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The effect of manufacturing strategies on financial performance

Halim Kazan (Assistant Professor, at the School of Business Administration, Gebze Institute of Technology, Kocaeli, Turkey.)
Gökhan Özer (Associate Professor at the School of Business Administration, Gebze Institute of Technology, Kocaeli, Turkey.)
Ayşe Tansel Çetin (Research Assistant, at the School of Business Administration, Gebze Institute of Technology, Kocaeli, Turkey.)

Measuring Business Excellence

ISSN: 1368-3047

Article publication date: 1 January 2006

3748

Abstract

Purpose

Companies must use their resources effectively and productively if they are to compete in an increasingly competitive globalized economy. Effective performance measurement can support this competitiveness. To be able to do this, companies must know the factors that influence their performance and manage these factors in an effective manner. This study seeks to investigate the effect of manufacturing strategies of manufacturing companies on their financial performance and also the effect of firm size on the impact of manufacturing strategies.

Design/methodology/approach

A total of 200 manufacturing companies that are registered under the Chamber of Commerce in Gebze, Turkey were selected and their managers interviewed. A total of 102 questionnaires were returned out of 200. Regression analyses were performed using the results of the survey.

Findings

It was found, that an increase in the quality and cost/flexibility increased financial performance. However, the rate of delivery did not have any statistical influence on the financial performance. On the basis of the analysis done on the firm size, the last finding is that the effect of the quality and cost flexibility on financial performance is higher for large companies compared with SMEs.

Originality/value

The paper identifies the manufacturing strategies that significantly influence the financial performance of manufacturing companies and the effect of firm size on the effect of these strategies.

Keywords

Citation

Kazan, H., Özer, G. and Tansel Çetin, A. (2006), "The effect of manufacturing strategies on financial performance", Measuring Business Excellence, Vol. 10 No. 1, pp. 14-26. https://doi.org/10.1108/13683040610652186

Publisher

:

Emerald Group Publishing Limited

Copyright © 2006, Emerald Group Publishing Limited

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