Economic and Strategic Justification of AMT Inferences From Industrial Practices

Organizations vary greatly in their approaches and success in justifying investment in advanced manufacturing technology (AMT). This study investigates usage of various justification approaches by US manufacturers and examines the impact of such practices on the ultimate performance of AMT projects. Responses from a survey mailed to 584 plants in the US were used to test four propositions concerning AMT justification practices. We first discover that the majority of plants are not utilizing the more sophisticated justification techniques that are being touted by many researchers. Significantly, firms using hybrid justification strategies which include both economic and strategic justification approaches were found to attain higher levels of success from their AMT projects than plants that used only one method. However, once a plant used a hybrid justification method, preference for either strategic or economic criteria had no impact on the level of success of the project. Not surprisingly, plants using the more complex manufacturing technologies were more likely to have multiple functional departments involved in the justification process. Finally, the composition of inter-departmental teams for planning, justification and installation activities have an impact on the success of the AMT project

Planning for Advanced Manufacturing Technology: A Research Framework

While some reports on successes of advanced manufacturing technologies (AMT) have been glowing, many companies have tossed millions of dollars worth of fancy equipment into their factories and wound up with little to show for it. It is becoming clear that many of the AMT failures today can be attributed to an inadequate planning process. Proposes a four-stage research framework that addresses issues in: planning the manufacturing system; planning for an appropriate infrastructure; planning for new relationships with the external environment; and justifying investment in AMT. Assesses the strengths and weaknesses of selected contributions in each stage, and identifies gaps in knowledge where research is needed. The framework devised should help tomorrow\u27s research build on the past and increase the research\u27s acceptance by industry, since it draws on both research- and practitioner-based literature along with findings of the field study

Investment Justification of Advanced Manufacturing Technology: An Empirical Analysis

This study surveys the usage of various justification activities in plants that have adopted advanced manufacturing technology (AMT). Relationships between the usage of these activities and the level of performance of AMT projects are also determined. Our findings suggest that justification approaches and justification criteria preference help to explain the adoption of the more integrated technologies. However, the number of functional departments involved in AMT justification activities is more effective in explaining project performance than the other justification activities. Our results also indicate that the majority of plants are not utilizing discounted cash-flow and probabilistic justification techniques. This study provides some insights into the formation of decision making teams for the justification process. Future research directions in this area are also suggested

Customer focus, supply-chain relational capabilities and performance: Evidence from US manufacturing industries

Purpose This paper aims to investigate the extent to which a firm\u27s customer focus drives several interlinked facets of supply chain management and their relationships to customer service and financial performance. Design/methodology/approach Drawing on diverse streams of research, the authors develop and test an integrated model in which customer focus is proposed to foster supply-chain relational capabilities, leading to beneficial performance outcomes. This study\u27s empirical validity is enhanced by collecting data from over 200 US manufacturing firms and testing the model using SEM. Findings This empirical investigation documents significant positive relationships between (a) customer focus and supply-chain relational capabilities, (b) customer focus and customer service, (c) supply-chain relational capabilities and customer service, and (d) customer service and financial performance. Practical implications This study holds the important implication for managers that, in order to be effective, supply chain partners must reconfigure their supply chains to be more customer oriented and continually develop and leverage the relational competencies in order to enhance firm competitiveness. Originality/value Interdisciplinary in nature, this study is one of the first to conduct empirical supply chain management research using multiple and complementary theoretical perspectives, including strategic management and relationship marketing in order to gain a better understanding of the nuances involved in fostering strategic collaboration among supply chain partners. © Copyright - 2011 Emerald Group Publishing Limited. All rights reserved

Motives and performance outcomes of sustainable supply chain management practices: a multi-theoretical perspective

Many researchers believe the tremendous industrial development over the past two centuries is unsustainable because it has led to unintended ecological deterioration. Despite the ever-growing attention sustainable supply-chain management (SSCM) has received, most SSCM research and models look at the consequences, rather than the antecedents or motives of such responsible practices. The few studies that explore corporate motives have remained largely qualitative, and large-scale empirical analyses are scarce. Drawing on multiple theories and combining supply-chain and business ethics literature, we purport that instrumental, relational, and moral motives are behind a firm’s engagement in SSCM practices. Specifically, we examine the links between corporate motives, SSCM practices, and firm performance. Using a sample of 259 supply-chain firms in Germany, we empirically test five hypothesized relationships. Our results reveal that relational and moral motives are key drivers, and that firms exhibiting high levels of moral obligations tend to outperform those primarily driven by amoral considerations. Findings of this study contribute to multiple literatures espousing sustainability management and can help policy makers, stakeholder groups, and scholars develop more robust strategies for encouraging firms to practice SSCM