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The Impact of Complexity, Rate of Change and Information Availability on the Production Planning and Control Structure

Author

Listed:
  • van Assen, M.F.
  • van de Velde, S.L.

Abstract

The organizational theory literature argues that the more uncertain the environment, the more likely the firm’s operational decision structure is decentralized. However, it remains unclear which uncertainty dimensions (i.e. complexity, rate of change and lack of information) impacts the production planning and control structure the most given today’s turbulent manufacturing environments. Based on 206 responses from medium sized Dutch discrete parts manufacturing firms, this study retests the impact of these uncertainty dimensions. This study indicates that each dimension of uncertainty affects the production planning and control structure in a different way. In general, complexity, rate of change and lack of information result in a decentralization of the operational planning and control decision structure, but at the same time a centralization of the customer-order processing decision structure.

Suggested Citation

  • van Assen, M.F. & van de Velde, S.L., 2003. "The Impact of Complexity, Rate of Change and Information Availability on the Production Planning and Control Structure," ERIM Report Series Research in Management ERS-2003-083-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:1033
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    File URL: https://repub.eur.nl/pub/1033/ERS-2003-083-LIS.pdf
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    References listed on IDEAS

    as
    1. Doll, WJ & Vonderembse, MA, 1991. "The evolution of manufacturing systems: Towards the post-industrial enterprise," Omega, Elsevier, vol. 19(5), pages 401-411.
    2. Paswan, Audhesh K. & Dant, Rajiv P. & Lumpkin, James R., 1998. "An Empirical Investigation of the Linkages among Relationalism, Environmental Uncertainty, and Bureaucratization," Journal of Business Research, Elsevier, vol. 43(3), pages 125-140, November.
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    More about this item

    Keywords

    empirical research method; production planning and control structure; structural equations model; uncertainty;
    All these keywords.

    JEL classification:

    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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