Strategic implications of manufacturing performance comparisons for newly industrialising countries

The manufacturing strategies and practices in a number of newly industrialising countries (NICs) are studied. The IMSS data for four Latin American industrialising countries, referred to as Group 1, are analysed, comparing these with two benchmarks, which represent more advanced manufacturing situations in well established industrialised countries. Comparing results indicated similarities for Group 1 with the two benchmarks, on simultaneously aiming at all their competitive goals. The study also proved a mismatch in their emphasis on the goals and the level of the objectives achieved in this regard. Links for this mismatch were searched for in various areas including human resource and technological aspects. Results also highlighted serious shortcomings for Group 1 in process technology criteria as compared with the two benchmarks. Comparison results with regard to human resources as well as planning and control aspects are also discussed in the paper. Based on this study, it has been concluded that environmental features have to be thoroughly analysed before any manufacturing strategy is developed for the firms in NICs. Further, continual interactions between manufacturing strategies for these firms with their environmental features have to be included in their strategy formulation process.