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The impact of manufacturing and supply chain improvement initiatives: an empirical comparative analysis of make-to-order and make-to-stock firms

Olhager, Jan LU and Prajogo, Daniel (2012) In Omega: the International Journal of Management Science 40(2). p.159-165
Abstract
Manufacturing firms aim at improving both internal and external processes to improve the competitive advantage. Such initiatives include lean practices as well as supplier rationalization and integration. In this paper, we analyze these improvement initiatives and their impact on business performance. In particular, we explore potential differences between make-to-order (MTO) and make-to-stock (MTS) firms. We use data from 216 Australian manufacturing firms. We find a clear difference of improvement focus between MTO and MTS firms. MTO firms exhibit a significant impact of supplier integration on business performance, but not for lean practices and supplier rationalization. The situation is completely reversed for MTS firms, since they... (More)
Manufacturing firms aim at improving both internal and external processes to improve the competitive advantage. Such initiatives include lean practices as well as supplier rationalization and integration. In this paper, we analyze these improvement initiatives and their impact on business performance. In particular, we explore potential differences between make-to-order (MTO) and make-to-stock (MTS) firms. We use data from 216 Australian manufacturing firms. We find a clear difference of improvement focus between MTO and MTS firms. MTO firms exhibit a significant impact of supplier integration on business performance, but not for lean practices and supplier rationalization. The situation is completely reversed for MTS firms, since they have significant effects for internal lean practices and supplier rationalization, but not for logistics integration with supplier. The results show that the distinction between MTO and MTS firms is important when analyzing manufacturing and supply chain improvement initiatives. (Less)
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author
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Survey research, decoupling point, lean practices, logistics integration, supplier relationships, business performance.
in
Omega: the International Journal of Management Science
volume
40
issue
2
pages
159 - 165
publisher
Elsevier
external identifiers
  • scopus:79960642109
ISSN
0305-0483
DOI
10.1016/j.omega.2011.05.001
language
English
LU publication?
no
id
6ac2720d-a9f4-4fb9-9e30-519249b28425 (old id 3130420)
date added to LUP
2012-10-18 08:15:17
date last changed
2017-11-19 03:12:30
@article{6ac2720d-a9f4-4fb9-9e30-519249b28425,
  abstract     = {Manufacturing firms aim at improving both internal and external processes to improve the competitive advantage. Such initiatives include lean practices as well as supplier rationalization and integration. In this paper, we analyze these improvement initiatives and their impact on business performance. In particular, we explore potential differences between make-to-order (MTO) and make-to-stock (MTS) firms. We use data from 216 Australian manufacturing firms. We find a clear difference of improvement focus between MTO and MTS firms. MTO firms exhibit a significant impact of supplier integration on business performance, but not for lean practices and supplier rationalization. The situation is completely reversed for MTS firms, since they have significant effects for internal lean practices and supplier rationalization, but not for logistics integration with supplier. The results show that the distinction between MTO and MTS firms is important when analyzing manufacturing and supply chain improvement initiatives.},
  author       = {Olhager, Jan and Prajogo, Daniel},
  issn         = {0305-0483},
  keyword      = {Survey research,decoupling point,lean practices,logistics integration,supplier relationships,business performance.},
  language     = {eng},
  number       = {2},
  pages        = {159--165},
  publisher    = {Elsevier},
  series       = {Omega: the International Journal of Management Science},
  title        = {The impact of manufacturing and supply chain improvement initiatives: an empirical comparative analysis of make-to-order and make-to-stock firms},
  url          = {http://dx.doi.org/10.1016/j.omega.2011.05.001},
  volume       = {40},
  year         = {2012},
}