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The effects of changes in competition, technology and strategy on organizational performance in small and medium manufacturing companies

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  • Tuan Zainun Tuanmat
  • Malcolm Smith

Abstract

Purpose - This study aims to examine how the relationship among competitive environment, manufacturing technology and organisational strategy affect organisational performance. Design/methodology/approach - Using a contingency approach, this study investigates the changes in competitive environment, manufacturing technology and organisational strategy in small and medium Malaysian manufacturing companies. The data is collected using a mailed questionnaire survey of manufacturing companies in the Klang Valley. Findings - Results of the study show that the majority of responding companies have recognised changes in their competitive business environment and advanced manufacturing technology, which have impacted on organisational strategic behaviour. Structural equation modelling shows positive relationships among competitive environment, manufacturing technology and organisational strategy, with a positive impact on performance. Research limitations/implications - These outcomes provide useful insights into our knowledge of how organisational change has taken place in small and medium companies. Practical implications - The study provides useful guidelines to small and medium sized companies facing changes to their business environment. Originality/value - The study makes an incremental contribution to the existing organisational change literature for SMEs in developing countries.

Suggested Citation

  • Tuan Zainun Tuanmat & Malcolm Smith, 2011. "The effects of changes in competition, technology and strategy on organizational performance in small and medium manufacturing companies," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 19(3), pages 208-220, September.
    • Handle: RePEc:eme:arapps:v:19:y:2011:i:3:p:208-220
    DOI: 10.1108/13217341111185137
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    References listed on IDEAS

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    Cited by:

    1. Banu Dincer & Caner Dincer, 2016. "Literature Review on the Use of Technology and Information Systems in SMEs," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(12), pages 678-684, December.
    2. Lopes de Sousa Jabbour, Ana Beatriz & Ndubisi, Nelson Oly & Roman Pais Seles, Bruno Michel, 2020. "Sustainable development in Asian manufacturing SMEs: Progress and directions," International Journal of Production Economics, Elsevier, vol. 225(C).
    3. Syed Shah Alam & Abul Bashar Bhuiyan & Fauzi Mohd Jani & Che Aniza Che Wel, 2016. "The impact of innovation on growth and performance of processed food SMEs in Malaysia," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 20(1/2), pages 61-79.
    4. J.S. Keshminder & Md Aslam Mia & Mohammad Nourani & Miao Zhang, 2022. "Gig employment in the Malaysian manufacturing industry: a cross‐sectional analysis," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 36(1), pages 48-66, May.

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