DO WORKFORCE AND ORGANIZATIONAL PRACTICES EXPLAIN THE MANUFACTURING TECHNOLOGY IMPLEMENTATION ADVANTAGE OF SMALL DEFENSE CONTRACTORS OVER NON‐DEFENSE ESTABLISHMENTS?

Abstract

This paper explores whether defense contractors' manufacturing technology advantages over purely commercial firms might be associated with differences in their workforce and organizational practices. It uses unique original data collected specifically to test workforce and organizational complementarities in implementation of advanced manufacturing technology in small manufacturers. Findings are that defense contractors: (1) have higher and deeper rates of advanced manufacturing technology use; (2) have greater perceived success in achieving manufacturing goals; (3) are more likely practitioners across a diverse spectrum of advanced workforce and organizational practices. Then, (4) econometrically, the defense contractors' higher reported levels of achievement in implementing advanced manufacturing technologies are positively associated with those organizational and workforce practice differences.