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Determining organizational structure choices in advanced manufacturing technology management

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  • Gupta, A.
  • Chen, I. J.
  • Chiang, D.
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    Abstract

    The implementation of advanced manufacturing technology (AMT) has been viewed as a powerful competitive weapon. Manufacturing plants that have adopted these technologies have the potential, inter alia, to gain earlier entrance to markets, to respond more quickly to changing customer needs, and to improve the quality of their products. In this study, using an advanced manufacturing technology intensity index, we first examine the variations in company performance as a function of the simultaneous effect of the dimensions of manufacturing technology intensity and structure. Secondly, using the moderator hypothesis, we propose that the more organizational structure complemented AMT's competencies, the higher the performance impact of AMT. Data from this study indicate that decentralization, described as complementary to AMT strengths, interacts positively with AMT, whereas formalization and mechanistic structure interact negatively with AMT.

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    Bibliographic Info

    Article provided by Elsevier in its journal Omega.

    Volume (Year): 25 (1997)
    Issue (Month): 5 (October)
    Pages: 511-521

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    Handle: RePEc:eee:jomega:v:25:y:1997:i:5:p:511-521

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    Keywords: advanced manufacturing technology organizational structure technology management;

    References

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    1. David B. Jemison, 1987. "Risk and the Relationship Among Strategy, Organizational Processes, and Performance," Management Science, INFORMS, vol. 33(9), pages 1087-1101, September.
    2. Michael J. Dowling & Jeffrey E. McGee, 1994. "Business and Technology Strategies and New Venture Performance: A Study of the Telecommunications Equipment Industry," Management Science, INFORMS, vol. 40(12), pages 1663-1677, December.
    3. Jacobson, Robert, 1987. "The Validity of ROI as a Measure of Business Performance," American Economic Review, American Economic Association, vol. 77(3), pages 470-78, June.
    4. Paul M. Swamidass & William T. Newell, 1987. "Manufacturing Strategy, Environmental Uncertainty and Performance: A Path Analytic Model," Management Science, INFORMS, vol. 33(4), pages 509-524, April.
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