The impact of strategic alignment and responsiveness to market on manufacturing firm's performance
Author(s)
Sardana, Deepak
Terziovski, Mile
Gupta, Narain
Griffith University Author(s)
Year published
2016
Metadata
Show full item recordAbstract
Drawing on dynamic capabilities theory and a sample based on the Indian manufacturing industry, we examine the influence of manufacturing operations’ functioning, strategic alignment and responsiveness to market need for customization and firm performance. A multi-variate regression method is applied on the factors identified using confirmatory factor analysis. Our findings indicate that operations’ strategic alignment to the firm's objectives is the single most key contributor to firm performance. The operations’ capability to respond to market need for customization also significantly contributes to firm performance. Plant ...
View more >Drawing on dynamic capabilities theory and a sample based on the Indian manufacturing industry, we examine the influence of manufacturing operations’ functioning, strategic alignment and responsiveness to market need for customization and firm performance. A multi-variate regression method is applied on the factors identified using confirmatory factor analysis. Our findings indicate that operations’ strategic alignment to the firm's objectives is the single most key contributor to firm performance. The operations’ capability to respond to market need for customization also significantly contributes to firm performance. Plant technology capability is also essential to respond effectively to market need for customization, and is positively and significantly related to firm performance. On the other hand, while delivery capability and cost control of the manufacturing operation are positively related to firm performance, they are not significant. Operations and marketing managers and firms’ policy makers should emphasize operations’ strategic alignment to firms’ performance objectives, and build dynamic operational capability to be responsive to changing market needs.
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View more >Drawing on dynamic capabilities theory and a sample based on the Indian manufacturing industry, we examine the influence of manufacturing operations’ functioning, strategic alignment and responsiveness to market need for customization and firm performance. A multi-variate regression method is applied on the factors identified using confirmatory factor analysis. Our findings indicate that operations’ strategic alignment to the firm's objectives is the single most key contributor to firm performance. The operations’ capability to respond to market need for customization also significantly contributes to firm performance. Plant technology capability is also essential to respond effectively to market need for customization, and is positively and significantly related to firm performance. On the other hand, while delivery capability and cost control of the manufacturing operation are positively related to firm performance, they are not significant. Operations and marketing managers and firms’ policy makers should emphasize operations’ strategic alignment to firms’ performance objectives, and build dynamic operational capability to be responsive to changing market needs.
View less >
Journal Title
International Journal of Production Economics
Volume
177
Subject
Marketing management (incl. strategy and customer relations)
Operational capability
Firm performance
Strategic alignment
Market responsiveness
Customization
India