Strategic implications of manufacturing performance comparisons for newly industrialising countries

Abstract

The manufacturing strategies and practices in a number of newly industrialising countries (NICs) are studied. The IMSS data for four Latin American industrialising countries, referred to as Group 1, are analysed, comparing these with two benchmarks, which represent more advanced manufacturing situations in well established industrialised countries. Comparing results indicated similarities for Group 1 with the two benchmarks, on simultaneously aiming at all their competitive goals. The study also proved a mismatch in their emphasis on the goals and the level of the objectives achieved in this regard. Links for this mismatch were searched for in various areas including human resource and technological aspects. Results also highlighted serious shortcomings for Group 1 in process technology criteria as compared with the two benchmarks. Comparison results with regard to human resources as well as planning and control aspects are also discussed in the paper. Based on this study, it has been concluded that environmental features have to be thoroughly analysed before any manufacturing strategy is developed for the firms in NICs. Further, continual interactions between manufacturing strategies for these firms with their environmental features have to be included in their strategy formulation process.

Sourcing from low‐cost countries

“…In fact, LCCs were ranked lower than developed countries in all areas of logistics performance evaluated by the World Bank, including efficiency of customs clearance process, transport and information technology infrastructure, ease and affordability of arranging international shipments, competence of logistics industry, ability to track and trace international shipments, domestic logistics costs, and timeliness of shipments (Arvis et al , 2007). Additional sources of process‐related issues can be attributed to less efficient managerial procedures, workforce training, and planning and quality control procedures of LCC manufacturing firms (Moattar Husseini and O'Brien, 2004; Millington et al , 2006; Zhou and Chuah, 2002).…”

Organizational changes in Chinese companies: a resource‐based view

“…Organizations operate in a local environment which includes specific economic, social and cultural contexts (House et al , 2004; Moattar‐Husseini and O'Brien, 2004). Also organizational changes are connected with institutional development (Alas and Vadi, 2006).…”

Manufacturing Strategies and Choices in Cultural Contexts

“…Although any fi rm operates in a local environment which includes specifi c economic, social and cultural contexts (Moattar-Husseini, O'Brien 2004) and there has been signifi cant body of operations management research (Frohlich 2002;Rungtusanatham et al 2003) there is still a lack of studies connecting culture and values with operations strategies and practices. The paper tries to explore how cultural dimensions are connected with manufacturing choices and patterns of responses.…”