The Impact of the Intensity Level of Computer‐based Technologies on Quality

Examines the impact of the intensity level of computer‐based technologies (CBTs) on quality. The intensity level of CBTs is empirically‐based. The main thrust of the intensity level of CBTs is fourfold. First, the technology must, intuitively, exist. Second, it must be integrated with other available technologies. Third, it must be utilized to a certain extent. Finally, it must have been used long enough to produce synergistic results. Determines whether there are differences in quality among firms with different intensity levels of CBTs. The analysis was based on data collected from 165 manufacturing firms in three industry groups in the USA. These are industrial machinery equipment, electronic and electric machinery equipment, and transport equipment. Descriptive statistics show the following: (1) the level of technology integration is low; (2) the level of programmable automation is also low; (3) most of the CBTs are used as stand‐alone technologies; and (4) most of the CBTs are used in the early stages of designing the product. The results also suggested that differences in quality exist among groups with different intensity levels of CBTs. These findings have many implications for both practitioners and academicians. For practitioners, the intensity level of CBTs, as operationalized here, can be used by manufacturing firms as a vehicle to benchmark their performance against that of their competitors. For academicians, introduces a new measure for operationalizing the intensity level of CBTs. Also discusses other implications.