Relationships among advanced manufacturing technology, innovation, export, and firm performance

Abstract

Purpose The purpose of this study is to find the relationships among advanced manufacturing technology (AMT), innovation, export and firm performance by using data obtained from 310 Turkish manufacturing firms. Design/methodology/approach A survey study was performed to obtain data from manufacturing firms. Multiple-item scales were adapted from the literature to conduct the survey in this study. Data were collected from five cities located in the Southeastern Anatolia Region in Turkey (Gaziantep, Adiyaman, Kilis, Diyarbakir and Sanliurfa). Structural equation modeling was utilized to investigate the relationships among AMT, innovation, export and firm performance in Turkish manufacturing firms operating in several industries. The direct and indirect relations between these variables are examined in the proposed conceptual model. In addition, the complex relations including in the proposed model are assessed in detail through the mediation analysis. Findings Six of the proposed ten hypotheses related to manufacturers are validated by the empirical evidence from manufacturing companies in Turkey. Significant findings obtained in this study include the following: there are strong positive associations between the use of AMT and innovation and between export and firm performance. In addition, innovation mediates the relationship between AMT and firm performance and between AMT and export. Finally, export mediates the relationship between AMT and firm performance and between innovation and firm performance. It is expected that the results obtained from this empirical analysis will help decision makers and managers to construct a good technology and production management strategy for manufacturing systems. Originality/value In this study, a novel conceptual model is proposed to examine the relationships among AMT, innovation, export and firm performance via the use of survey responses from 310 Turkish manufacturing firms. To the authors’ best knowledge, this is the first study that proposes such a conceptual model in the literature.