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Evolutionary Patterns of Flexible Automation and Performance: A Longitudinal Study

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  • Kenneth K. Boyer

    (Department of Management, Kellstadt Graduate School of Business, DePaul University, 1 E. Jackson Boulevard, Chicago, Illinois 60604-2287)

Abstract

This study presents a longitudinal analysis of patterns of investment in advanced manufacturing technologies (AMT) and financial performance. Investments in AMT from 112 manufacturing plants in the metal-working industries are examined. Data were collected via a mail survey administered to 202 plants in 1994, and readministered to 112 of the same plants in 1996. This study seeks to fill a void in the area of technology management, which is comprised primarily of cross-sectional studies that do not address the dynamic nature of investments in technology. Four major conclusions are drawn from the data. First, several individual technologies have higher investments in 1996 than in 1994. In particular, electronic mail has the largest increase in investment, a finding that suggests that manufacturing firms are finding ways to take advantage of the exploding potential of electronic communication. Our second conclusion is that plants invest in technology in an incremental fashion over time rather than using an all-or-nothing approach. Plants with low investments follow one of three technology strategies as their investments in AMTs evolve: (1) continued low investment, (2) investment primarily in design-based technologies, or (3) equalized investment in design, manufacturing, and administrative AMTs. Third, analysis of the degree of manufacturing involvement in developing business strategy indicates that plants that have a more proactive role for manufacturing invest greater resources in AMTs. Finally, while AMT investment was not positively associated with performance in a cross-sectional analysis, longitudinal analysis of data collected two years later does reveal a relationship. In short, the analysis supports the proposition that there is a lag between initial investment and resulting performance improvements.

Suggested Citation

  • Kenneth K. Boyer, 1999. "Evolutionary Patterns of Flexible Automation and Performance: A Longitudinal Study," Management Science, INFORMS, vol. 45(6), pages 824-842, June.
    • Handle: RePEc:inm:ormnsc:v:45:y:1999:i:6:p:824-842
    DOI: 10.1287/mnsc.45.6.824
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    References listed on IDEAS

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    1. Edwin Mansfield, 1993. "The Diffusion of Flexible Manufacturing Systems in Japan, Europe and the United States," Management Science, INFORMS, vol. 39(2), pages 149-159, February.
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    Citations

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    Cited by:

    1. John W. Gardner & Kenneth K. Boyer & Peter T. Ward, 2017. "Achieving Time-Sensitive Organizational Performance Through Mindful Use of Technologies and Routines," Organization Science, INFORMS, vol. 28(6), pages 1061-1079, December.
    2. Gideon D. Markman & William B. Gartner, 2002. "Is Extraordinary Growth Profitable? A Study of Inc. 500 High–Growth Companies," Entrepreneurship Theory and Practice, , vol. 27(1), pages 65-75, January.
    3. Ana Maria Peredo & Robert B. Anderson & Craig S. Galbraith & Benson Honig & Leo Paul Dana, 2004. "Towards a theory of indigenous entrepreneurship," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 1(1/2), pages 1-20.
    4. Spanos, Yiannis E. & Voudouris, Irini, 2009. "Antecedents and trajectories of AMT adoption: The case of Greek manufacturing SMEs," Research Policy, Elsevier, vol. 38(1), pages 144-155, February.
    5. Dangayach, G.S. & Deshmukh, S.G., 2006. "An exploratory study of manufacturing strategy practices of machinery manufacturing companies in India," Omega, Elsevier, vol. 34(3), pages 254-273, June.
    6. Cheng, Yang & Matthiesen, Rikke & Farooq, Sami & Johansen, John & Hu, Haibo & Ma, Lei, 2018. "The evolution of investment patterns on advanced manufacturing technology (AMT) in manufacturing operations: A longitudinal analysis," International Journal of Production Economics, Elsevier, vol. 203(C), pages 239-253.
    7. Shashi, & Centobelli, Piera & Cerchione, Roberto & Singh, Rajwinder, 2019. "The impact of leanness and innovativeness on environmental and financial performance: Insights from Indian SMEs," International Journal of Production Economics, Elsevier, vol. 212(C), pages 111-124.
    8. Bourke, Jane & Roper, Stephen, 2016. "AMT adoption and innovation: An investigation of dynamic and complementary effects," Technovation, Elsevier, vol. 55, pages 42-55.
    9. Boyer, Kenneth K., 2001. "E-operations: a guide to streamlining with the internet," Business Horizons, Elsevier, vol. 44(1), pages 47-54.
    10. Stornelli, Aldo & Ozcan, Sercan & Simms, Christopher, 2021. "Advanced manufacturing technology adoption and innovation: A systematic literature review on barriers, enablers, and innovation types," Research Policy, Elsevier, vol. 50(6).

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