The Impact of Coordination of Business Strategy and Manufacturing Strategy on Organizational Performance; _ACase Study of Safa Industrial Group

Document Type : Research Article (Original Article)

Authors

1 MSc in Industrial Management, Faculty of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran.

2 Associate Professor, Faculty of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran.

Abstract

Purpose - This paper addresses examining the impact of coordination of Business Strategy & Manufacturing Strategy on Organizational Performance.
Design/Methodology/Approach - The research is based on a quantitative approach using a questionnaire survey and personal interviews from Safa Industrial Group operated in Steel industry. The identified constructs have been utilized to test a hypothesized model using a structural equation model (SEM) technique.
Findings -The results of this research show that firms should pay attention to the relationship between business strategy & manufacturing strategy for obtaining higher performance. First, , it's better, in a firm with cost-leadership strategy to focus on cost variable in manufacturing strategy. But it seems thatseems that it's not a competitive advantage to choose delivery factor and spend many organizational resources for attaining this factor. Second, it's better in a firm with differentiation strategy to choose quality as its manufacturing strategy. They also can focus on delivery to achieve higher performance. Also, unexpectedly we find a non-significant relationship between differentiation and flexibility factor.
Practical/Managerial implications - Managers and strategists should notice that one of the important aspects of strategy implementation is to translate to functional strategies. So, manufacturing strategy (one of the most important functional strategies) add some details to BS implementation. Therefore, it is necessary to identify them, so, lack of this information makes some losses that they aren't recognizable clearly.
 Innovation/Values - these study completes previous researches in strategic role of manufacturing through analyzing its effect on organizational performance. Many researchers suggested to survey on the relationship between business strategy & manufacturing strategy in detail; in this respect, the paper fills an important gap in the literature.

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History

  • Receive Date: 05 February 2017
  • Revise Date: 24 April 2021
  • Accept Date: 05 February 2017

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