The effect of manufacturing strategies on financial performance

Abstract

Purpose - Companies must use their resources effectively and productively if they are to compete in an increasingly competitive globalized economy. Effective performance measurement can support this competitiveness. To be able to do this, companies must know the factors that influence their performance and manage these factors in an effective manner. This study seeks to investigate the effect of manufacturing strategies of manufacturing companies on their financial performance and also the effect of firm size on the impact of manufacturing strategies. Design/methodology/approach - A total of 200 manufacturing companies that are registered under the Chamber of Commerce in Gebze, Turkey were selected and their managers interviewed. A total of 102 questionnaires were returned out of 200. Regression analyses were performed using the results of the survey. Findings - It was found, that an increase in the quality and cost/flexibility increased financial performance. However, the rate of delivery did not have any statistical influence on the financial performance. On the basis of the analysis done on the firm size, the last finding is that the effect of the quality and cost flexibility on financial performance is higher for large companies compared with SMEs. Originality/value - The paper identifies the manufacturing strategies that significantly influence the financial performance of manufacturing companies and the effect of firm size on the effect of these strategies.