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Analysis of interaction fit between manufacturing strategy and technology management and its impact on performance

Abstract

Purpose – Using the matching/difference perspective, the purpose of this paper is to examine the interaction fit between a set of managerial practices from manufacturing strategy (MS) and another set from technology management (TM) and the link of this fit to operational performance. Design/methodology/approach – The paper applies multiple statistical methods to a database of an international sample of plants in the auto supplier sector to explore (deviation score analysis/multiple linear regression) and confirm (correlation and variance subgroup analysis) whether a matching model presents organisational disequilibrium, where states of fit are related to effectively higher performance than states of misfit. Findings – Results from regression show that there were no states of misfit between the levels of both manufacturing practice sets/areas. This means that there are no significant differences in performance that may be tested for matching interaction. However, subgroup analysis provides greater detail on why there might not be any misfits (i.e. state of fit), by illustrating that when grouping by plant type (high/world class performer, HP, and standard performer, SP), the slight lack of significant difference in the correlation between MS and TM was in favour of HP. The implementation levels of MS-TM found were not significantly different, showing for HP slightly higher levels for both practices (þ& þ ) than for SP, with slightly lower values in both cases (2 & 2). Therefore, it seems that both groups might perform equally well, due not to interaction but to the presence of a state of MS-TM fit alone. A state of fit such as this, known as selection or congruency, would be the reason for there being no significant matching interaction originally. Originality/value – Most of the interaction fit bibliography is from the accounting perspective.Therefore, the impact of the matching interaction fit between MS and TM (as well as its impact on performance) has not been well documented theoretically, and much less, empirically, in production and operations management.

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Analysis of interaction fit between manufacturing strategy and technology management and its impact on performance

Author: Ortega Jiménez, César Humberto; Garrido-Vega, Pedro; Machuca, José A.D.
Publisher: Esmerald Publishing
Year: 2012
DOI: 10.1108/01443571211253146
Source: https://idus.us.es/bitstreams/1134044e-e8aa-4b64-be44-902077d12deb/download
ANALYSIS OF INTERACTION FIT BETWEEN MANUFACTURING
STRATEGY AND TECHNOLOGY MANAGEMENT AND ITS IMPACT ON
PERFORMANCE
Cesa H. O ega Jimenez (1) & (2)
[email p o ec ed]
Ped o Ga ido Vega (2)
Jose An onio Dominguez Machuca (2)
(1) Uni e sidad Nacional Au onoma de Hondu as (UNAH)
Ins i u o de In es igaciones Economicas y Sociales (IIES)
Edi icio 5, Plan a Baja, Ciudad Uni e si a ia, Bl d. Suyapa
Tegucigalpa, MDC., Hondu as, (Cen al Ame ica)
(2) Uni e sidad de Se illa (Spain)
Facul ad de Ciencias Economicas y Emp esa iales
Depa amen o de Economia Financie a y Di ección de Ope aciones
G.I.D.E.A.O. (G upo de In es igación en Di eccion de Ope aciones en la Indus ia y los
Se icios)
A enida Ramon y Cajal, 1
41018 – Se illa (Spain)
2
ANALYSIS OF INTERACTION FIT BETWEEN MANUFACTURING
STRATEGY AND TECHNOLOGY MANAGEMENT AND ITS IMPACT ON
PERFORMANCE
ABSTRACT
Pu pose
Using he ma ching/di e ence pe spec i e, his pape examines he in e ac ion i be ween a se
o manage ial p ac ices om manu ac u ing s a egy and ano he se om echnology managemen
and he link o his i o ope a ional pe o mance.
Design/me hodology/app oach
This pape applies mul iple s a is ical me hods o a da abase o an in e na ional sample o plan s
in he au o supplie sec o o explo e (de ia ion sco e analysis/mul iple linea eg ession) and
con i m (co ela ion and a iance subg oup analysis) whe he a ma ching model p esen s
o ganisa ional disequilib ium, whe e s a es o i a e ela ed o e ec i ely highe pe o mance han
s a es o mis i .
Findings
Resul s om eg ession show ha he e we e no s a es o mis i be ween he le els o bo h
manu ac u ing p ac ice se s/a eas. This means ha he e a e no signi ican di e ences in
pe o mance ha may be es ed o ma ching in e ac ion. Howe e , subg oup analysis p o ides
g ea e de ail on why he e migh no be any mis i s (i.e. s a e o i ), by illus a ing ha when
g ouping by plan ype (high/wo ld class pe o me , HP, and s anda d pe o me , SP), he sligh lack
o signi ican di e ence in he co ela ion be ween manu ac u ing s a egy (MS) and Technology
Managemen (TM) was in a ou o HP. The implemen a ion le els o MS-TM ound we e no
signi ican ly di e en , showing o HP sligh ly highe le els o bo h p ac ices (+ & +) han o SP,
wi h sligh ly lowe alues in bo h cases (- & -). The e o e, i seems ha bo h g oups migh pe o m
equally well, due no o in e ac ion bu o he p esence o a s a e o MS-TM i alone. A s a e o i
such as his, known as selec ion o cong uency, would be he eason o he e being no signi ican
ma ching in e ac ion o iginally.
O iginali y/ alue
Mos o he in e ac ion i bibliog aphy is om he accoun ing pe spec i e. The e o e, he impac
o he ma ching in e ac ion i be ween MS and echnology managemen (as well as i s impac on
pe o mance) has no been well documen ed heo e ically, and much less, empi ically, in POM.
Keywo ds: Manu ac u ing indus ies, Au omo i e componen s indus y, P oduc ion managemen ,
Ope a ions managemen , Manu ac u ing s a egy, Technology managemen , Pe o mance, High
pe o mance manu ac u ing
1. INTRODUCTION
Wi h he aim o imp o ing pe o mance in esponse o inc eased compe i ion, companies ha e
implemen ed a con inual cu en o new p oduc ion p ac ices, om he oldes , such as MRP, o he
mos ecen , ela ed o supply chain managemen (Al alla-Luque and Medina-López, 2009).
Howe e , he e is a unique pa h o high pe o mance o each manu ac u e based on he
implemen a ion o he bes manu ac u ing p ac ices and con ingen ac o s and links be ween
manu ac u ing p ac ices (Filippini e al., 1996; Filippini e al., 2001; Sch oede and Flynn, 2001).
P e ious s udies on his opic s ill shed li le ligh on he easons why implemen ing he same
manu ac u ing p ac ices migh lead o high pe o mance in some plan s, bu no in o he s (e.g.
Fo za, 1996; Filippini, 1997; Filippini e al., 1998; Maie , 2000). Lack o success in some plan s
may be pa ially due o a aul y link be ween p ac ices. S a ing om his ounda ional idea o
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in e connec ion, he p esen s udy es s he pe o mance e ec s o he link be ween manu ac u ing
s a egy (MS) and echnology managemen (TM).
Po e (1983, 1985) pu s g ea s ess on he need o hink h ough he in e connec ion be ween
bo h se s o p ac ices co e ed in his s udy (s a egy and echnology). In his espec , pa o he
specialised li e a u e (e.g. Skinne , 1969; Po e , 1983) explains ha in o de o d i e
compe i i eness in o ganisa ions, s a egy should d i e echnology de elopmen . The e o e,
echnological de elopmen can p o ide he plan wi h a g oup o compe i i e weapons and a be e
echnological base, applicable o o he p oduc s and ma ke s (Ho e and Schendel, 1978; I ami and
Numagami, 1992). This implies he adop ion o a unidi ec ional pe spec i e, ha is o say, he
causal ela ionship goes om s a egy o echnology, and no ice- e sa.
The o he side o he coin (also unidi ec ional) ha is appa en om specialised li e a u e (e.g.
Hayes, 1985) conside s echnological capaci y as he ounda ion o s a egy, i.e., i p esen s a
pe spec i e in which echnology should guide s a egy. F om his pe spec i e, he plan ends o
look inwa ds o i s s a egic op ions—inside i s limi a ions and echnological capaci ies. I can be
a gued ha in his si ua ion, echnology can ac as a ool o a plan ’s ad an age (Po e , 1983), o as
a es ic ion o which i mus hen adap (Ho e and Schendel, 1978). The plan ’s p oduc /p ocess
po olio he e o e in luences he kind o echnology ha he o ganisa ion ies o main ain o
de elop. This hen a ec s he echnology on which he plan chooses o base i s s a egy: he e o e,
s a egy is limi ed by echnology (Po e , 1985).
Up o he 1990s, mos o he s udies essen ially iewed he ela ionship be ween s a egy and
echnology om one o hese wo unidi ec ional pe spec i es. This has mean an al e na i e ocus
has been sidelined ha may allow es ing o bo h pe spec i es simul aneously, bidi ec ionally.
Thus, beyond he gene al a gumen ha manu ac u ing s a egy and echnology should be
ha monised, con ingency and in e connec ion ideas allow hem o be e-examined o possible
bidi ec ional in e ac ions be ween MS and TM p ac ices.
This idea o link is ha nei he MS no TM by hemsel es will achie e hei po en ial unless hey
a e bo h componen s o a gene al pe o mance pla o m. Despi e he impo ance o disco e ing how
o achie e his in e ela ionship, i s empi ical explo a ion has no been well documen ed in he
P oduc ion and Ope a ions Managemen (POM) li e a u e. Hence, his wo k ocuses on he possible
impac o he in e ac ion be ween manu ac u ing s a egy and echnology managemen p ac ice se s
on pe o mance —a undamen al aspec o ou empi ical esea ch.
A coun less numbe o possible links exis be ween MS and TM which can be used o es he
ex en o which hey a e ela ed and hei implica ions on pe o mance, bu his esea ch ocuses
p ima ily on supplemen a i y (Roca and Bou, 2006). A supplemen a y ela ionship is a simila i y o
con e gen adjus men be ween wo independen a iables. This would imply a con e gence,
in e sec ion o endency sha ed by bo h MS and TM. The ollowing esea ch ques ions can be
o mula ed on his basis: 1) is he e ma ching in e ac ion i be ween MS and TM? and 2) does his
in e ac ion a ec pe o mance? This pape seeks o explo e and con i m bo h ques ions.
In he ollowing sec ion, he li e a u e on he ela ionship be ween manu ac u ing s a egy and
TM is e iewed. Sec ion 3 desc ibes he esea ch design and ou lines he possible ela ionship
wi hin he amewo k o his s udy’s p oposals and hypo heses and i s “cons uc s”. Sec ion 4
desc ibes and discusses he me hodology o he s udy, in pa icula he de elopmen o he
ques ionnai es, da a collec ion and model me hods. Sec ion 5 p esen s he esul s and discussion.
Sec ion 6 se s ou he inal conside a ions o he pape , de ailing i s con ibu ions, implica ions and
limi a ions and he di ec ions u u e esea ch could ake.
2. LITERATURE REVIEW
As a as he gene al POM li e a u e is conce ned, p e ious s udies ha e deal mo e wi h he links
be ween echnology and business s a egy han wi h he speci ic uni- o mul idimensional links
be ween echnology managemen (TM) and manu ac u ing s a egy (MS). Some esea che s ha e
4
classi ied he impo an dimensions o echnology ha a e adjus ed o a pa icula s a egy (e.g.
Fos e , 1986). Fo his pa , Pa ke (2000) explo ed he cu en and u u e dynamics be ween
business s a egy and echnology, and hei e ec on pe o mance, wi hou conside ing ime se ies
(longi udinal s udies).
POM esea che s ha e s udied he empi ical connec ions be ween speci ic dimensions o
echnology and business s a egy (e.g. Hamb ick e al., 1983). Some o hei disco e ies indica e he
need o de e mine he i be ween speci ic dimensions o business s a egy and echnology (e.g.
Pa hasa hy and Se hi, 1993).
Thus, some o he abo e s udies ha e p oposed in eg a ed models ha desc ibe i be ween
se e al dimensions o echnology and business s a egy (e.g. Maidique and Pa ch, 1988). Howe e ,
hey do no conside whe he he e is a supplemen a y ela ionship be ween s a egy and echnology
in hei impac on pe o mance
Al hough hese s udies ha e inc eased he gene al unde s anding o he link be ween s a egy and
echnology, hey ha e no examined di e en ial aspec s and hei impac on pe o mance.
Fu he mo e, al hough hey ha e p o ided ideas on he ela ionships be ween s a egy and
echnology, he co esponding empi ical alida ions hus a ha e been minimal and e en ewe
ha e been aluable om he p esen poin -o - iew o conside ing Manu ac u ing S a egy
speci ically, since mos o hese s udies analyse he ela ionships om he pe spec i e o business
s a egy a he han ha o MS.
Speci ically, i we explo e he esul s ob ained om he High Pe o mance Manu ac u ing
P ojec compiled in he book edi ed by Sch oede and Flynn, 2001, one may see ha ou o he o e
110 s udies included, only Mo i a and Flynn (1997) di ec ly deal wi h he MS - TM ela ionship.
Howe e , hey do so in nei he an exclusi e no an exhaus i e way, since om he MS pe spec i e,
hey app oach he ela ionship only h ough he dimension o s a egic adap a ion wi h o he
p ac ices se s. Fu he mo e, om he echnological poin -o - iew, hey deal only wi h he concep
o echnology being adap ed o i s scales. Amongs hei conclusions, hey indica e ha an impo an
link does exis be ween hese concep s and ha he e is a high deg ee o co ela ion o his link o
di e en dimensions o pe o mance.
Simila ly, only h ee pape s on his impo an issue we e ound a e he HPM book was
published. Ma sui (2002) s udied he con ibu ion o di e en manu ac u ing p ac ices—including
MS (wi h di e en dimensions)— o he de elopmen o echnology manage ial p ac ices ( ha is,
e ec i e p ocess implemen a ion, in e unc ional design e o s, design p oduc simplici y). His
esul s p o ide clea e idence ha he employmen o se e al manu ac u ing p ac ice se s (including
MS) in he de elopmen o echnology has a s ong impac on he compe i i eness o a
manu ac u ing plan . Meanwhile, McKone and Sch oede (2002) iden i ied he ype o plan s ha
make use o p ocess and p oduc echnology by aking in o conside a ion a plan ’s ela ionship wi h
i s con ex (including s a egic aspec s bu no including pe o mance). Finally, Ke oki i and
Sch oede (2004) seek o use s a egic e en uali ies in ol ed in he adop ion and implemen a ion o
se e al manu ac u ing p ac ices o achie e high pe o mance. Howe e , hey include “design o
manu ac u abili y" as he only echnology- ela ed a iable. Thus, none o hese HPM pape s es s
o in e ac ion be ween TM and MS.
In conclusion, in gene al e ms p e ious esea ch has had undamen ally concep ual o ien a ions.
Likewise, he ew exis ing empi ical s udies ha e no documen ed he impac o he MS-TM
supplemen a y in e ac ion on pe o mance, as can be seen in he bibliog aphy below (mos o he
s udies ela ed o supplemen a y in e ac ion ha e been done om he accoun ing and no om he
POM poin -o - iew). Because o his, i is no clea whe he a supplemen a y ela ionship be ween
MS and TM exis s, o whe he his in e ac ion has any impac on ope a ional pe o mance. This
esea ch seeks o in es iga e possible impac s o he supplemen a y in e ac ion be ween MS and
TM on ope a ional pe o mance.
5
3. THEORETICAL BACKGROUND AND HYPOTHESES
I is a ac ha manu ac u ing p ac ices (MPs) impac on pe o mance, whe he posi i ely o
nega i ely, and al hough empi ical con i ma ion o his may shed mo e ligh on ascina ing
in e ences, i is a mo e in e es ing challenge o in es iga e how links be ween MPs con ibu e o
se ing plan s on hei pa hs owa d high pe o mance (Sch oede and Flynn, 2001).
In his espec , one impo an ocus o in es iga ion in POM has been o ou line he impac o he
link be ween di e en manu ac u ing p ac ices on pe o mance (e.g. Sch oede and Flynn, 2001).
Following his line o esea ch, his pape in es iga es whe he a se o echnology manage ial
p ac ices and a se o MS p ac ices in luence each o he in hei ela ionship wi h pe o mance. This
wo k uses he concep o i be ween he wo p ac ice g oups. B oadly-speaking, i means ha
cong uency be ween wo o mo e ac o s leads o imp o ed pe o mance (see Venka aman and
P esco , 1990). This concep has also been p oposed in o he a eas wi h o he denomina ions (e.g.
Ald ich, 1979).
In he ollowing, a p oposed ‘ma ching’ model and i s espec i e hypo heses a e desc ibed o
he ela ionship being s udied. This is done by concep ualising he ole o he e ec on pe o mance
o he in e connec ion be ween he p ac ices in ques ion om he pe spec i e o in e ac ion i
(Venka aman, 1989; Dele y and Do y, 1996). In e ac ion ies o measu e an ou come in he link
be ween wo independen a iables since bo h i s and mis i s a e expec ed in he link. The
in e ac ion o m is discussed in mo e de ail below. Mos o he i li e a u e conside ed he e is in
keeping wi h con ingency heo y (e.g. D azin and Van de Ven, 1985), which will be commen ed
upon in 3.1.
3.1 In e ac ion i
The Con ingency Pe spec i e has been a e y impo an ocus in empi ical esea ch and has
gene a ed a subs an ial body o knowledge (e.g. Chenhall 2003). I s a es ha he e ec o a ac o
canno be uni e sally supe io in all con ingen and o ganisa ional con ex s. Thus i s undamen al
pos ula e is ha one single be e way o o ganising does no exis . Donaldson (1994) s a es ha he
concep o i be ween s uc u al and con ex ual (con ingency) cha ac e is ics is a he co e o
con ingency heo y and ha ailu e o achie e a i would lead o in e io esul s.
Con ingency s udies in he nine een-six ies and -se en ies (Woodwa d, 1965; Van de Ven and
Delbecq, 1974) concen a ed on seeing how his i was achie ed om selec ion pe spec i es. The
adjus men p emise assumed in selec ion is cong uency be ween wo independen a iables
mu ually in luencing each o he while ope a ing in a plan . No ou come is measu ed since we
expec no mis i s in he wo a iable in e ela ionship. In o he wo ds, i s possible impac on
pe o mance is no analysed. Al hough some esea che s ou lined hypo heses on dependencies
be ween i and e ec i eness, hese ela ionships we e no usually concep ualised o e alua ed.
O e ime his o m o es ing i came o be ques ioned (e.g. Pennings, 1992) and i was a gued ha
con ingencies should be unde s ood as ela ionships wi h a ypical ou come, such as pe o mance
(Van de Ven and D azin, 1985; Venka aman, 1989), whe e e ec i eness is he esul o he
in e ac ion be ween a leas wo a iables, gene ally one con ex ual and one s uc u al (in e ac ion
pe spec i e).
Resea ch based on con ingency has mainly ocused on he s udy o i assuming ha manage s
ac wi h he in en ion o adap ing hei o ganisa ions o changes in con ex o achie e i and o
inc ease pe o mance. Al hough he con ingency iew is a e y impo an ocus in POM (e.g. Weill
and Olson, 1989) he concep o i , especially in e ac ion, has been modelled in o ms ha limi
s a is ical compa isons, since POM esea che s mos ly pos ula e ela ionships swi ching back and
o wa d be ween in e ac ion, mode a ion and con ingency e ms.
Howe e , his pape does no seek o be c i ical o he seemingly simple explana ions o
con ingency heo y (e.g. Schoonho en, 1981; Van de Ven and D azin, 1985; Meilich, 2006)

6
because o ague p edic ions and an inabili y o make i wo k p ope ly. I conside s such d awbacks
and ies o o e come hem when modelling i .
Two heo e ical o ms o i a e gene ally used o classi y an in es iga ion based on con ingency:
bi a ia e and sys emic. The bi a ia e model examines he way in which con ex ual (con ingen )
ac o s a e ela ed o he s uc u al aspec s o plan s (e.g. a manu ac u ing plan) connec ing his
associa ion wi h pe o mance (D azin and Van de Ven, 1985). The sys emic model conside s he
way in which mul iple s uc u al and con ex ual aspec s combine in a a ie y o ways o imp o e
pe o mance (Chenhall, 2003). This esea ch ocuses on he de elopmen o me hods o he
bi a ia e model.
The bi a ia e model is used he e because, wi hin con ingency, i inco po a es and es s he
unique and iden i iable e ec s o con ingen a iables in hei ela ionship wi h a company’s
s uc u al cha ac e is ics in o de o imp o e he ou come. This model con empla es wo ini ially
independen a iables and one dependen a iable. Going beyond con ingency, ou s udy examines
wo independen a iables (MS and TM p ac ice se s) o de e mine whe he some ype o in e ac ion
be ween he wo exis s. The goal is o de ec whe he hese a iables simul aneously play bo h
con ingen and s uc u al oles in imp o ing pe o mance (ou dependen a iable). Al hough his is
no he con ingency pe spec i e pe se, bu a he a i ype used wi hin i , i se es as a s a ing
poin o compa ison since he small amoun o exis ing li e a u e on he link be ween hese
p ac ices (wi h hei di e en app oaches) has been w i en om wi hin he con ingency iew (e.g.
Be ge on and Raymond, 1995).
In con ingency-based esea ch, wo ways o concep ualising bi a ia e i commonly appea (Van
de Ven and D azin, 1985; Venka aman, 1989): selec ion and in e ac ion. Fi in POM may be gi en
when he managemen ies o con ol o imp o e a manu ac u ing p ac ice (MP1; in his pape ,
ei he a manu ac u ing s a egy o a echnology managemen p ac ice se ) by egula ing o adap ing
i s implemen a ion le el o ake in o accoun he implemen a ion le el o a second p ac ice (MP2; in
his pape , he co esponding se ) and/o ice- e sa (D azin and Van de Ven, 1985). On he one
hand, selec ion ep esen s a cong uence app oach by es ing he dependency be ween MP1 and
MP2, wi hou any examina ion o whe he his ela ionship in luences pe o mance. In o he wo ds,
i assumes implici ly ha i is he esul o a na u al selec ion p ocess ha ensu es ha only high
pe o me s su i e o be obse ed a any poin in ime, and hus he e is no need o es he link wi h
pe o mance (D azin and Van de Ven, 1985).
On he o he hand, in e ac ion mis i be ween he wo p ac ices may occu when he MP1
implemen a ion le el does no easily adap o ha o MP2 and shows a wide ange o adap a ion
a iance wi h espec o he op imal le el o MP2 implemen a ion and/o ice- e sa (i.e. mis i
be ween he wo p ac ices se s). Speci ically (see Figu e 1), a gi en alue o he MP2
implemen a ion le el may in e ac wi h di e en alues o he MP1 implemen a ion le el and/o
ice- e sa, leading o di e en alues o pe o mance (P) changes. When his happens, he e is a
s a e o disequilib ium in he plan ’s pe o mance due o a mis i be ween MPs. Figu e 1 shows
di e en pe o mance alues (op imal and lowe pe o mances) associa ed wi h di e en mis i
le els be ween he wo manu ac u ing p ac ices. The op imal line shows be e pe o mances
associa ed wi h highes i s (lowes mis i s), while he di e en poin s o lowe pe o mances show
wo se pe o mances associa ed wi h lowes i s (highes mis i s).
Take in Figu e 1
The e ec on pe o mance o mis i be ween p ac ices may be seen as a was e o esou ces. Tha
is, an e o has been made o implemen a ce ain p ac ice, bu i is no p o iding all he po en ial
bene i s because he o he p ac ice has no ollowed in i s own implemen a ion. The sugges ed
op ion would be o adjus bo h p ac ices’ implemen a ions o he le el o ha which is mo e
implemen ed, as he expec ed pe o mance will be g ea e .
7
Fu he mo e, i we ake MS and echnology managemen (TM), TM may be a uni a ia e a iable
anging om a low le el (-) o a high le el (+) o implemen a ion. MS design may also be measu ed
wi h espec o “implemen a ion le el” anging om low o high. Figu es 2 and 3 illus a e he
expec ed ela ionship be ween MS le els and pe o mance o low and high le els o echnology
managemen implemen a ion, espec i ely. An in e ac ion o m o i is seen because he expec ed
ela ionship be ween MS le els and pe o mance di e s be ween bo h low and high le els o TM,
espec i ely (D azin and Van de Ven, 1985). The al e na i e is also possible: TM implemen a ion
le els-pe o mance di e om le els o he MS implemen a ion ela ionship.
Take in Figu e 2
Take in Figu e 3
Two in e ac ion o ms, di e ence/ma ching ( esidual analysis o de ia ion sco e) and he
mul iplica i e o m, seem o domina e he con ingency li e a u e (Schoonho en, 1981;
Venka aman, 1989; Pennings, 1992). In his pape , he in e ac ion o ma ching may be summa ised
as dis inguishing how close he equi alen implemen a ion alues o he MS se and he TM se a e
(Venka aman, 1989, pp. 430-432). Hence, he causal ela ionship is be ween his ype o i and
pe o mance, whe e ma ching explains in e ac ion as unc ion changes o a cu ilinea pe o mance.
Mul iplica i e in e ac ion exis s when he impac o one independen a iable on pe o mance
di e s o di e en alues o he o he independen a iable, whe e in e ac ion is desc ibed as
g adien s al e ed by unc ions o linea pe o mance. This pape ocuses on he ma ching o m,
based on he heo e ical supposi ions ha a e p oposed in he ollowing.
3.2 P oposals
As ou lined abo e, he e a e di e en opinions in he li e a u e ega ding he na u e o a possible
ela ionship be ween MS and TM. Howe e , his s udy ocuses on examining he e ec o he
in e ac ion (ma ching) be ween bo h se s o manu ac u ing p ac ices on pe o mance using a i
heo y. The i concep may explain why di e en p ac ices a ec speci ic pe o mance measu es.
Fo example, i he goal o a plan is he cos educ ion, a ce ain g oup o hese p ac ices may be
he bes choice. I , on he con a y, a plan wan s o pu sue high quali y, a di e en g oup o
p ac ices may be be e sui ed. Commonly, he co-alignmen complexi y be ween ac o s makes i
di icul o o esee he na u e o he speci ic in e connec ions. Mo eo e , he i concep is no
su icien ly de eloped in POM esea ch o he combina ions o p ac ices ha will lead o low cos s
o o imp o emen s in any o he pe o mance measu e o be p esc ibed exac ly.
As al eady indica ed, in o de o achie e highe pe o mance, manu ac u ing p ac ices should
somehow be linked in he way hey a e implemen ed. Hence, when a plan seeks o capi alise on he
implemen a ion o one o he p ac ice se s in ques ion (TM o MS), bene i s will be maximised
when he plan also implemen s p ac ices om he o he se . Thus, using he i concep (Van de
Ven and D azin, 1985; Venka aman, 1989), MS and TM will be examined wi hin linked heo e ical
amewo ks o enable bo h he e ec s o hei combined implemen a ion on pe o mance, and hei
possible di e en ial e ec s, o be s udied. Mo e speci ically, when di e en p ac ices o MS and
TM a e implemen ed in combina ion, a g ea e le el o ope a ional pe o mance is p esupposed. I
is he e o e assumed ha manu ac u ing plan s ha ha e implemen ed dimensions o bo h MS and
TM p ac ice se s/a eas, a he han a single p ac ice se alone, may be classi ied as high pe o me s.
As p e iously s a ed, he ma ching pe spec i e will be used o es how MS and TM p ac ice se s
i each o he in a s a e o disequilib ium. This model is concep ually de ined as he e ec i e
combina ion (coexis ence) o wo a iables and al hough i does no speci ically ela e o an
ou come, i s e ec on his may be examined. Toge he , hese op imal combina ions o m a i line,
8
whe e pe o mance is assumed o be maximised when he le els o bo h MP se s i each o he .
Thus, he i line should coincide wi h a pe o mance line deno ing maximum pe o mance a each
le el o he MP se s.
Hence, while he ma ching o m assumes inc emen al changes in i , he mul iplica i e
in e ac ion o m canno be used he e since i only ecognises wo p edic o s ha op imise
pe o mance (i.e. i implici ly assumes ha pe o mance is imp o ed by i , bu i as an op imal
combina ion be ween bo h p edic o s is ne e concep ualised.). The implici mul iplica i e i may
be one o he e o-pe o mance, whe e maximal pe o mance would a y. The mul iplica i e o m
es s he e ec o a p edic o on a dependen a iable a one le el o a second p edic o wi h ha a
ano he le el o his las p edic o (Venka aman, 1989; Jacca d and Tu issi 2003, p 7).
Thus, inc emen al changes in any MS o TM se do no necessa ily a ec a plan ’s pe o mance
nega i ely, p o ided ha measu es a e aken by he i m o adjus he le el o implemen a ion o he
o he MP se (TM o MS, espec i ely) acco dingly. D awing on Schoonho en (1981), ma ching is
an in e ac ion o m whe e pe o mance inc eases when he MP1 le el ma ches he equi alen alue
o he MP2 le el (Figu a 4).
Take in Figu e 4
Al hough, ma ching en ails ha a “- & -" combina ion would be as e ec i e as a “+ & +"
combina ion, his seems less plausible in POM a p io i. F om Figu a 4, pe o mance is lowe when
he e is mis i han when he e is i . In he la e case, i is expec ed ha pe o mance will be g ea e
when he i occu s a a highe le el (+ & +) o implemen a ion o he p ac ices han a a lowe le el
(- & -). Howe e , when he implemen a ion le el o one o he p ac ices is kep low, i is
ope a ionally be e o keep he o he low ins ead o ha ing a mis i (- & + o + & -). This las
op ion would mean a highe (i.e. op imal) pe o mance han a mis i bu no he highes expec ed
pe o mance.
Thus, he model may be suppo ed i i can be demons a ed ha -in a s a e o disequilib ium- plan s
using an MS p ac ice se ha is i ed o (o coincides wi h) a TM p ac ice se achie e highe
pe o mance, while plan s wi h he MS se mis i ed o he TM se p esen lowe pe o mances.
In o he espec s, acco ding o he esul s ob ained by O ega e al. (2008b), in which a deg ee o
cong uency/selec ion i was ound be ween he same MS and TM p ac ice se s conside ed below, i
can be an icipa ed ha condi ions o disequilib ium ha would allow he ma ching i o measu e
signi ican di e ences in pe o mance do no exis . This does no mean ha di e ences in
pe o mance be ween bo h plan g oups (High Pe o me s/Wo ld Class and S anda d Pe o me s)
do no exis in eal e ms o ha he e is no in e ela ionship be ween he MP se s, bu a he ha an
adap a ion i migh exis due o possible simila e o s made o implemen he MPs in bo h g oups
(O ega, 2009).
The e o e, aking he abo e in o accoun and assuming ha he e a e no mis i condi ions (whe e
each alue o MS canno be assumed o be op imal o a ce ain alue o TM), he ollowing
hypo heses a e o mula ed:
H1: The e is no ma ching i be ween implemen a ion le els o MS and TM p ac ice se s
H2: E en i he e is no in e ac ion, highe implemen a ion le els o MS and TM a e ound in
HPM
4. METHODOLOGY
4.1. Da a collec ion
The p oposals men ioned in he p e ious sec ions we e es ed by means o a su ey in plan s om
he au o supplie sec o . The su ey was conduc ed in en coun ies ac oss No h Ame ica, Eu ope
9
and Asia wi hin he amewo k o he in e na ional High Pe o mance Manu ac u ing (HPM)
p ojec .
Fo each uni o analysis ( he plan ), he di e en scales o measu emen s and objec i e ques ions
we e a anged in a o al o 12 ques ionnai es di ec ed a 12 di e en posi ions wi hin he company.
The ques ionnai es we e e u ned om a o al o 21 in o man s om di e en manage ial le els.
Many o he scales we e included in a leas wo di e en ques ionnai es, wi h he aim o
iangula ing in o ma ion by making compa isons be ween he di e en g oups o in e iewees ( o
example be ween manage s and plan wo ke s and supe iso s) and likewise o minimising he
a iabili y esul ing om he di e ences be ween indi iduals, hus ob aining a highe deg ee o
eliabili y. The i ems ha ela e o each scale we e ea anged wi hin each ques ionnai e, wi h he
idea ha i should no be ob ious which i em belonged o which scale o e en which scales we e
being used. Once he ques ions and scales we e de ined by he in e na ional HPM p ojec , hey we e
included in he ques ionnai es.
The ques ionnai es had been widely es ed o eliabili y and alidi y. Ne e heless, du ing his
s udy, he o iginal ques ionnai es we e he objec o e iew in each na ional con ex o ake in o
accoun po en ial con ex ual in luences. The ques ionnai es con ained a ound one housand i ems,
dis ibu ed o e almos wo housand ques ions.
The p ocess o su eys applied o he plan s in his sample is explained as ollows. Fi s ly,
plan s o a leas 100 employees om a s a i ied sampling we e asked o ake pa . Up o 60% o
he plan s con ac ed in all coun ies submi ed da a o he s udy. The inal sample consis ed o 90
plan s wi h an a e age size o 867 wo ke s.
4.2. Resea ch a iables and measu emen
This s udy conside s and de ines ope a ional pe o mance, MS and TM wi h some o he cons uc s
om he HPM p ojec . The ocus is on he compe i i e implica ions om ela ionships be ween
p ac ice clus e s o bo h MS and TM and ope a ional pe o mance dimensions, and pa icula ly on
he impac o he link be ween bo h clus e s on pe o mance.
As p oduc ion plan s do no con ol inancial measu es o pe o mance di ec ly, his s udy will
ocus on he pe o mance measu es ha a e con olled a plan le el, such as cos , quali y, deli e y
and lexibili y (see Hayes and Wheelw igh , 1984; Ro h and Mille , 1992; Ke oki i and Sch oede ,
2004), which a e he basic objec i es o he p oduc ion unc ion (Skinne , 1969; Fe dows and De
Meye , 1990; Mille and Ro h, 1994; Hu chison and Das, 2007). This pape will conside he
ollowing compe i i e pe o mance dimensions (Sch oede and Flynn, 2001): uni cos o
manu ac u ing; con o mance o p oduc o speci ica ions; on- ime deli e y; as deli e y; lexibili y
o p oduc mix; lexibili y o p oduc olume. These dimensions ep esen di e en scales o he
abo e men ioned pe o mance measu es.
Wi h ega d o Manu ac u ing S a egy, Ba es e al. (2001) explain ha MS de e mines how he
p oduc ion a ea suppo s he gene al objec i es o he company h ough he app op ia e design and
use o p oduc ion esou ces and capaci ies (Ro h and Mille , 1990; De Toni e al., 1992). In his
suppo , i is essen ial o ensu e he alignmen o MS wi h bo h ma ke ing s a egy and business
s a egy (Sch oede and Flynn, 2001). In o he espec s, he e a e clea signs ha manu ac u ing
s a egies play a undamen al ole in he assessmen o new echnologies (Ba es e al., 1995;
P e o ius and We , 2000), since an analysis o app op ia e echnology can elimina e many isks and
also because wo ld-class echnology is a key ac o in global compe i i eness. In o he ega ds,
aking he classic concep ion de ined in s a egy li e a u e ha dis inguishes be ween p ocesses and
con en (e.g. Swamidass and Newell, 1987; Wei e al., 2000; Dangayach and Deshmukh, 2001), i
can be said ha he o mal s a egic planning p ocess is key o he o mula ion o manu ac u ing
s a egy. In his s udy, he ollowing MS manage ial p ac ices a e included (Ba es e al., 1995; 2001;
Sun and Hong, 2002): an icipa ion o new echnologies, o mal s a egic planning, and he
manu ac u ing-business s a egy linkage.
16
Thus, bo h subg oup analysis me hods show signs o a posi i e ela ionship be ween he wo
manu ac u ing p ac ice a eas and pe o mance, despi e he ac ha he deg ee o which hey a e
implemen ed and pe o mance a e signi ican ly simila in bo h high and s anda d pe o me plan
g oups. Fu he mo e, small non-signi ican di e ences ound be ween bo h plan g oups con i m
ha he HP plan s ha e a sligh ly g ea e di e en ial o implemen a ion le el in he wo p ac ice
se s, MS and TM, which may indica e ha HPs can mo e easily implemen he i o bo h se s
allowing hem o ocus on o he a eas o he plan . This migh indica e ha he di e ence in MS
and TM implemen a ion le els be ween high and s anda d pe o me s lies in e iciency a he han
e ec i eness: imp o ed compe i i eness leads o a educ ion in e o o makes he implemen a ion
o manu ac u ing p ac ices ou ine.
Hence, al hough combina ions o high MS-TM implemen a ions le els seem o ha e
signi ican ly he same pe o mance as he lowe implemen a ion le els, esul s show ha he way
MS and TM in e ac is mo e impo an o explaining he design/implemen a ion le els o bo h
p ac ices se s. Thus, om a p ac ical and conc e e poin -o - iew, au o supplie plan s will be able
o ha e a mo e de ailed unde s anding o he kind o in e ela ionship analysed and o he way o
apply MS and TM o all o hei plan s: beyond he ma ching in e ac ion i , his pape seems o
show ha he e is an associa ion be ween MS and TM and ha any s a e o mis i would lead o
di icul ies o su i al o o a es uc u ing o he plan in a compe i i e en i onmen (i.e. a na u al
selec ion e sion o con ingency heo y).
As in any empi ical esea ch s udy, esul s and conclusions should be in e p e ed wi h cau ion
due o he limi a ions o he echniques and cons uc s employed. On he one hand, he e a e some
me hodological p oblems wi h he de ia ion sco es me hod. Fi s ly, he de ia ion sco es me hod
measu es indisc imina ely and pu s ac ual de ia ions oge he wi h measu emen and speci ica ion
e o s in p edic ing an MP a iable (see Dewa and We bel, 1979). Secondly, his app oach hinges
on an unspeci ied (medium) le el o selec ion: selec ion o ces need o be s ong enough o ma k
ou he baseline. When hese o ces a e no so s ong, pe o mance di e ences be ween su i ing
o ganisa ions a e oo small o be de ec ed. As s a ed abo e, his migh be wha has occu ed he e.
Howe e , co ela ion and ANOVA subg oups p o ide g ea e de ail han de ia ion sco e.
Fu he mo e, showing a i line, whe e he e a e simila implemen a ion le els o bo h p ac ices,
may pose a ques ion: why should a plan in his case change i s le el o ei he o he a iables,
especially when his means addi ional esou ces? This lea es he op ion o emodel he i line as a
he e o-pe o mance line (i.e. mul iplica i e in e ac ion), so ha i s a y in hei pe o mance
e ec s, p o iding an oppo uni y o u he esea ch. In pa icula , i could be es ed i i s a highe
le els o ei he p edic o p oduce highe pe o mances han i s a lowe le els. Thus, i i we e
ound ha pe o mance inc eases as plan s mo e along he i line, plan s will be mo i a ed o mo e
along he i line by in es ing in highe le els o ei he p edic o .
Di e en esul s could be ound in o he sec o s, whe e he ela ionship be ween MS and TM is
ulne able o s a egic and echnological changes which could lead o mis i s be ween hem. These
cases a e beyond he objec i es o his pape and p o ide an oppo uni y o u he esea ch.
Fu he mo e, as his esea ch ela es o he au o supplie sec o , i means ha he esul s may
enjoy a high in e en ial capaci y o he popula ion analysed. Thus, he simila i y be ween high and
s anda d pe o me s may come om he au o supplie indus ial cha ac e is ics, whe e he possible
compe i i e si ua ion may ha e changed MS and TM om an o de winne o an o de quali ie .
Such a ela ionship could be a mus a he han p o ide a compe i i e ad an age; i any hing i
migh help o achie e compe i i e pa i y. One possible explana ion o his is ha bo h ypes o
plan s may al eady ha e bo h TM and MS embedded in hei decision making p ocess ou ine.
Hence, bo h ypes o plan s may no ha e o de o e as much e o o he implemen a ion o he wo
MPs. Di e en esul s could be ound in o he sec o s, whe e he ela ionship be ween MS and TM
is ulne able o s a egic and echnological changes ha could lead o mis i s be ween hem. These
cases a e beyond he objec i es o his pape and p o ide an oppo uni y o u he esea ch.

17
Finally, a second possible explana ion o hese esul s is ha TM and MS measu es in his s udy
demons a e e o s by managemen o implemen hem, bu do no show he quali y o hei
implemen a ion.
Consequen ly, u u e analysis is ecommended in o he sec o s o u he es his
in e ela ionship. This esea ch also lea es IT dimensions aside o u u e esea ch as IT- ela ed
p ac ices we e ou side he scope o his pape . Fu he mo e, o he MS and TM dimensions and o he
ac o s may in luence ope a ional pe o mance. This pape was no in ended o conduc a s udy o
hese ac o s.
These limi a ions p o ide an oppo uni y o u u e esea ch using possible na u al ex ensions o
he bi a ia e i pe spec i e. One o hese is he sys emic pe spec i e, which allows a b oade
holis ic iew o he plan s.
Acknowledgemen : This s udy is pa o he Spanish Minis y o Educa ion and Science
Na ional P og amme o Indus ial Design (DPI-2006-05531 and DPI 2009-11148) and he Jun a de
Andalucía (Spain) PAIDI (Plan Andaluz de In es igación, Desa ollo e Inno ación) Excellence
P ojec s (P08-SEJ-03841).
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20
Figu e 1. In e ac ion i
(Adap ed om Ge din & G e e, 2004)
Figu e 2. In e ac ion i : Low le el TM
(Adap ed om Ge din & G e e, 2004)
Figu e 3. In e ac ion i : High le el TM
(Adap ed om Ge din & G e e, 2004)
21
Figu e 4. MP1 le el pe o mance a di e en MP2 implemen a ion le els (ma ching)
(Adap ed om Chenhall and Mo is, 1986)
MS
le el
+
Mis i
Lowe
pe o mance
Fi
The highes
pe o mance
-
Fi
Highe
pe o mance
Mis i
Lowe
pe o mance
-
+
TM le el
Figu e 5. Ma ching Fi
(Adap ed om Venka aman, 1989)