ON THE APPLICABILITY OF ANALYTICAL TECHNIQUES FOR THE SELECTION OF AMTS IN SMALL-MEDIUM SIZED FIRMS

The appraisal and selection of investments in advanced manufacturing t echnologies (AMTs) have received a considerable attention in the liter ature over the last decade. In particular, many articles, after highli ghting the major shortcomings of traditional financial techniques when applied to the analysis of AMTs, have proposed alternative approaches , such as modified discounted cash flow techniques, strategic approach es and multi-attribute decision making methods. However, little attent ion has so far been paid to the applicability of such ''non-convention al'' approaches to small-medium sized firms (SMFs). This omission is p articular critical for two reasons. First, in most SMFs the decision t o adopt a given AMT is usually not supported by any technique, but is based rather on an ''act of faith'' in a new technology on the part of the entrepreneur. Second, there are some nonconventional techniques t hat seem particularly suitable for SR?Fs, in that they do not require major financial and strategic competencies or complex information and planning systems. This article seeks to increase the awareness of majo r nonconventional approaches among the owners and managers of SMFs and analyse critically the applicability of such approaches.