DEVELOPING TECHNOLOGICAL CAPABILITY THROUGH MANUFACTURING STRATEGY

Technological innovation represents an important mechanism whereby fir ms can respond to the challenges of the late 1990s environment. Withou t a coherent strategic framework within which to make technological ch oices, however, there is a risk that even heavy investments will fail to enhance organizational performance. This paper reviews the concept of manufacturing strategy as a mechanism for guiding the development o f process capability and presents a four-phase model for its developme nt, based on research and literary review. This model involves a syste matic planning process and a participative approach to implementation, but it also argues the need to consider the prevailing mind set of st rategic decision-makers. It is suggested that even well-crafted plans may fail because they address the wrong problems or deploy too limited a set of solutions. Generating momentum to ensure strategic plans are realized is not an automatic process, but involves motivation through leadership, customer focus, crisis or other drives. The paper conclud es with some examples that illustrate this model in practice.