The Impact of Competitive Intensity on Product-Process Matrix: An Empirical Study

The drastic changing of competitive environment make Product-Process Matrix (PPM), an important theoretical model connecting manufacturing with market strategy, is aroused into doubt. In this research, competitive factor is considered into the study of PPM. Based on the data from the International Manufacturing Strategy Survey in 2009 (IMSS 2009), Manufacturing enterprises are classified from their positions in the Product-Process Matrix. By comparing the manufacturing performance of each category of enterprises with different competitive intensities, the influences that competitive intensity has on traditional strategies fit is validated. The results show that enterprises fell within a wide scope around the diagonal of PPM. With different competitive intensities, enterprises located in the same position of the matrix achieved significantly different manufacturing performance.