Enabling the strategic development of SMEs through advanced manufacturing systems : A configurational perspective

Purpose – In order to deepen knowledge and further build theory on the use of advanced manufacturing systems (AMS) in SMEs, the present research seeks to explore the following questions: are the AMS used by SMEs aligned with their network, product and market development strategies? And does the alignment of AMS contribute to the successful outcome of these strategies, that is, to the business performance of manufacturing SMEs? Design/methodology/approach – A survey of 248 Canadian manufacturers was used to collect data that were analyzed through cluster analysis and analysis of variance. Findings – Three alignment patterns of strategic development were identified and named local SMEs, transition SMEs, and world‐class SMEs. World‐class firms were found to clearly outperform local firms in terms of growth and profitability whereas transition SMEs did not perform significantly better or worse than the other two groups. Research limitations/implications – The nature of the sample imposes care in generalizing the results of the study. Co‐alignment constitutes a valid theoretical foundation on which to further investigate the fundamental technology management problem for manufacturing SMEs, namely how these firms can achieve value from ever‐increasing investments in AMS. Practical implications – When shifts in the business environment require strategic choices or provide strategic opportunities for development in terms of product innovation, market expansion or network extension, the resulting changes must be inter‐linked and assessed systemically with the SMEs' assimilation and integration of AMS. Originality/value – Viewing AMS from a configurational perspective has provided a deeper understanding of the extent to which SMEs co‐align their use of manufacturing technology with their development strategies in order to achieve greater business performance.