Product and Process Characteristics, Advanced Manufacturing Initiatives, and Supply Chain Management Initiatives: Complementarities and Fit-Performance Consequences

33 Pages Posted: 31 Jul 2006

See all articles by Yuhchang Hwang

Yuhchang Hwang

Arizona State University (ASU) - School of Accountancy; China Europe International Business School

Johnny Rungtusanatham

University of Minnesota - Twin Cities - Carlson School of Management

Buck Pei

Arizona State University (ASU) - School of Accountancy

Date Written: March 2006

Abstract

We test two hypotheses reflecting answers to the following questions: (1) Do manufacturing firms adopt advanced manufacturing initiatives and supply chain management initiatives in a complementary manner, consistent with a given set of product and process characteristics? and (2) If the adoptions of various advanced manufacturing initiatives and various supply chain management initiatives do represent complementary choices, in light of a given set of product and process characteristics, what performance consequences can be expected? The two hypotheses are derived based on the logic of complementarities from economics, the structural contingency perspective in organization theory, and the concept of "FIT" from strategic management and are empirically examined with secondary data from durable goods manufacturers. Results from applying the method of simultaneous equations and regression analyses indicate that manufacturing firms appear to make adoption decisions with respect to advanced manufacturing initiatives and supply chain management initiatives in a complementary manner and that the complementary nature of these choices (i.e., "FIT") improves manufacturing performance. Change decisions should, therefore, not be made in isolation without considering impact on "FIT" and performance. The overall empirical approach, moreover, demonstrates a "systems approach" to defining "FIT" and examining its implications.

Keywords: Supply chain management, Complementary, Contingency theory

Suggested Citation

Hwang, Yuhchang and Rungtusanatham, Johnny and Pei, Buck, Product and Process Characteristics, Advanced Manufacturing Initiatives, and Supply Chain Management Initiatives: Complementarities and Fit-Performance Consequences (March 2006). AAA 2007 Management Accounting Section (MAS) Meeting. Available at SSRN: https://ssrn.com/abstract=921130 or http://dx.doi.org/10.2139/ssrn.921130

Yuhchang Hwang (Contact Author)

Arizona State University (ASU) - School of Accountancy ( email )

Tempe, AZ 85287
United States

China Europe International Business School ( email )

Shanghai-Hongfeng Road
Shanghai 201206
Shanghai 201206
China

Johnny Rungtusanatham

University of Minnesota - Twin Cities - Carlson School of Management ( email )

University of Minnesota
Minneapolis, MN 55455

Buck Pei

Arizona State University (ASU) - School of Accountancy ( email )

Tempe, AZ 85287
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
370
Abstract Views
3,244
rank
86,862
PlumX Metrics