The Effects of International Operations on the Relationship Between Manufacturing Improvement Programs and Operational Performance

Zsolt Matyusz, Krisztina Demeter, Harry Boer

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    The link between manufacturing programs and operational performance, and the effects of company
    internal and external factors on that relationship, are well studied in the literature, both theoretically and
    empirically. However, previous studies rarely took into account how the scope of operations of the
    business unit affects the relationship between manufacturing programs and performances. We investigate
    the scope of operations from the manufacturing perspective (i.e. companies that manufacture in only one
    country have narrow scope of operations, while companies that manufacture in more than one country
    have broad scope of operations).
    We apply structural equation modelling (SEM) using PLS path modelling to investigate the effect of
    scope of operations on the relationship between manufacturing improvement programs and operational
    performance. Manufacturing improvement programs are programs like quality improvement, product
    development, automation, etc. Operational performance includes a range of indicators related to cost,
    quality, time and flexibility. Data were acquired through the International Manufacturing Strategy Survey
    executed in 2005 in engineering and assembly industries (ISIC 28-35).
    We expected the scope of operations to significantly moderate the relationship between manufacturing
    improvement programs and operational performance, but the analysis revealed no significant results. We
    discuss the managerial implications of this result and also give ideas for further location-based research in
    operations management.
    Original languageEnglish
    Publication date2010
    Number of pages12
    Publication statusPublished - 2010
    Event16th International Working Seminar on Production Economics - Innsbruck, Austria
    Duration: 1 Mar 20105 Mar 2010


    Conference16th International Working Seminar on Production Economics

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