Adoption complexity and economies of scope for new process technology in manufacturing

Abstract

In a study of 39 domestic, durable goods plants, justifications for purchase of new process technology varied from the simple, single-goal approach to the complex, multiple-objective strategy. This variety contributes to a larger construct of adoption complexity, which was found to be a function of flexible manufacturing systems (FMS) (vs. cellular) purchase choice and plant size in a significant path model. Adoption complexity, in turn, significantly influences intrafirm personnel flows for implementation (e.g., mobility and job rotation). Flexible outcomes are not automatic with FMS purchase, however. Part family variety was significantly higher in larger plants and part variety was significantly promoted by personnel flows. Suggestions for further research and policy implications are discussed.