Manufacturing strategies and financial performance - the effect of advanced information technology: CAD/CAM systems
Manufacturing strategies and financial performance – the effect of advanced information technology: CAD/CAM systems
Theodorou P., Florou G. Omega, February 2008, Vol. 36 No. 1, Start page: 107, No. of pages: 15
Purpose – to study the effect of information technology systems on a range of business strategies and their financial performance outcomes. Design/methodology/approach – draws on prior research to identify strategies based on cost, quality, flexibility, dependability and innovation,outlines how IT supports each of these strategies, but focuses on computer-aided design and manufacturing (CAD and CAM) systems, arguing that integrated CAD/CAM systems can support all the strategies. Refers to studies of the IT/performance relationship in several firms and countries, notes than none have looked at Greek companies, and conducts a questionnaire survey of 47 Greek firms known to use CAD/CAM systems. Clusters firms according to their prioritization of, and emphasis on, cost, quality, flexibility and innovation strategies, omits the dependability aspect, explains how a clustering algorithm was used to categorize firms according to their reported tactics, gives the variables used to classify tactics, and estimates the effect of IT on each cluster using a previously presented equation linking return-on-invested capital (ROIC) and the IT/strategy fit. Findings – confirms that, overall, IT has a positive impact on ROIC,impact being strongest in companies using middle-level cost strategies,high-level flexibility strategies and low-level innovation strategies, observing that CAD/CAM had little impact on ROIC in companies with either low- or high-level quality strategies. Research limitations/implications –concedes that ROIC is a static measure of performance. Originality/value –reinforces that IT systems should support, and be aligned to, corporate strategy.ISSN: 0305-0483Reference: 36BA479DOI:10.1016/j.omega.2005.10.005
Keywords: Computer aided design, Computer-aided manufacturing,Corporate strategy, Flexible manufacturing systems, Greece, Information systems,Management information systems, Management science
