Decision Sciences Journal 30(4) Index


Decision Sciences Journal
Volume 30, Number 4
Fall 1999

 

Intermediate Performance Impacts of Advanced Manufacturing Technology Systems: An Empirical Investigation

Alan Brandyberry
Department of Finance and Management Information Sciences, School of Business and Economics, University of Minnesota, Duluth, MN 55812, abrandyb@d.umn.edu

Arun Rai
Electronic Commerce Institute, J. Mack Robinson College of Business, Georgia State University, Atlanta, GA 30303, arunrai@gsu.edu

Gregory P. White
Department of Management, College of Business and Administration, Southern Illinois University at Carbondale, Carbondale, IL 62901, ga2607@siu.edu

ABSTRACT. A large-scale random sample is used to empirically examine the relationships between implementation of Advanced Manufacturing Technology (AMT) and three organization-level measures that have historically been attributed to AMT, but not fully tested along the AMT spectrum: market-oriented flexibility of the production process, organizational integration of production processes, and administrative intensity of the organization. Results indicate that as an organization moves along the technology scale from stand-alone AMT (e.g., CNC machines) through functionally oriented AMT (FMS and CAM) toward CIM, not only do its production processes become more integrated with each other, but those processes become more integrated with other functional systems of the organization, and the quality and timeliness of production information increase. Furthermore, this relationship becomes stronger as companies increase their level of implementation for the latter two technologies. Conversely, market-oriented flexibility decreases and administrative intensity is not observed to change as companies move along the technology spectrum. Future research should examine how organizational redesign and implementation strategies that accompany AMT implementation can concomitantly enhance organizational integration of the production process and market-oriented flexibility.

Subject Areas: Administrative Efficiency, Advanced Manufacturing Technology, Flexibility, Integration, Performance Impacts, Statistics, Technology Adoption, and Technology Implementation.

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