An empirical investigation of the impact of flexible automation on business strategy and organizational structure.
Item
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Title
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An empirical investigation of the impact of flexible automation on business strategy and organizational structure.
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Identifier
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AAI9207109
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identifier
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9207109
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Creator
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Parthasarthy, Raghavan.
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Contributor
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Adviser: S. Prakash Sethi
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Date
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1991
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Language
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English
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Publisher
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City University of New York.
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Subject
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Business Administration, Management
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Abstract
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Various studies claim a causal role for flexible automation in business strategy management. Strategy literature, however, lacks a conceptual basis for analysis of this issue. A mechanistic view of automation has characterized strategy frameworks.;This study conceptually explains and tests the causal role of technology in strategy management. It views a firm's technology as adaptive to the industry's technological evolution to stay technically competitive. Such adaptations alter the firm's design/processing competences and create a misfit amongst manufacturing strengths, business strategy, and structure. Regaining "fit" requires complementary adjustments in strategy and structure. When adjustments reflect technology's changing competences, there should be an internal "fit" and higher performance. The thesis of this study is: the more a firm's strategy and structure match its technological competences, the higher will be performance.;To test this thesis, this study analyzes questionnaire data of 82 flexible automation firms belonging to SIC groups 34-38 and operating in the U.S. Moderated regression analysis is used to test "fit" relationships. Results indicate technology positively interacts with quality, variety, innovation strategies and team structures that are complementary to flexible automation strengths. It negatively interacts with low cost strategies and standardized structures that are in conflict with flexible automation strengths. At the manufacturing level, technology is positively associated with worker skill diversity and team approaches that are congruent with flexible automation strengths. A sub-group analysis of the sample based upon high and low performers adds significant support to these findings.;For future research, the study suggests larger samples, a more refined measure for technology, and a longitudinal analysis. From a theoretical perspective, this study calls for a change in the current strategy formulation paradigm: from a market-based approach to an internal technical competency based approach that also considers external conditions. Towards that end, this study suggests redefining technology from an organic perspective: a system of evolutionary skills and competences that creates and executes ideas and products.
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Type
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dissertation
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Source
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PQT Legacy CUNY.xlsx
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degree
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Ph.D.
