Product and employee development in advanced manufacturing: Implementation and impact

Abstract

As competitive intensity increases and the need for rapid, responsive and efficient production rises, manufacturers need to develop effective strategies that lever all a firm's resources into a competitive weapon. One challenge managers face in today's dynamic global economy is to choose appropriate manufacturing practices and then to integrate them into a cohesive value-added strategy that will yield enhanced competitive performance. The sheer number and range of manufacturing 'strategies' that have emerged over the past 20 years exacerbate the challenge. The goal of this study is therefore to look at four highly publicized manufacturing strategies and then examine their interrelationships and impact on firm performance: (1) integrated product development, (2) employee development, (3) just-in-time manufacturing and (4) manufacturing automation. The responses of 158 managers from randomly selected US manufacturing firms were used to develop a covariance matrix to facilitate the use of a structural equations model via LISREL. The analysis indicates that employee and product development strategies are important antecedents of just-in-time and automation strategies. All four advanced manufacturing practices have significant, positive impacts on organizational competitiveness.