Abstract
This paper reports the influence of alignment between manufacturing strategy and business strategy on business performance and the contribution of manufacturing performance to business performance. The research is based on the empirical data from the International Manufacturing Strategy Survey (IMSS) conducted in more than 20 countries. The results include: (1) the alignment of manufacturing strategy and business strategy positively influences the improvement of business performances; (2) the manufacturing–business alignment also positively influences the manufacturing contribution to the improvement of business performance. The conclusion is that only when the manufacturing strategy and business strategy are in alignment, can manufacturing contribute to the improvement of business performance and business objectives can be achieved. The main implication is that the production/manufacturing function should be involved in the strategic decision-making.
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