The effect of manufacturing strategies on financial performance

Abstract

PurposeCompanies must use their resources effectively and productively if they are to compete in an increasingly competitive globalized economy. Effective performance measurement can support this competitiveness. To be able to do this, companies must know the factors that influence their performance and manage these factors in an effective manner. This study seeks to investigate the effect of manufacturing strategies of manufacturing companies on their financial performance and also the effect of firm size on the impact of manufacturing strategies.Design/methodology/approachA total of 200 manufacturing companies that are registered under the Chamber of Commerce in Gebze, Turkey were selected and their managers interviewed. A total of 102 questionnaires were returned out of 200. Regression analyses were performed using the results of the survey.FindingsIt was found, that an increase in the quality and cost/flexibility increased financial performance. However, the rate of delivery did not have any statistical influence on the financial performance. On the basis of the analysis done on the firm size, the last finding is that the effect of the quality and cost flexibility on financial performance is higher for large companies compared with SMEs.Originality/valueThe paper identifies the manufacturing strategies that significantly influence the financial performance of manufacturing companies and the effect of firm size on the effect of these strategies.

The impact of product positioning strategy, manufacturing strategy and their co-alignment on firm's performance

“…Thus, our results fully corroborate the findings of Swamidass and Newell (1987) and Swink, Narasimhan and Kim (2005) and, partially, the findings of Amoako-Gyampah and Acquaah (2008), Kazan, Ozer and Cetin (2006), and Ward and Durray (2000). Industrial rivalry, the control variable, not tested by previous studies, was found to have a negative impact on financial performance.…”

“…However, quality in our study only influences non-financial performance. Kazan, Ozer and Cetin (2006) examined the effect of manufacturing strategies on the financial performance of 102 firms in Turkey. In line with the findings of our study, cost/flexibility and quality were found to impact financial performance.…”

“…There is a possibility that interaction of two positioning or two manufacturing strategies would lead to higher organizational performance. For example, Kazan et al (2006) had cost and flexibility load on one factor during factor analysis and it had a positive impact on the financial performance of the firm.…”

When to measure productivity: lessons from manufacturing and supplier‐selection strategies

“…Therefore, the circumstances to be determined by this research will be based on strategies on manufacturing and supplier selection. In this study, these strategies indicate key performance objectives for an organization to achieve successful results (Chan, 2005;Kazan et al, 2006) Figure 2.…”

Práticas de avaliação de desempenho organizacional em pequenas e médias empresas: investigação em uma empresa de porte médio do ramo moveleiro

“…Entre os estudos que focalizam a ADO em pequenas e médias empresas, citam-se as pesquisas de Murphy, Trailer, Hill (1996) ;Jarvis, Curran, Kitching, et al (2000); Smart;Bourne (2001); Laitinen (2002); Garengo, Biazzo, Bititci (2005) ;Haber, Reichel (2005); Ahmad, Berg, Simons (2006); Gumbus, Lussier (2006); Kazan, Ozer, Cetin (2006); Sharma, Bhagwat (2006); Sousa, Aspinwall, Rodrigues (2006); ; Garengo, Nudurupati, Bititci (2007); Smith, Smith (2007) ;Carpinetti, Galdámez, Gerolamo (2008) ;Varma, Wadhwa, Deshmukh, (2008).…”