The application situation and determinants of postponement

Abstract

PurposeThe concept of postponement has been developed over many years. Past empirical research has been conducted almost entirely in Western countries. This paper aims to investigate the current status of postponement applications in Greater China (including Mainland China, Hong Kong, and Taiwan) to ascertain the effects of some determinants (i.e. environmental uncertainty, production techniques, and information system (IS) maturity) on postponement application.Design/methodology/approachA field survey of big manufacturers of electronic/information technology, clothing, and electric appliances is conducted. A total of 106 usable responses are received from 411 surveys yielding a satisfactory response rate of 25.8 percent.FindingsThe result indicates that the number of applications of postponement in Greater China is growing and the incidence of postponement applications is higher than in the Western countries. Environmental uncertainty, production techniques, and ISs maturity have have positive effects on applications of postponement techniques. Some specific postponement strategies for the three industries studied are noted.Originality/valueFrom an exploratory perspective, the findings present in this paper may be useful in the sense that they give a broad and general picture of the current situation of the use of postponement in certain industries in Greater China.