Int. J. Technology Management, Vol. 77, No. 4, 2018 187
Copyright © 2018 Inderscience Enterprises Ltd.
The impact of strategic orientations on development
of manufacturing strategy and firm’s performance
Uma Kumar
Sprott School of Business,
Carleton University,
1125 Colonel By Drive, Ottawa,
Ontario K1S 5B6, Canada
Email: uma.kumar@carleton.ca
Irfan Butt*
Faculty of Business Administration,
Lakehead University,
Thunder Bay, Ontario, Canada
Email: ibutt@lakeheadu.ca
*Corresponding author
Vinod Kumar
Sprott School of Business,
Carleton University,
1125 Colonel By Drive, Ottawa
Ontario K1S 5B6, Canada
Email: vinod.kumar@carleton.ca
Abstract: This study empirically tests a comprehensive set of strategic
orientations that influence the development of manufacturing strategy, and
examines manufacturing capability to show the impact of manufacturing
strategy on a firm’s financial and non-financial performance. The
manufacturing strategy is posited to be influenced by customer orientation,
competitor orientation, resource orientation, and innovation orientation. The
findings of this study are based on a sample of the top management of
194 manufacturing concerns from the Canadian technology sector. The analysis
using structural equal modelling informs that customer orientation impacts
quality and flexibility strategies while competitor orientation influences cost
and delivery strategies. Innovation strategy is impacted by innovation
orientation. Resource orientation did not significantly impact manufacturing
strategy. Quality strategy has the strongest influence on manufacturing
capability, followed by cost, innovation and flexibility strategies.
Manufacturing capability, in turn, influences both financial and non-financial
performance.
Keywords: manufacturing strategy; customer orientation; manufacturing
capability; competitor orientation; innovation orientation.