Business Commons^™

Evaluating The Impact Of Manufacturing Extension Services On Establishment Performance, Clifford A. Lipscomb, Jan Youtie, Philip Shapira, Sanjay K. Arora, Andy Krause

Philip Shapira

Do Foreign Companies Pay Higher Wages Than Their Local Counterparts In Malaysian Manufacturing?, David Lim

Prof. David Lim

This paper shows that foreign companies pay higher wages than their local counterparts in Malaysian manufacturing. Step-wise regression analysis shows that this is due to two factors. The first, and perhaps the more important, is the greater capital intensity of the production processes used by foreign companies. The second is their tendency to pay wages that they consider, or that are considered to be, commensurate with the wages that they pay in their home countries. This may be called the demonstration effect of wage remuneration in less developed countries.

The Effect Of Language Differences And National Culture On Operational Process Compliance, John V. Gray, Brett Massimino

Brett Massimino

With increasing frequency, firms are locating their operations in disparate countries with distinct national cultures and languages. This study develops and empirically tests hypotheses relating an operation's process compliance performance to (1) the presence of a language difference between the location of the operation and that of headquarters and (2) the national culture of the location of the operation and that of headquarters. Employing an international sample of pharmaceutical manufacturing plants located primarily in Western nations, the analysis reveals that a language difference between the location of a plant and the firm's headquarters is consistently related to decreased process compliance …

Measuring Manufacturing: How The Computer And Semiconductor Industries Affect The Numbers And Perceptions, Susan N. Houseman, Timothy J. Bartik, Timothy J. Sturgeon

Susan N. Houseman

Growth in U.S. manufacturing’s real value-added has exceeded that of aggregate GDP, except during recessions, leading many to conclude that the sector is healthy and that the 30 percent decline in manufacturing employment since 2000 is largely the consequence of automation. The robust growth in real manufacturing GDP, however, is driven by one industry segment: computers and electronic products. In most of manufacturing, real GDP growth has been weak or negative and productivity growth modest. The extraordinary real GDP growth in computer-related industries reflects prices for computers and semiconductors that, when adjusted for product quality improvements, are falling rapidly. Productivity …

Measuring Manufacturing: How The Computer And Semiconductor Industries Affect The Numbers And Perceptions, Susan N. Houseman, Timothy J. Bartik, Timothy J. Sturgeon

Timothy J. Bartik

Growth in U.S. manufacturing’s real value-added has exceeded that of aggregate GDP, except during recessions, leading many to conclude that the sector is healthy and that the 30 percent decline in manufacturing employment since 2000 is largely the consequence of automation. The robust growth in real manufacturing GDP, however, is driven by one industry segment: computers and electronic products. In most of manufacturing, real GDP growth has been weak or negative and productivity growth modest. The extraordinary real GDP growth in computer-related industries reflects prices for computers and semiconductors that, when adjusted for product quality improvements, are falling rapidly. Productivity …

The Manufacturing Contribution To Innovation, Arnoud De Meyer

Arnoud DE MEYER

The description of the contribution of manufacturing to the innovation process is often limited to the task of providing the necessary information to enable the development function to create a design which is easy to manufacture, and to be instrumental in the fast ramp-up of the production process. Though these are important tasks, it is argued in this paper that there is a third aspect of manufacturing’s contribution to innovation, namely the creation of a manufacturing system which is favorable to product innovation. This goes far beyond the design of an appropriate production process, but requires the creation of a …

How To Arrive At Computer Integrated Manufacturing: A 3-Year Survey, Arnoud De Meyer

Arnoud DE MEYER

The large majority of modern production companies have at their disposal a multitude of computer systems. The immediate challenge for these companies consists of integrating these computer systems and databases. How will one arrive at this integration? On the basis of a questionnaire administered in 1985, 1986 and 1987 among a group of large European manufacturers, one comes to the conclusion that this integration is one of the immediate priorities for this group of companies. They do not intend to implement turnkey systems. but instead will integrate the different databases and computer systems gradually. One can see emerging islands of …

Trade Liberalisation And Manufacturing Wage Premiums: Evidence From Thailand, Kankesu Jayanthakumaran, Piyapong Sangkaew, Martin O'Brien

Martin O'Brien

This paper investigates trade related industrial wage premiums. The procedure involves (1) estimating industrial wage premiums and (2) linking those estimated wage premiums to trade related variables. Results reveal that (1) in addition to workers' characteristics, industry characteristics where workers are employed were important in determining the wages for workers, (2) falling output tariffs resulted in increased wage premiums, and (3) an increase in intermediate imports exerted a strong positive influence on wage premiums. Linked employer and employee micro data may provide further insights which are currently not available.

Factors Affecting The Technical Inefficiency Of Thai Manufacturing And Exporting Small And Medium Sized Enterprises: A Stochastic Frontier Analysis (Sfa), Yot Amornkitvikai, Charles Harvie, Teerawat Charoenrat

Charles Harvie

This study employs a stochastic frontier analysis (SFA) and technical inefficiency effects model to predict the technical efficiency of 3,168 Thai manufacturing and exporting SMEs, analyze their returns to scale and key factors impacting on their technical efficiency. Analysis of cross-sectional data from a 2007 census of Thai manufacturing SMEs indicates that their average technical efficiency is approximately 69.72 percent, signifying a moderate level of technical inefficiency which is reducing potential output. With respect to each group of manufacturing and exporting SMEs, SMEs exporting to East Asia have a level of technical efficiency of 0.7081, followed by SMEs exporting to …

Factors Affecting The Export Participation And Performance Of Thai Manufacturing Small And Medium Sized Enterprises (Smes), Yot Amornkitvikai, Charles Harvie, Teerawat Charoenrat

Charles Harvie

This paper employed the 2007 Thai Industrial Census to empirically examine the effects of firm-specific and industry factors on a firm’s decision to export and the export performance of 65,111 Thai manufacturing SMEs which are classified into eight submanufacturing groups. Six econometric models are indentified to capture linear and nonlinear effects of firm-specific factors as well as to analyze each industry effect for Thai manufacturing SMEs. Four limited dependent variable models (i.e., the probit model, the logit model, the linear probability model, and the Tobit model) are used to study the factors affecting a firm’s export decision and its export …

Thai Manufacturing Small And Medium Sized Enterprise Technical Efficiency: Evidence From Firm-Level Industrial Census Data, Teerawat Charoenrat, Charles Harvie, Yot Amornkitvikai

Charles Harvie

Thai manufacturing small and medium sized enterprises (SMEs) face intense competition in domestic and foreign markets. Given their importance to the economic development of the country it is important to have a clear understanding of their readiness to face the rigors of international competition, including the barriers and specific problems that they face. This study uses a stochastic frontier analysis (SFA) and technical inefficiency effects model to analyze the technical efficiency of Thai manufacturing SMEs and key factors impacting upon it. Analysis of cross-sectional data from a 2007 census of Thai manufacturing SMEs indicates that their weighted average technical efficiency …

How Do Vietnamese Smes Perform? Technical Efficiency Of Smes In The Manufacturing Sector And Its Sub-Sectors, Cong Luyen Viet Le, Charles Harvie

Charles Harvie

This paper evaluates the technical efficiency performance of Vietnamese manufacturing small and medium enterprises (SMEs) over the period 2002 to 2007. Using firm level data from three surveys in 2002, 2005 and 2007 with a total of 5,204 observations of domestic non-state manufacturing SMEs the paper assesses the technical efficiency level of SMEs for the aggregate manufacturing sector and separately for nine subsectors including: (i) Food and Beverages; (ii) Textiles, Garments and Footwear; (iii) Electrical and Electronic Equipment (iv) Wood and Furniture Products; (v) Chemical, Rubber and Plastic Products; (vi) Paper, Printing and Publishing; (vii) Metal Products; (viii) Non-metallic Products; …

Three Plants, Three Futures, Lowell Turner

Lowell Turner

To spread teamwork and cooperation, managers need to reform themselves—especially their attitudes about workers. At NUMMI, management has provided a system of work and rewards that has earned the loyalty of most employees and local union leaders.

Nummi – Japanische Produktionskonzepte In Den Usa, Lowell Turner

Lowell Turner

[Excerpt] NUMMI, die Produktionsstätte des Joint-Venture von General Motors und Toyota, hat Modellcharakter für die gesamte US-Automobilindustrie erlangt und gilt mittlerweile als Paradebeispiel fur eine erfolgreiche Reorganisation der Arbeit. Das »Geheimnis« von NUMMI (New United Motor Manufacturing Inc.) liegt - kurz gefaβt - in der Übertragung von japanischen Produktionskonzepten mit entsprechend sozialpartnerschaftlichen Beziehungen zwischen Arbeitnehmern und Management, Teamarbeit, hoher Arbeitsintensität und groβerer Verantwortung der Beschäftigten für ihren Arbeitsbereich in eine gewerkschaftlich organisierte amerikanische Automontagestätte - mit dramatischen Ergebnissen hinsichtlich Produktivität und Produktqualität. Kein Wunder, daβ amerikanische Automobil-Manager - nicht nur bei GM, sondern auch bei Ford und Chrysler - darauf …

The Transformation Of Industrial Relations In Eastern Germany, Ulrich Jürgens, Larissa Klinzing, Lowell Turner

Lowell Turner

Citing case studies based on interviews they conducted in 1991 and 1992 with labor representatives and managers at six eastern German manufacturing firms, the authors argue that the future could hold either vigor and growth or stagnation and permanent second-class status for the economy and labor movement in eastern Germany, depending largely on actor strategy and choice. The rapid spread of privatization and open markets is tending to undermine unions' influence, on the one hand; but on the other hand, institutional transfer from former West Germany (especially of codetermination law and centralized, regional-level collective bargaining) is giving unions and works …

Changing Manufacturing Practices: An Appraisal Of The Processual Approach, Patrick M. Dawson

Patrick Dawson

There has been a longstanding interest in human factors and the processes of change in manufacturing organizations. This paper focuses attention on the establishment and contribution of a processual perspective to understanding change. A history of the processual approach is outlined and some of the main defining elements and ongoing developments are appraised. Field data drawn from a study of cellular work arrangements at a mirror manufacturing plant is used to highlight the interlocking and overlapping dynamics between substance, context, and politics. In advocating the benefits of a processual perspective, it is argued that during the uptake of cellular manufacturing …

Regional Industrial Structure And Agglomeration Economies: An Analysis Of Productivity In Three Manufacturing Industries., Joshua Drucker, Edward Feser

Joshua Drucker

Using Customer Profitability Information To Drive The Bottom Line, Mark E. Pickering

Mark E Pickering

This article utilises a case study of a textile manufacturer and distributor to demonstrate the use of customer profitability analysis to improve company profitability.