Premium
Manufacturing strategy, business strategy and firm performance in a mature industry
Author(s) -
Williams Fredrik P.,
D'Souza Derrick E.,
Rosenfeldt Martin E.,
Kassaee Massoud
Publication year - 1995
Publication title -
journal of operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.649
H-Index - 191
eISSN - 1873-1317
pISSN - 0272-6963
DOI - 10.1016/0272-6963(95)00006-e
Subject(s) - business , industrial organization , sample (material) , argument (complex analysis) , quality (philosophy) , manufacturing , quality assurance , product (mathematics) , process management , function (biology) , marketing , service (business) , biochemistry , chemistry , philosophy , geometry , mathematics , epistemology , chromatography , evolutionary biology , biology
This research investigates the relationship between manufacturing strategy, business strategy and firm performance in a mature industry. Past research is synthesized, and a parsimonious conceptual framework is developed. The framework is then tested on a sample of 85 firms in the broadwoven fabric industry (SIC 2211). The results show a significant relationship between the business strategy and the manufacturing strategy of the firm. They support the argument found in the literature that functional level strategies should support business level strategies. A significant relationship was also found between manufacturing strategy and performance of the firm. In particular, the manufacturing function's quality assurance process and its ability to deliver a quality product/service were found to correlate significantly with firm performance. Implications of the findings are discussed.