Business strategies and manufacturing decisions: An empirical examination of linkages

Abstract

Purpose

This paper seeks to investigate whether linkages, proposed by previous researchers, among business strategies and structural and infrastructural investment decisions of manufacturing are empirically supported.

Design/methodology/approach

A sample of 101 US manufacturing firms is classified into three groups based on their predominant business strategies. The classification is validated using analysis of variance (ANOVA) tests on the taxons and on the environment in which the firms operate. ANOVA tests on manufacturing investment decisions are then used to address the central question of the paper – whether the three business strategy groups differ in their emphasis on structural and infrastructural areas of manufacturing.

Findings

The three business strategy‐based groups of firms, labeled broad‐based competitors, differentiators, and price leaders, differ in their emphasis on several of the structural and infrastructural areas of manufacturing, thus supporting the contention of linkages among business strategy and manufacturing investment decisions.

Originality/value

The popular notion of linkages among business strategies and investments in structural and infrastructural areas of manufacturing is empirically tested.

Citation

Ward, P.T., McCreery, J.K. and Anand, G. (2007), "Business strategies and manufacturing decisions: An empirical examination of linkages", International Journal of Operations & Production Management, Vol. 27 No. 9, pp. 951-973. https://doi.org/10.1108/01443570710775810