Information Technology, Production Process Outsourcing, and Manufacturing Plant Performance.

Author List: Bardhan, Indranil R.; Whitaker, Jonathan; Mithas, Sunil;

Journal of Management Information Systems, 2006, Volume 23, Issue 2, Page 13-40.

What is the role of information technology (IT) in enabling the outsourcing of manufacturing plant production processes? Do plant strategies influence production outsourcing? Does production process outsourcing influence plant performance? This research addresses these questions by investigating the role of IT and plant strategies as antecedents of production outsourcing, and evaluating the impact of production outsourcing and IT investments on plant cost and quality. We develop a theoretical framework for the antecedents and performance outcomes of production outsourcing at the plant level. We validate this theoretical framework using cross-sectional survey data from U.S. manufacturing plants. Our analysis suggests that plants with greater IT investments are more likely to outsource their production processes, and that IT investments and production outsourcing are associated with lower plant cost of goods sold and higher product quality improvement. Our research provides an integrated model for studying the effects of IT and production outsourcing on plant performance.

Keywords: Manufacturing performance; Plant strategy; production process outsourcing

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List of Topics

#67	0.407	production manufacturing marketing information performance systems level impact plant model monitor does strategies 500 unit present fortune integrated sales plants
#116	0.150	research study influence effects literature theoretical use understanding theory using impact behavior insights examine influences mechanisms specifically context perspective findings
#271	0.134	technology investments investment information firm firms profitability value performance impact data higher evidence diversification industry payoff return findings decisions greater
#274	0.124	outsourcing transaction cost partnership information economics relationships outsource large-scale contracts specificity perspective decisions long-term develop requirements economic association factors hypotheses
#89	0.059	product products quality used characteristics examines role provide goods customization provides offer core sell key potential stronger insights design initial
#69	0.051	process business reengineering processes bpr redesign paper research suggests provide past improvements manage enable organizations regarding focal cycle creating issues