Manufacturing Strategy – Plans and Business Performance

Abstract

Based on an empirical study of 184 Swedish manufacturers. Provides an operationalization of manufacturing strategy. Bases the definition of a manufacturing strategy on the competitive means which the business units emphasize to compete on the market, and the nature of manufacturing objectives. Formulates and tests hypotheses within areas of manufacturing strategy that have been identified as missing themes in the literature. Shows that companies that have a manufacturing strategy are significantly more profitable than those without one. They are also significantly better in competing with dependable deliveries. Argues that companies with a manufacturing strategy, regardless of the direction of the strategy, have identified quality programmes and other preventive actions as being fundamental issues in manufacturing. Thus gives support to the research that suggests that competitive priorities should be sequentially applied in manufacturing.

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