Relationships between advanced manufacturing technologies, absorptive capacity, mass customization, time to market and financial and market performance

Abstract

Purpose The purpose of the paper is to empirically investigate the relationships between advanced manufacturing technology (AMT), absorptive capacity, mass customization (MC) capability, competitive advantage, and organizational performance measures. Design/methodology/approach Based on a literature review, a theoretical framework is derived. Structural equation modeling was chosen for the empirical analysis based on the focus of the research. Data collection was conducted from 232 Indian manufacturing managers. Findings The findings indicate that absorptive capacity has a positive impact on MC capability. Also, MC capability mediated the relationship between AMT and the financial and market performance. Furthermore, AMT positively impacted MC capability, and MC capability positively impacted both time to market and financial and market performance. AMT was not found to have a significant impact on financial and market performance. Originality/value The current study is meaningful and unique in that no study has investigated the linkages between AMT, absorptive capacity, MC capability and organization performance and competitive advantage measures in a unified context. Such investigations are important because the results will encourage managers to invest in developing these mechanisms, which in turn will influence firm’s ability to implement MC practices and yield benefits such as improved performance and competitive advantage.