THE DYNAMICS OF STRATEGY AND MANUFACTURING TECHNOLOGY RELATIONSHIP - A PROCESS FRAMEWORK

This paper proposes a framework that explains the causal role of flexi ble automation technology in business strategy formulation. By describ ing a firm's technology as an evolving competency system due to comput er integration of tools and an external change in industry technology, the framework portrays it as an independent and strategic variable. B y elaborating the foundations of strategy as both environmental and in ternal to a firm, the framework suggests that strategies can be delibe rately planned based upon changes in manufacturing competencies or cha nges in the external environment. The emergent view of strategy is at the same time recognized. The paper offers an illustrative typology th at can be used to examine whether different technologies are associate d with different strategic orientations.