The role of manufacturing strategy in adapting to technological change

In an increasingly volatile and complex market environment, adaptability becomes essential to success. Basic to every manufacturing strategy is the identification of the technological means of meeting the firm’s competitive priorities. But what should guide the decision‐making process regarding which capabilities to develop, given rapid change and uncertain outcomes? Current manufacturing strategy models fall short of explaining how firms adapt to technological change and what is the source of that change. To meet this need, we can turn to evolutionary economics. The model presented in this paper holds that technologically embodied trade‐offs change the practices of technology users, creating momentum along existent trajectories. The paper reports evidence to support the model, gathered through a series of interviews with technology users, suppliers, and service providers. The findings indicate that manufacturing strategy forms a critical link not only in firms’ ability to adapt to change in their environments, but also in their ability to knowingly shape their futures.