Relating strategy and structure to flexible automation: A test of fit and performance implications

Relating strategy and structure to flexible automation: A test of fit and performance implications This study analyzed various strategy and structure choices to determine their fit relationship with flexible automation (FA). 1Using the moderator hypothesis, we proposed that the more strategy and structure choices complemented FA's competences, the higher would be the performance impact of FA. Data from 87 FA users indicate that quality and flexibility strategies, described as complementary to FA's strengths, interact positively with FA. Low cost strategy, described as conflicting with FA, interacts negatively. Organic structure, viewed as complementary to FA, has only main effects whereas a mechanistic structure interacts negatively. At the manufacturing level, skill diversity and team approaches, considered as complementary to FA, interact positively. While a subgroup analysis of high‐low performers lends additional support to these relationships, analysis of industry subgroups indicates that some relationships are industry specific. We discuss the implications of these findings for research and practice. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategic Management Journal Wiley

Relating strategy and structure to flexible automation: A test of fit and performance implications

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Publisher
Wiley
Copyright
Copyright © 1993 John Wiley & Sons, Ltd.
ISSN
0143-2095
eISSN
1097-0266
DOI
10.1002/smj.4250140704
Publisher site
See Article on Publisher Site

Abstract

This study analyzed various strategy and structure choices to determine their fit relationship with flexible automation (FA). 1Using the moderator hypothesis, we proposed that the more strategy and structure choices complemented FA's competences, the higher would be the performance impact of FA. Data from 87 FA users indicate that quality and flexibility strategies, described as complementary to FA's strengths, interact positively with FA. Low cost strategy, described as conflicting with FA, interacts negatively. Organic structure, viewed as complementary to FA, has only main effects whereas a mechanistic structure interacts negatively. At the manufacturing level, skill diversity and team approaches, considered as complementary to FA, interact positively. While a subgroup analysis of high‐low performers lends additional support to these relationships, analysis of industry subgroups indicates that some relationships are industry specific. We discuss the implications of these findings for research and practice.

Journal

Strategic Management JournalWiley

Published: Oct 1, 1993

References

  • Measuring organizational performance in the absence of objective measures: The case of the privately‐held firm and conglomerate business unit
    Dess, Dess; Robinson, Robinson
  • A dynamic perspective on the impact of process innovation upon competitive strategies
    Schroeder, Schroeder

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