Analysis of manufacturing strategy in developing countries

Abstract

Purpose – The purpose of this paper is to formulate the manufacturing strategy in a developing country with particular reference to Nigeria in sub-Saharan African country. Design/methodology/approach – Using survey methodology and the partial least squares – structural equation modeling technique, The authors find that in addition to the four basic environmental factors – business cost, labor availability, competitive hostility and environmental dynamism, both government policies and the adopted manufacturing practices have significant effects on the manufacturing strategic priorities. Findings – Among other findings, the environmental factors of government policies and the type of manufacturing practices adopted have significant effects on manufacturing strategy. Research limitations/implications – Further studies should explicitly look into the effect of the adopted manufacturing strategy on company performance. Possibly, a case study research might be considered to establish this relationship. Practical implications – As manufacturing firms continue to experience greater competition, especially from China, and given the technological advancement in manufacturing, the business environment facing Nigerian manufacturing companies is likely to become more dynamic, complex, diverse and even hostile. Under such a turbulent climate, the configuration and effective deployment of manufacturing strategies is imperative to achieving superior business performance. Social implications – A more effective strategy will make companies more competitive in the market place, thus creating employment in a sector that has witnessed declining growth in employment. Originality/value – The linkage between environmental factors and manufacturing strategy has been studied widely. However, this study reveals the role of government policies and manufacturing practices in formulating manufacturing strategy in a developing country context.

Fostering Sustainable Development: A Corporate Social Responsibility Approach

“…The current situation has further led to scholars and researchers agitation for the government to diversify into other sectors of the economy to put an end to the mono-economy created by the oil and gas industry (Izuchukwu, 2011). This is consistent with the International Monetary Fund (IMF) assertion that Nigeria must diversify into other sectors such as agriculture and manufacturing using public investments and market reforms (Sola & Joachim, 2016;Ehie & Muogboh, 2016). This was perceived as necessary to reduce the Nigeria economy's dependency on the oil and gas sector and the negative impacts of the sector.…”

Production Challenges in Least Developed Countries

“…In summary, by conducting a literature research, we identified in total 97 production challenges in developing countries. These are aggregated from the literature sources and are partly found in related studies [5,16,106]. Case studies of independent products and countries show the actuality of production-related influences in least developed countries.…”

Production Strategy Development: Simulation of Dependencies Using Recurrent Fuzzy Systems

“…Strategies in production include strategic and operational components, and aim to minimize cost and time as well as to provide optimal quality and flexibility [7]. These goals are also valid for companies planning production sites in Africa [3]. Research on production strategy development is divided into process-oriented and structure-oriented approaches [7].…”

“…There is always a trade-off between cost, time and quality but also between subordinated production configuration decisions [4]. The right trade-off decision is essential for the achievement of competitive advantage [6], which also applies to African countries [3].…”

“…Presently, new and unsaturated markets can be found above all in Africa. However, many African countries strive for local added value by means of tariff and non-tariff trade barriers [2,3]. At the same time, the inhibition threshold for SME to open new locations in these countries is high.…”