Performance Returns from Aligning Front-End Technologies and Just-in-Time Practices: Empirical Findings from the Brazilian Manufacturing Industry

Abstract

Purpose-The integration of front-end technologies like automation, process simulation, and augmented reality with Just in Time (JIT) practices can yield unforeseen outcomes in manufacturing due to complex dynamics. This study examines the impact on this integration on the performance of manufacturing firms. Design/methodology/approach-To conduct our investigation, we developed and administered a survey questionnaire among 353 Brazilian manufacturing firms. We utilized a combination of factorial and regression analyses within our final sample, consisting of 262 manufacturing firms. Our objective was to examine the impact of the alignment between front-end technologies and JIT on the operational and economic performance of these manufacturing firms. We adopted complexity theory as our theoretical framework, which recognizes and accommodates the intrinsic unpredictability and uncertainty inherent in complex scenarios such as technology adoption and its interplay with firm culture. Findings-Our findings indicate that JIT influences the use of front-end technologies in both positive and negative directions. Regarding operational performance, JIT has a positive moderation effect on automation and a negative moderation effect on process simulation. Conversely, for economic performance, JIT positively moderates process simulation and negatively moderates automation. Originality-Our study advances complexity theory by elucidating the impacts of integrating front-end technologies with JIT practices within the unique scenario of the Brazilian manufacturing industry. Practical implications-We provide empirical evidence for managers to carefully assess the compatibility of technology adoption strategies with existing operational practices to maximize performance outcomes.

Keywords: Digital Technologies, Just-in-Time, Complexity Theory, Survey, Brazilian Manufacturing Industry