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Those who stayed loyal An empirical examination of New Zealand manufacturers surviving in a global market

Those who stayed loyal An empirical examination of New Zealand manufacturers surviving in a... Purpose – Despite the ability of small and medium enterprise (SME) to successfully outsource production to low‐cost labour markets, some SMEs continue to produce in the domestic market. A sharp decline in the number of New Zealand manufacturers of consumer goods has been observed in the last five years. This raises questions regarding the viability of a domestic manufacturing strategy in a global marketplace. The purpose of this paper is to explore the performance of New Zealand manufacturers who continue to pursue a domestic manufacturing strategy. Design/methodology/approach – The contextual background for the research is discussed first followed by the development of seven hypotheses. An overview of the methodology is presented before the results of statistical tests. A discussion of findings and implications precede concluding remarks. Practical implications – This reasearch suggests that SMEs need not succumb to pressures to shift manufacturing offshore in order to remain competitive in the local market. Findings – Findings suggest that company size, export strategy, and importance placed on non‐financial goals influence the viability of a domestic manufacturing strategy. Originality/value – This paper is unique in that it does not argue domestic manufacturing as an optimal strategy, rather it considers the viability of a domestic manufacturing strategy in the consumer goods market. Furthermore, the paper adds insight on manufacturing strategy when faced with a small domestic market. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Enterprising Communities: People and Places in the Global Economy Emerald Publishing

Those who stayed loyal An empirical examination of New Zealand manufacturers surviving in a global market

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Publisher
Emerald Publishing
Copyright
Copyright © 2010 Emerald Group Publishing Limited. All rights reserved.
ISSN
1750-6204
DOI
10.1108/17506201011086138
Publisher site
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Abstract

Purpose – Despite the ability of small and medium enterprise (SME) to successfully outsource production to low‐cost labour markets, some SMEs continue to produce in the domestic market. A sharp decline in the number of New Zealand manufacturers of consumer goods has been observed in the last five years. This raises questions regarding the viability of a domestic manufacturing strategy in a global marketplace. The purpose of this paper is to explore the performance of New Zealand manufacturers who continue to pursue a domestic manufacturing strategy. Design/methodology/approach – The contextual background for the research is discussed first followed by the development of seven hypotheses. An overview of the methodology is presented before the results of statistical tests. A discussion of findings and implications precede concluding remarks. Practical implications – This reasearch suggests that SMEs need not succumb to pressures to shift manufacturing offshore in order to remain competitive in the local market. Findings – Findings suggest that company size, export strategy, and importance placed on non‐financial goals influence the viability of a domestic manufacturing strategy. Originality/value – This paper is unique in that it does not argue domestic manufacturing as an optimal strategy, rather it considers the viability of a domestic manufacturing strategy in the consumer goods market. Furthermore, the paper adds insight on manufacturing strategy when faced with a small domestic market.

Journal

Journal of Enterprising Communities: People and Places in the Global Economy – Emerald Publishing

Published: Oct 19, 2010

Keywords: Manufacturing systems; Small to medium‐sized enterprises; Consumer goods; New Zealand; Outsourcing

References

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