An integrated approach to explain the manufacturing function's contribution to business performance

Purpose – Prior research into the manufacturing function's contribution to business performance demonstrates two seemingly incompatible approaches: strategic alignment or the identification of best practices. In the former, practices are useful only if they are consistent with the strategy to be implemented; in the latter, better performance derives from certain practices, regardless of the strategic context. The purpose of this paper is to propose a theoretical framework to integrate these approaches according to two types of manufacturing alignment, external and internal, such that organizational performance depends on their interaction. Design/methodology/approach – The framework was tested over the information provided on a questionnaire by 148 Spanish companies in three industrial sectors: industrial and commercial machinery, electronic and other electrical equipment, and transportation equipment. Findings – The level of internal alignment depends on the manufacturing practices; some facilitate alignment under any competitive circumstances, whereas others only do so for specific competitive priorities. Originality/value – This study reinforces the idea that alignment between manufacturing capabilities and business strategy is fundamental, but it also recognizes some best practices that facilitate alignment in any circumstances. Therefore, it demonstrates that both, the approach based on strategic alignment and that based on the existence of best practices, can be combined to fully explain the potential of the manufacturing function.