Linking competitive priorities, smart manufacturing advancement and organizational microfoundations
International Journal of Operations & Production Management
ISSN: 0144-3577
Article publication date: 24 January 2023
Issue publication date: 25 August 2023
Abstract
Purpose
Smart Manufacturing (SM) lies at the core of Industry 4.0. Operations management research has investigated the determinants of SM advancement but there is still limited understanding of the linkages between SM and organizational factors and about whether both the technological and organizational subsystems for SM are guided by firms’ competitive priorities. To close these gaps, building on operations strategy theory, this paper aims to empirically test a model positing that competitive priorities drive SM advancement. The relation between competitive priorities and SM advancement is assumed to be mediated by organizational microfoundations.
Design/methodology/approach
Using data from a single respondent survey with 234 firms in the automotive component industry, structural equation modeling is adopted to test the model hypotheses. Relevant constructs are measured with reference to the lead plant for SM.
Findings
Findings highlight that SM advancement is driven by the need to simultaneously compete in terms of cost, quality and delivery, thus suggesting that manufacturers view SM as a mean to develop multiple manufacturing capabilities. Organizational microfoundations fully mediate the relation between competitive priorities and SM advancement.
Originality/value
Results have implications for SM research, as they provide an understanding of the strategic priorities of firms engaging in SM. Findings also bear relevance for manufacturing executives engaged in the SM transformation, as they provide quantitative evidence that shaping an adequate organizational environment is a prerequisite for SM advancement.
Keywords
Acknowledgements
Funding: The present study was partially supported by a grant by University of Catania PIA.CE.RI. 2020-2022 Linea 2 - Progetto interdipartimentale GOSPEL.
Citation
Arcidiacono, F., Ancarani, A., Di Mauro, C. and Schupp, F. (2023), "Linking competitive priorities, smart manufacturing advancement and organizational microfoundations", International Journal of Operations & Production Management, Vol. 43 No. 9, pp. 1387-1408. https://doi.org/10.1108/IJOPM-06-2022-0355
Publisher
:Emerald Publishing Limited
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