The Influence of Economic Context on the Relationship Between Manufacturing Strategy, Practices and Performance

Lillian do Nascimento Gambi*, Harry Boer, Henrike Engele Elisabeth Boer, Mateus Cecílio Gerolamo

*Corresponding author for this work

Research output: Contribution to book/anthology/report/conference proceedingArticle in proceedingResearchpeer-review

Abstract

The aim of this study is to investigate the relationships between manufacturing strategy, practices and performance, and the role of economic context in these relationships. Based on international data collected in 840 firms from 21 countries, a theoretical model with those relationships was tested using Structural Equation Modeling. The results demonstrate that economic context has no effect on strategy, and a negative effect on manufacturing practices and performance. The findings also show that strategy positively affects performance directly and indirectly through the adoption of manufacturing practices. This study contributes for theory and provides managerial insight, showing that for manufacturing firms to be successful in improving their performance it is important to achieve consistency between strategy and the manufacturing practices adopted by the firms. Besides, the study also shows that companies not only have to develop an appropriate strategy to improve performance, but also need to understand how context affects their strategic decisions on manufacturing practices.

Original languageEnglish
Title of host publicationIndustrial Engineering and Operations Management - XXVI IJCIEOM, 2020
EditorsAntônio Márcio Thomé, Rafael Garcia Barbastefano, Luiz Felipe Scavarda, João Carlos dos Reis, Marlene Paula Amorim
Number of pages11
PublisherSpringer VS
Publication date2020
Pages405-415
ISBN (Print)978-3-030-56919-8
ISBN (Electronic)978-3-030-56920-4
DOIs
Publication statusPublished - 2020
Event26th International Joint Conference on Industrial Engineering and Operations Management, IJCIEOM 2020 - Rio de Janeiro, Brazil
Duration: 8 Jul 202011 Jul 2020

Conference

Conference26th International Joint Conference on Industrial Engineering and Operations Management, IJCIEOM 2020
Country/TerritoryBrazil
CityRio de Janeiro
Period08/07/202011/07/2020
SeriesSpringer Proceedings in Mathematics and Statistics
Volume337
ISSN2194-1009

Bibliographical note

Funding Information:
Acknowledgments The authors thank the financial support provided by National Council for Scientific and Technological Development (CNPq), Brazil; and State of Minas Gerais Research Foundation (FAPEMIG), Brazil.

Publisher Copyright:
© 2020, The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG.

Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.

Keywords

  • Economic context
  • Manufacturing practices
  • Performance
  • Strategy

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