The Perception of the Strategic Role of Manufacturing amongst Operations Managers: An Empirical Study Based on a Newly Industrialized Economy

Abstract

Seeks to contribute to the empirical database on the progression of thinking with regards to the strategic role of manufacturing by reporting some results of a study on the manufacturing‐strategy thinking and practices amongst practising managers of operations based in a newly industrialized economy (NIE). In particular, highlights the finding that while almost all operations managers in the sample perceive that manufacturing can and should contribute to overall corporate strategy, their view of the role of manufacturing is that it should primarily be reactive vis‐à‐vis other functional areas; such a view is far from strategic. Operations managers in the survey agree that there are many ways to compete besides cost, but their main criterion for evaluating the manufacturing function is still cost and productivity. They seem to fail to recognize the existence of tradeoffs in the production system. They acknowledge the necessity to handle strategic issues, but still perceive infrastructural decisions as mere operational decisions. While the role of managers in NIEs is likely to be more cost focused rather than strategic in orientation, they need to be better and further exposed to the current concepts of manufacturing strategy thinking and development. In particular, a more proactive form of the strategic role of manufacturing could be pursued.

Citation

Hum, S. and Leow, L. (1992), "The Perception of the Strategic Role of Manufacturing amongst Operations Managers: An Empirical Study Based on a Newly Industrialized Economy", International Journal of Operations & Production Management, Vol. 12 No. 11, pp. 15-23. https://doi.org/10.1108/01443579210017457