EXPLORING THE RELATIONSHIP BETWEEN PRODUCTIVITY PROBLEMS AND TECHNOLOGY ADOPTION IN SMALL MANUFACTURING FIRMS

Small manufacturing companies are generally less sophisticated than large companies. Their decisions to adopt new manufacturing technologies are often based more on short-term operating realities than on long-term strategic plans. This research study conducted on 100 smaller manufacturing firms investigates how the process innovators in that group differ from the other firms in terms of the operating problems they face. The global picture of a process innovator which emerges from this study is that of a company with tighter capacity management, better process design, more qualified and better trained employees, a more flexible and more responsive manufacturing system, better quality, and a more harmonious labor relations climate than other companies.