Analysis of manufacturing strategy as an explanatory factor of competitiveness in the large Spanish industrial firm

https://doi.org/10.1016/S0925-5273(00)00099-2Get rights and content

Abstract

This work focuses on analysing the growing importance of manufacturing strategies for the competitiveness of firms. It is considered that the emphasis on certain manufacturing competitive priorities (or capabilities) and decisions or practices (on the key decision areas) and their internal coherence can be the base for achieving sustainable or lasting advantages over competitors, thus originating superior business performance. The aim of this research work is to analyse whether or not there exists a correlation between the manufacturing strategy and the competitive success or business performance of a sample of large Spanish industrial firms. The database used is mainly made up of the information from a mail survey, aimed at the industrial firms set up in Spain which in 1994 (study reference date) employed over 200 workers. The results obtained, with the proposed methodology, reveal that it is not possible to identify a direct relationship between the manufacturing strategy and business performance of the sample of firms analysed. In this sense, the chosen manufacturing strategy, that is to say, the emphasis on certain manufacturing competitive priorities and decision areas (or practices) and their coherence, does not enable us to distinguish between best and worst performers, and so does not allow us to explain the level of competitiveness of the sample of large Spanish industrial firms analysed in this work.

Section snippets

Introduction: Conceptualisation of the manufacturing strategy and analysis of its influence on firms’ competitiveness

The aim of this work is to test whether there exists any correlation between the manufacturing strategy and competitive success (measured by business performance) of a sample of large industrial firms set up in Spain. To this end, the work is structured in the following way: firstly, the concept of manufacturing strategy and its influence on firms’ competitiveness is analysed; secondly, in the light of the literature on the subject, the proposed objectives and hypotheses to be tested are

Objectives and hypotheses

In the extent that, following Skinner's seminal paper, works have proliferated on manufacturing strategy and its influence on firms’ competitiveness, clarity on this subject has been reduced and, in this sense, the review of the literature reveals the existence of different approaches or theoretical viewpoints and scarce empirical research in this field. Nevertheless, some works have explored and empirically test, in different ways, the influence of manufacturing strategy on firms’

Data collection

The database used to test these hypotheses is made up of information provided by a mail survey. This questionnaire was aimed at the industrial firms set up in Spain which in 1994 (study reference date) employed over 200 workers, according to the list drawn up by Duns&Bradstreet International Consultancy. Hence, the total size of the objective population is 1,104 firms.

Our overall research project was initiated in May 1995 with the design of the questionnaire, which includes 175 items organised

Statistical analyses and discussion of research results

The analyses made in order to test the hypotheses are presented. Firstly, we analyse the differences in the manufacturing strategies content of the firms in the sample, in terms of their business performance. Then, we test the possible existence of a relation between the coherence of the content of the planned manufacturing strategies and the obtaining of superior business performance.16

Conclusions and limitations

This work has tested the possible existence of a correlation between the manufacturing strategy content and the business performance of a sample of large industrial firms set up in Spain. These firms have been classified in terms of their business performance and it has been checked that there do not exist significant differences between the manufacturing strategies content of the high, medium and low performers. In this way, we reach the conclusion that there does not seem to exist any profile

Acknowledgements

The authors would like to express their gratitude to the anonymous Referees of the paper, whose valuable comments and suggestions have greatly contributed to its improvement, and to the Dirección General de Enseñanza Superior e Investigación Cientı́fica, del Ministerio de Educación y Cultura (Ministry of Education and Culture) in Spain, for financing the research project PB98-1524, which this work forms part of.

References (47)

  • P.T Ward et al.

    Manufacturing strategy in contextenvironment, competitive strategy and manufacturing strategy

    Journal of Operations Management

    (2000)
  • R.G Schroeder et al.

    The content of manufacturing strategyAn empirical study

    Journal of Operations Management

    (1986)
  • B.B Flynn et al.

    World class manufacturingan investigation of Hayes and Wheelwright's foundation

    Journal of Operations Management

    (1999)
  • W Skinner

    Manufacturing-missing link in corporate strategy

    Harvard Business Review

    (1969)
  • W Skinner

    Manufacturing in the Corporate Strategy

    (1978)
  • R.H Hayes et al.

    How should you organize manufacturing?

    Harvard Business Review

    (1978)
  • R.J. Mayer, J. Moore, Applying manufacturing strategy concepts to practice, Operations Management Review (fall) (1983)...
  • J.D. Romano, Operations strategy, in: K.J. Albert. (Ed.), Strategic Management, McGraw-Hill, New York,...
  • E.S Buffa

    Meeting The Competitive Challenge

    (1984)
  • R.H Hayes et al.

    Restoring Our Competitive Edge

    (1984)
  • C.H Fine et al.

    Manufacturing strategya methodology and an illustration

    Interfaces

    (1985)
  • R.H Hayes

    Strategic planning-forward in reverse?

    Harvard Business Review

    (1985)
  • R.H Hayes et al.

    Dynamic Manufacturing

    (1988)
  • Cited by (0)

    View full text