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An exploratory study of the relationship between advanced manufacturing technology and organizational structure

Posted on:1989-04-26Degree:Ph.DType:Thesis
University:The Pennsylvania State UniversityCandidate:Yoon, Se JoonFull Text:PDF
GTID:2479390017956267Subject:Management
Abstract/Summary:
The purpose of this study was to examine the relationship between advanced manufacturing technology (AMT) and organizational structure. After arguing that classic conceptions of organizational technology are outdated for representing recent developments in manufacturing technology, the study proposes a conceptual framework by which organizational measures of AMT utilization can be developed. In the framework, two forms of AMT are identified--computerization and computer integration. As these two forms of technology can vary across organizations in terms of the extent to which they are used and the degree of advancement, usage and sophistication dimensions were imposed on each form of AMT, producing three constructs of AMT utilization.;Hypotheses deduced from the existing literature on AMT and the technology-structure relationship in general were tested with the data collected from 185 Pennsylvania manufacturing establishments in six metal-working industries. The following structural dimensions were examined: (1) vertical differentiation, (2) horizontal differentiation, (3) centralization of decision-making authority, (4) formalization, (5) span of control, and (6) several categories of labor inputs. The study also included the following control variables: organizational size, batch size, environmental uncertainty, unionization, and dependence.;The data was analyzed by using covariance structure analysis, logistic regression, and partial correlational analysis. To assess the construct validity of the AMT measures, a confirmatory factor analysis was performed and the results indicated that the reliability and validity of the instrument are appropriate.;On the whole, the major findings of this research suggest that the AMT variables are significant factors in explaining either system-level or subunit-level organizational structure. Specifically, AMT tended to decentralize decision-making authority and to formalize organizational structure. Utilization of AMT in the technical core also resulted in a narrower span of control for first-line supervisors and more professionalization of employees.;When the sample was divided into low- and high-performing groups, the data indicated strongly that AMT imposes a fixed set of structural requirements that manufacturing organizations may have to follow if inefficiencies in plant operations are not to be incurred. The study concludes by suggesting a synthesis of some of the major results.
Keywords/Search Tags:AMT, Organizational, Manufacturing technology, Relationship
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