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The unique and complementary effects of manufacturing technologies and lean practices on manufacturing operational performance

Listed author(s):
  • Khanchanapong, Teerasak
  • Prajogo, Daniel
  • Sohal, Amrik S.
  • Cooper, Brian K.
  • Yeung, Andy C.L.
  • Cheng, T.C.E.
Registered author(s):

    This study investigates the unique and complementary effects of manufacturing technologies and lean practices on operational performance of manufacturing firms. Despite the importance of understanding how various resources are interrelated within firms, there have been few studies focusing on this area. Using data collected from 186 manufacturing plants in Thailand, we found that both manufacturing technologies and lean practices have unique effects on a range of operational performance dimensions, including quality, lead-time, flexibility, and cost. More importantly, however, we also found that both organizational resources have complementary (or synergistic) effects on those operational performance dimensions. Based on the research findings, we offer theoretical and practical insights which support the importance of building strong manufacturing technologies and lean practices that maximize operational performance.

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    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 153 (2014)
    Issue (Month): C ()
    Pages: 191-203

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    Handle: RePEc:eee:proeco:v:153:y:2014:i:c:p:191-203
    DOI: 10.1016/j.ijpe.2014.02.021
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    1. Boyer, Kenneth K. & Leong, G. Keong, 1996. "Manufacturing flexibility at the plant level," Omega, Elsevier, vol. 24(5), pages 495-510, October.
    2. Matsui, Yoshiki, 2007. "An empirical analysis of just-in-time production in Japanese manufacturing companies," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 153-164, July.
    3. Milgrom, Paul & Roberts, John, 1995. "Complementarities and fit strategy, structure, and organizational change in manufacturing," Journal of Accounting and Economics, Elsevier, vol. 19(2-3), pages 179-208, April.
    4. Zhou, Honggeng & Keong Leong, G. & Jonsson, Patrik & Sum, Chee-Chuong, 2009. "A comparative study of advanced manufacturing technology and manufacturing infrastructure investments in Singapore and Sweden," International Journal of Production Economics, Elsevier, vol. 120(1), pages 42-53, July.
    5. Cowton, CJ & Vail, RL, 1994. "Making sense of just-in-time production: A resource-based perspective," Omega, Elsevier, vol. 22(5), pages 427-441, September.
    6. Kannan, Vijay R. & Tan, Keah Choon, 2005. "Just in time, total quality management, and supply chain management: understanding their linkages and impact on business performance," Omega, Elsevier, vol. 33(2), pages 153-162, April.
    7. Machuca, José A.D. & Ortega Jiménez, Cesar H. & Garrido-Vega, Pedro & de los Ríos, José Luis Pérez Diez, 2011. "Do technology and manufacturing strategy links enhance operational performance? Empirical research in the auto supplier sector," International Journal of Production Economics, Elsevier, vol. 133(2), pages 541-550, October.
    8. Prajogo, Daniel & Olhager, Jan, 2012. "Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration," International Journal of Production Economics, Elsevier, vol. 135(1), pages 514-522.
    9. Singh, Prakash J., 2008. "Empirical assessment of ISO 9000 related management practices and performance relationships," International Journal of Production Economics, Elsevier, vol. 113(1), pages 40-59, May.
    10. Intarakumnerd, Patarapong & Chairatana, Pun-arj & Tangchitpiboon, Tipawan, 2002. "National innovation system in less successful developing countries: the case of Thailand," Research Policy, Elsevier, vol. 31(8-9), pages 1445-1457, December.
    11. Prajogo, Daniel I. & Sohal, Amrik S., 2006. "The integration of TQM and technology/R&D management in determining quality and innovation performance," Omega, Elsevier, vol. 34(3), pages 296-312, June.
    12. Raturi, Amitabh S. & Jack, Eric P., 2004. "Creating a volume-flexible firm," Business Horizons, Elsevier, vol. 47(6), pages 69-78.
    13. Swamidass, Paul M., 2003. "Modeling the adoption rates of manufacturing technology innovations by small US manufacturers: a longitudinal investigation," Research Policy, Elsevier, vol. 32(3), pages 351-366, March.
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