The Relationship between Technological Capability and Manufacturing Performance
Nurazwa Ahmad1, Halim Mad Lazim2, Alina Shamsuddin3, Eta Wahab4, Noor Aslinda Abu Seman5
1Nurazwa Ahmad, Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, Malaysia.
2Halim Mad Lazim, School of Technology Management and Logistics, Universiti Utara Malaysia, Malaysia.
3Alina Shamsuddin, Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, Malaysia.
4Eta Wahab, Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, Malaysia.
5Noor Aslinda Abu Seman, Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, Malaysia.
Manuscript received on 25 March 2019 | Revised Manuscript received on 04 April 2019 | Manuscript Published on 27 April 2019 | PP: 432-438 | Volume-7 Issue-6S2 April 2019 | Retrieval Number: F10520476S219/2019©BEIESP
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Technological capability plays an important role in achieving competitive advantages. It also increases performance of firms, industries, and as well as for the countries. Its’ potential as competitive weapon has been recognized to the industry. Manufacturers are striving to outperform the competitors. They are not only competing on the profit made but also struggling to perform a high level operational performance. Traditionally, manufacturers’ performance were measured based on the accounting management system. However, the focus had shifted from solely emphasizing on financial measures to the specific multidimensional operational priorities. Hence, the purpose of this study is to investigate the relationship between two dimensions of technological capability (i.e. acquiring and upgrading) and four dimensions of manufacturing performance (i.e. quality, cost, delivery and flexibility). Stratified random sampling was employed and 302 questionnaires were distributed to the respondents ranging from small to large manufacturing firms in Malaysia. Pearson correlation analysis was applied to test the hypothesis. The study result shows that the relationship between technological capability and manufacturing performance is significant and positive. This study proved there is a connection between the variables. Further investigation is required to understand the impact of technological capability on manufacturing performance and to understand deeper the influences of differences by size of firms and industry characteristics.
Keywords: Technological Capability, Manufacturing Performance, Resource-Based View, Manufacturing Industry.
Scope of the Article: Manufacturing Processes