Abstract
India is one of the fastest emerging global manufacturing hubs with a large number of firms shifting their manufacturing base to the country due to cheap labour and good suppliers base. Over the years, India has the largest number of companies, besides Japan, that have been recognized for excellence in quality. As many as 21 companies have received the Deming Excellence awards; 153 companies have achieved Total Productive Maintenance (TPM) Excellence Award for their total productivity management practices by the Japan Institute of Plant Maintenance (JIPM) committee (Source: IBEF, 2010).Here in this research article author conducted an empirical survey among Indian manufacturing firms to understand how manufacturing competency effects the firm performance. It has been observed that manufacturing competency has a negative impact on firm performance which is contradicting with the so far empirical studies conducted in European, Japanese and American countries. Here in this study authors have provided an in depth analysis to explain this negative impact and how this can lead to positive impact.
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