Product variety, customisation and business process performance: A mixed-methods approach to understanding their relationships

Abstract

This research presents findings from a sequential, mixed qualitative and quantitative method comprising five case studies and a survey of 162 different manufacturing sites where we examined how increases in product variety influence the performance of a wide range of business processes within and across the value chain of engineering, manufacturing, procurement, logistics and sales. We also identified the advantages associated with an increase in product variety and investigated the relationships between business process performance and degree of customisation. Drawing on value chain and resource-based logic, a product variety increase was found to have a differential impact on business processes and was partly contingent on the levels of customisation offered. The results provide both a better understanding of the implications and relative costs associated with product variety increases on key business processes and activities and highlight key areas of business process capability development in order to mitigate the effects of variety increases. The study also provides an example for researchers on the process and advantages of using mixed methods. The results are valuable for manufacturers considering extending their product range in order to provide more choice for customers.