| This research is focussed on learning more about the effective utilization of technology in manufacturing firms. We propose that the design of the task environment and the management of the work force are key issues in effectively using any technology. We start by first developing a concise definition of technology, as described by five attributes of automation level, functionality, interconnection, sophistication, and scale. We further suggest that the technological system is three dimensional---the technology itself, the task dimension, and the social dimension. We test the proposition that the effective use of technology depends on its management through the task and social dimensions. In particular, the influence of automation and functionality technology attributes on process outcomes such as cost, quality and flexibility is examined. The role played by different management levers from the task and social dimensions in moderating this relationship is examined.;Two diverse technologies relevant to the manufacturing function were examined in this study. These were Computer Aided Design (CAD) and Flexible Manufacturing Technology (FMT). The influence of management levers was explored through the constructs of formalization, centralization, use of teams, extent of training, and equity of incentives.;A survey methodology was used to collect data from a cross section of the vehicular industry in the USA. A response rate of 25% for CAD and 10% for FMT was attained, yielding 143 and 47 responses respectively. Rigorous analysis of the data was performed to establish construct validity using Churchill's methodology. Regression analysis was then used to examine the base relationships between technology automation and functionality and performance, as well as the moderating and mediating relationships of various management levers examined.;Research findings suggest that the levels of technology automation and functionality significantly affect process outcomes in terms of quality and flexibility. Formalization and training were found to mediate the relationship between technology and performance for CAD systems, while team use negatively influenced this relationship. Equity of incentives had little overall effect. Finally, this research provided support for the theory that effective management of the process should vary with the type and attributes of technology being used. |
