This paper provides exploratory evidence on the cross-sectional associ
ation between process management techniques and two profit measures: r
eturn on assets and return on sales. Using a sample of firms in two in
dustries (automotive and computer) and four countries (Canada, Germany
, Japan, and the United States), we find that certain process manageme
nt techniques improve profitability while others have little effect on
financial performance; In particular, long-term partnerships with sup
pliers and customers are associated with higher performance in both in
dustries. The value of other techniques such as statistical process co
ntrol, process capability studies, and cycle time analysis, on the oth
er hand, appears to vary by industry, reflecting differences in the st
ages of the two industries' process management practices. Finally, com
puter organizations following an innovation-oriented strategy earned s
ignificantly higher accounting returns regardless of the process manag
ement techniques employed, suggesting that these techniques have only
a second-order effect on performance in this industry.