An empirical investigation of the impact of advanced manufacturing technology on business performance.
Item
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Title
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An empirical investigation of the impact of advanced manufacturing technology on business performance.
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Identifier
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AAI9732890
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identifier
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9732890
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Creator
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Agarwal, Devraj.
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Contributor
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Adviser: Michael N. Chanin
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Date
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1997
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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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Many have argued that adoption of advanced manufacturing technology (AMT) leads to better business performance. Firms using AMT, however, report mixed results ranging from increased quality and flexibility to absolute failure. What makes a firm more able to achieve the strategic benefits of AMT is still elusive to us.;The basic objective of this study is to examine why some firms are better able to use AMT to improve their competitive strength. The central premise of our research is that the influence of AMT on a firm's business performance depends on the extent to which it is supported by the appropriate organizational structure, business strategy, manufacturing proactiveness, and industrial environmental conditions.;The hypothesized relationships were empirically tested by collecting data from 145 U.S. manufacturing firms belonging to six different industrial groups, that is, SIC groups 33 to 38. The relationships were examined using moderated regression analysis, cluster analysis, and multivariate analysis of variance (MANOVA).;Regression results show that firms with integrated use of manufacturing technologies achieve higher performance. Influence of technology on firm performance, however, do not depend upon the type of organizational structure. Both organic and mechanistic organizational structures are equally effective with AMT. Technology interacts positively with business strategy. Both cost leadership and differentiation strategies are positively related to a firm's technological strength. Firms make more effective use of manufacturing technologies if manufacturing managers proactively participate in the strategic planning process. The effects of proactive manufacturing participation, however, do not differ by the level or type of uncertainty in the external environment of the firm.;Relationships were also examined with a holistic perspective using the configurational approach. Cluster analysis was used to form clusters or configurations of firms. MANOVA was then used to determine if the clusters significantly differed. Results confirm the concept of equifinality, that is, firms with different strategic profiles can be equally effective. Firms with more intensive and integrated use of technology tend to use complex innovation strategy. Cost leadership strategy is more likely to be pursued by firms with low technological strength, which perceive environment as highly hostile.
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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.
