Intrafirm mobility and manufacturing modernization

Abstract

In this article a general model of personnel flows and the innovation process is introduced. Part of this model is tested with data from domestic plant modernization projects. This model suggests that during the initiation phase of radical process innovation, the most likely type of personnel flow to be found is the interfirm movement of managers. During implementation, the model suggests that engineers move intrafirm. For the movement of manufacturing engineers the model was found to be strongly supported. More specifically, manufacturing engineers tend to be promoted during the implementation process which becomes a major mechanism for technology transfer at the plant and division level. Firms that experiment with new organization structures and policies are more likely to experience this engineering mobility during deployment of integrated, advanced manufacturing technology. Further, this mobility is significantly associated with greater uptime and higher inventory turns for the new manufacturing system. Finally, we found the impact of mobility on performance outcomes generally unaffected by controlling for organization structure (plant size) and corporate budget for these projects. This suggests that firms do proceed from being more flexible to being less flexible as initiation turns into implementation of significant throughput change. Suggestions for future research are discussed.