The effects of changes in competition, technology and strategy on organizational performance in small and medium manufacturing companies

Abstract

Purpose

This study aims to examine how the relationship among competitive environment, manufacturing technology and organisational strategy affect organisational performance.

Design/methodology/approach

Using a contingency approach, this study investigates the changes in competitive environment, manufacturing technology and organisational strategy in small and medium Malaysian manufacturing companies. The data is collected using a mailed questionnaire survey of manufacturing companies in the Klang Valley.

Findings

Results of the study show that the majority of responding companies have recognised changes in their competitive business environment and advanced manufacturing technology, which have impacted on organisational strategic behaviour. Structural equation modelling shows positive relationships among competitive environment, manufacturing technology and organisational strategy, with a positive impact on performance.

Research limitations/implications

These outcomes provide useful insights into our knowledge of how organisational change has taken place in small and medium companies.

Practical implications

The study provides useful guidelines to small and medium sized companies facing changes to their business environment.

Originality/value

The study makes an incremental contribution to the existing organisational change literature for SMEs in developing countries.

Citation

Zainun Tuanmat, T. and Smith, M. (2011), "The effects of changes in competition, technology and strategy on organizational performance in small and medium manufacturing companies", Asian Review of Accounting, Vol. 19 No. 3, pp. 208-220. https://doi.org/10.1108/13217341111185137