 124(1), pages 1-10, March.
    18. Amoako-Gyampah, Kwasi & Acquaah, Moses, 2008. "Manufacturing strategy, competitive strategy and firm performance: An empirical study in a developing economy environment," International Journal of Production Economics, Elsevier, vol. 111(2), pages 575-592, February.
    19. John A. Parnell, 2017. "Cronyism from the Perspective of the Firm: A Cross-National Assessment of Nonmarket Strategy," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 32(Fall 2017), pages 47-74.
    20. Demeter, Krisztina & Szász, Levente, 2013. "Towards solution based thinking: characteristics of servitization at Hungarian manufacturing companies," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 18(3), pages 309-335.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:45:y:1999:i:6:p:824-842. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.