Purpose -Many studies examine manufacturing performance along individual benchmarking dimensions. This study aims to develop a performance metric based on quality and output volume among other variables to assess a firm's manufacturing competitiveness in relation to its major rivals. Design/methodology/approach -The relative manufacturing performance is measured by data envelopment analysis (DEA). Several key manufacturing practices are examined for their impact on performance. They are research and development (R&D) commitment, time compression during production, and degree of outsourcing. The results are based on a sample from the world automobile industry. Findings -The empirical results suggest that a strong R&D commitment and ability to compress production time explain 37 percent of the manufacturing performance differences among major volume automobile producers. A nonlinear convex relationship is also found between outsourcing rate and manufacturing performance. The results show how the resulting performance ratings can then be utilized to assess the effects of a selected group of practices on manufacturing performance. Research limitations/implications -Since, there is a common basis for the sources of competitiveness among industries, the findings derived from this study are probably transportable to other industries. Also, the proposed metric and analytic approaches are generic and thus can be broadly applied to other industries. The results also suggest the need for further analysis of where improvements can be made within a given company, according to its firm-specific characteristics. Originality/value -Examines manufacturing performance along individual benchmarking dimensions and develops a performance metric based on quality and output volume to assess a firm's manufacturing competitiveness in relation to its major rivals.
Researchers have widely postulated that the adoption of information technology (IT) products enhances global competitiveness and production efficiency as successful technological innovation replaces and improves traditional inputs and modes of production. This study suggests that when IT products are traded across borders, IT investment in an economy has a positive influence on the productivity of its import partner country. We provide empirical evidence for the positive effect of global IT diffusion on productivity through international trading of IT products. The results show a positive effect of foreign IT transfer on the recipient country’s productivity. In addition, we find that the effect of transferred IT is only significant when the source country is an IT-intensive or hi-tech export country. The results and implications are robust, even controlling for other important factors such as openness, innovative capacity, and IT infrastructure in addition to the transferred IT. Finally, a panel cointegration test—a recently developed advanced econometric method—is used to address the common problems of spurious relations that arise in regressions with nonstationary time-series data.
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