Determining organizational structure choices in advanced manufacturing technology management

Abstract

The implementation of advanced manufacturing technology (AMT) has been viewed as a powerful competitive weapon. Manufacturing plants that have adopted these technologies have the potential, inter alia, to gain earlier entrance to markets, to respond more quickly to changing customer needs, and to improve the quality of their products. In this study, using an advanced manufacturing technology intensity index, we first examine the variations in company performance as a function of the simultaneous effect of the dimensions of manufacturing technology intensity and structure. Secondly, using the moderator hypothesis, we propose that the more organizational structure complemented AMT's competencies, the higher the performance impact of AMT. Data from this study indicate that decentralization, described as complementary to AMT strengths, interacts positively with AMT, whereas formalization and mechanistic structure interact negatively with AMT.