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.

Background and Frame of Reference Investments and changes in manufacturing have become more extensive and complex during the last few decades. This has implied that even minor changes in manufacturing can result in long-term consequences for the organisation. The complexity has also implied that more functions and individuals, both in staff functions and in the line hierarchy, have to be involved in the decisionmaking processes. Furthermore, increased responsibility and authority, as a part of the job characteristics, have become essential for retaining the personnel. These changes are partly connected, and it is therefore of interest to investigate the strategic and managerial implications of this trend. Manufacturing StrategiesThe theories of manufacturing strategy focus on analyses of business goals and strategies, the congruence of these with manufacturing goals and plans formulated and implemented in manufacturing. Hence, a manufacturing strategy should reflect goals and strategies of the business and enable the manufacturing function to contribute to the competitiveness of the company (Skinner, 1978;Hayes and Wheelwright, 1984). The implementation process of these goals and strategies is often described as a top-down process, but Hayes and Wheelwright see a need for an interactive (top-down -bottom-up) development of manufacturing strategy. They also state that it is through the actual decisions made that the manufacturing capability is determined. The decisions are made within the structural and infrastructural elements of manufacturing. These elements are considered by Hayes and Wheelwright as consisting of a set of decision categories (see Figure 1). Decisions made in these categories should be consistent and support the manufacturing goals, as well as overall goals and strategies of the organisation.This strategic view of manufacturing has proved to be a good basis for discussions within manufacturing companies . The implementation process of these goals and strategies is, however, poorly described in the literature. Swamidass and Newell (1987) mean that the manufacturing strategy literature lacks some of the essential ingredients that can stimulate empirical research. One reason is the lack of integration of relevant literature from several disciplines. Social factors, such as behaviour and psychological factors, have partly been neglected. The result has been a quite normative view of the planning process, where, at the most, the manufacturing manager is involved. His obligations are reduced to formulating the right goals for manufacturing, and to explaining consequences of the terms in manufacturing for the competitive ability, and making the "right decisions".

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Within the framework of the Swedish Manufacturing Strategy Project a panel study of 66 manufacturing business units has been made. These 66 companies participated in a questionnairebased study performed both in 1986 and in 1989. The results showed that the companies have tended to consolidate their positions in existing markets rather than put emphasis on efforts to enter new markets. The competitive means used to support this strategic direction are in 1989 even more biased towards high quality products, reliable deliveries and aspects of flexibility. The importance of low price as a competitive means has been dramatically reduced. This strategic emphasis has even more accentuated the concern for personnel issues within manufacturing. In order to create the competitive advantage depicted, great emphasis is put on decentralisation of the organisational structure at the plant level.