Is digital transformation equally attractive to all manufacturers? Contextualizing the operational and customer benefits of smart manufacturing
International Journal of Physical Distribution & Logistics Management
ISSN: 0960-0035
Article publication date: 3 February 2023
Issue publication date: 29 June 2023
Abstract
Purpose
The implementation of Smart Manufacturing (SM) is deemed a key enabler in the enhancement of manufacturing competitiveness and performance. Nevertheless, SM's repercussion on consumer perceptions and the contextualization of SM's performance-enhancement effects remain undetermined and have yet to be clarified. This study analyzes the effect of SM on operational and customer performance. Moreover, this study explores how these relationships change depending on a firm's geography of production (i.e. national/local vs transnational operations) and the relational arrangement adopted (i.e. service-oriented vs transaction-oriented manufacturers).
Design/methodology/approach
This research surveys 351 Spanish manufacturing firms operating in an SM environment. The theoretical framework comprises a Multiple-Indicators Multiple-Causes (MIMIC) model and is tested using a Generalized Structural Equations Model.
Findings
The results obtained substantiate the positive effect of SM implementation on both of the performance measures analyzed (i.e. operational and customer focused). Moreover, the study reveals that while geography of production moderates the effect on a firm's operational performance, relational arrangement also does so in terms of customer performance.
Originality/value
This research clearly differentiates the benefits of SM depending on business context. In this regard, transnational production firms tend to gain in operational performance while service-oriented manufacturers gain in customer performance.
Keywords
Acknowledgements
This research has been supported by Governments of Spain and Andalusia (Research Project A-SEJ-196-UGR20).
Citation
Opazo-Basáez, M., Vendrell-Herrero, F., Bustinza, O.F., Vaillant, Y. and Marić, J. (2023), "Is digital transformation equally attractive to all manufacturers? Contextualizing the operational and customer benefits of smart manufacturing", International Journal of Physical Distribution & Logistics Management, Vol. 53 No. 4, pp. 489-511. https://doi.org/10.1108/IJPDLM-12-2021-0538
Publisher
:Emerald Publishing Limited
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