Abstract

http://ssrn.com/abstract=145128
 


 



World Class Manufacturing Practices and Profitability: A Causal Analysis


Surendra P. Agrawal


University of Memphis

Adam S. Maiga


School of Accounting - Florida International University



Abstract:     
The performance impact of advanced manufacturing has received considerable attention in recent years. In this research, we define advanced manufacturing under the umbrella of world class manufacturing (WCM) and investigate whether there is causal relationship between the degree of WCM implementation and profitability. We collected a data set from 127 strategic business units (SBUs); six constructs of degree of WCM (degree of JIT implementation, TQC, state of technology, capacity utilization, and developmental activities, and competitive factors) and one construct of profitability were obtained, each reflected from a number of observable variables. The data were further purified and analyzed using linear structural relations (model). The results show strong positive impact of four WCM constructs on profitability; however, we do not find evidence of the impact of capacity utilization on profitability. We do not test for the impact of competitive factors construct on profitability because the indicators of this construct failed to correlate. We explain our findings and give recommendations for further research.

JEL Classification: M40, M11

working papers series


Not Available For Download

Date posted: January 7, 1999  

Suggested Citation

Agrawal, Surendra P. and Maiga, Adam S., World Class Manufacturing Practices and Profitability: A Causal Analysis. Available at SSRN: http://ssrn.com/abstract=145128

Contact Information

Surendra P. Agrawal (Contact Author)
University of Memphis ( email )
Fogelman College of Business & Economics
Memphis, TN 38152
United States
901-678-2446 (Phone)
901-678-4282 (Fax)
Adam S. Maiga
School of Accounting - Florida International University ( email )
Miami, FL 33199
United States
Feedback to SSRN


Paper statistics
Abstract Views: 1,238

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.250 seconds