Manufacturing Automation, Strategic Alliance, Informataion Technology and Organisational Performance: Evidence from Indonesia

Abstract

This study reports the results of an empirical research investigating the relationships between Indonesian manufacturing organisations’ performance and: (a) adoption of the manufacturing automation; (b) engagement in the strategic alliance; and (c) managerial use of the information technology. The relationships between managerial use of the information technology and adoption of the manufacturing automation, and engagement in the strategic alliance are also investigated. A comprehensive review of the relevant literature reveals that previous researchers have investigated the relationship between manufacturing organisations’ performance and their adoption of manufacturing automation. However, although the extant literature suggests that manufacturers’ engagement in strategic alliance and managerial use of information technology could play an important role in the above relationship, the relevant previous studies did not consider the role of these variables. Moreover, since mid 90s many of the manufacturing organisations in Indonesia have been adopting manufacturing automation for improving performance. But, none of the previous studies investigating the manufacturing automation-performance relationship (let alone the role of engagement in strategic alliance and managerial use of information technology) was carried out in Indonesia.