Advanced manufacturing technologies, manufacturing strategy, and economic performance: An empirical investigation

The purpose of this study was to examine the impact of Advanced Manufacturing Technologies, hereafter AMTs, on the manufacturing and economic performance. To achieve this goal, three main research activities took place. First, a definition to what constitutes AMTs was proposed. Secondly, a conceptual model that relates Advanced Manufacturing Technologies, manufacturing capabilities, and economic performance of the firm was developed. Thirdly, a technology assessment equation was introduced.;Research hypotheses were formulated based upon an extensive review of current literature on AMTs and the results of a pilot study. It was hypothesized that business units with higher levels of technology are more likely to outperform their counterparts on the dimensions of manufacturing capabilities as well as their economic performance. It was also hypothesized that business units with higher levels of technology are more likely than their counterparts to place more emphasis on the structural and infrastructural decisions of their manufacturing strategy.;Hypotheses were tested using data collected from one hundred and sixty-five business units. A Business unit, for the purpose of this study, is defined as an entire company, a division or a subsidiary, or a plant. Eighty-one business units were in SIC 35, Fifty-eight in SIC 36, and nineteen in SIC 37.;The data was analyzed by using analysis of variance and multiple comparisons. Cluster analysis was used to group business units which have similarities over AMT index. This index was generated from the technology assessment equation. Cluster analysis was once again used to group business units which have similarities over the dimensions of manufacturing capabilities.;Research instrument was highly reliable with a Cronbach alpha that ranges from.78 to.92. Factor analysis was used to assess the face validity of the dimensions of manufacturing capabilities. The four factors emerged were in general agreement with the current literature on AMTs.;The major findings of this study suggest that AMTs have significant impact on the four dimensions of manufacturing capabilities and some impact on a small number of economic variables. It was also revealed that firms with different levels of AMTs will exhibit different emphasis on the decisions areas of their manufacturing strategy. Results also showed that quality, flexibility, responsiveness, and cost are important dimensions of competitiveness in the three industry groups studied.