Linking manufacturing strategy process and manufacturing performancethe role of formalized strategic planning, internal communication and leadership practices

Laburpena

It is generally accepted that manufacturing strategy is a competitive weapon, as it acts in support of the overall strategy direction of the global business. However, there is a dearth of researching on manufacturing strategy process, in particular, the linkage between manufacturing strategy formulation and manufacturing strategy implementation, in spite of being identified as the second pillar stone of manufacturing strategy. Therefore, this thesis aims to expand knowledge on manufacturing strategy process, exploring its implication on operational performance. A comprehensive approach was developed through three empirical studies addressing factors that may reinforce manufacturing strategy process and how it may influence several activities related to exploration and exploitation orientations. The first study examines manufacturing strategy process as a single activity. In particular, it focuses on the linkage between manufacturing strategy formalization and manufacturing strategy implementation, considering the potential moderating role of shop-floor communication. On the one hand, findings reveal that the existence of a formal strategic planning ensures manufacturing strategy implementation, as it offers support for strategic business objectives and the basis for trading off and selecting options. On the other hand, our finding shows the relevant role of feedback and instructive communication practices on manufacturing strategy process. They both help to convey strategy planning and goals to shop-floor operators, as well as to pass on information on the shop floor, leading to strategic embeddedness to adopt manufacturing strategy successfully and prompt adaptation to changes. The second study analyzes how several leadership practices used at the shop-floor level may exhibit or inhibit manufacturing strategy implementation, leading to higher or lower operational performance. The findings enhance the idea that the lack of managers’ skills (e.g., leadership) is one of the main failures in manufacturing strategy implementation. Our findings show that the use of non-coercive leadership practices mitigate the negative impact of centralized structure in manufacturing firms and improve operational performance. This limits the negatively effects on manufacturing strategy implementation due to problems in communication, employees’ participation and motivation. Nevertheless, the negative effects of coercive leadership practices on manufacturing strategy implementation results in negative influence on operational performance, as they foster organizational rigidity and contribute to expand a hostile work environment, which results in inhibiting internal communication and boosting employees’ turnover. The third study presents how manufacturing strategy formalization fosters exploitation orientation within manufacturing firms, identifying it as an antecedent of new technology anticipation. This research study also examines the implications of new technology anticipation on effective process implementation, which is stronger if manufacturing strategy formalization comes into play. New technology anticipation mitigates risks related to the adoption of new processes and manufacturing strategy formalization supports to exploit the existing resources and competences and, explore new ones in parallel. Additionally, it shows the importance of instructive communication as one of drivers to assimilate and exploit new technology anticipation. This thesis contributes to strategic and operations management fields thought providing valuable insights for academics, employers, practitioners and, even employees. Our findings highlight the positive link of manufacturing strategy formalization to manufacturing strategy implementation, and the added value of human resources, in particular, internal communication and leadership practices on manufacturing strategy process. This research enhances the understanding of how manufacturing strategy process is strengthened, and in what way it fosters organizational ambidexterity, conferring a competitive position upon manufacturing firms.