Exploring the Link Between Strategy and Smart Manufacturing Adoption: A Study in the Automotive Industry

Although firms’ strategic positioning is recognized to be one key factor influencing technology adoption, there is limited understanding of the impact that competitive priorities have on firms’ adoption of Smart Manufacturing (SM) technologies. To fill this gap, this study builds on survey data from 288 firms operating as automotive suppliers to investigate how competitive emphasis relates to firms’ stage of SM adoption. Results show that progression is SM is associated with a growing strategic emphasis on simultaneously competing in terms of cost, quality and delivery. Findings also point that flexibility priority is a less stringent driver of SM adoption and progression among auto-motive suppliers. This study enriches SM literature that investigates antecedents of SM adoption. Findings offer valuable indications to manufacturing executives called to solve the fragmented adoption of SM in their upstream supply chain, by throwing light on strategies of firms that engage in SM.