Patterns of Advanced Manufacturing Technology Utilization and Manufacturing Capabilities

Abstract

The objectives of this research are first to empirically replicate Advanced Manufacturing Technology (AMT) utilization taxonomies identified in foregoing research, second to investigate the relationship between patterns of AMT utilization and manufacturing capabilities attainment, and third to explore differences in context, and performance across AMT groups. Theories of performance frontiers and capability progression provide the basis for our hypotheses. Data were collected from 224 U.S. manufacturing plants in industries considered to have potential utilizations of AMTs. A cluster analysis of the data yields a solution that closely resembles a previous AMT utilization taxonomy, including four groups labeled, respectively, as Traditionalists, Generalists, High Investors, and Designers. Significant manufacturing capability differences across these four groups indicate that plants that utilize a broader scope of AMTs enjoy a greater breadth of manufacturing capabilities. The implied capability attainment pattern is consistent with cumulative capability theory. However, the results suggest that cost capability is not included in the capability mix when broad‐based AMT utilization is the enabler of capability gains. A post hoc exploration of the AMT groups indicates significant differences in performance across the groups. Collectively, the results extend prior research by providing added insights into the possible rationale and impact of AMT utilization patterns.