Congruency fit: beyond performance in the auto supplier industry

Abstract

The effects of manufacturing strategy (MS) and technology (T) on performance have been studied separately, but few studies have examined the relationship between MS and T practices clusters that improve effectiveness when implemented jointly, and even then they do not consider possible congruency between the two. This paper develops a congruency (selection) model to test for any interconnection between said clusters, without addressing causation or their combined effect on performance. The implicit outcome is that the plant will achieve a desirable effectiveness level. Through a wide-ranging survey of auto supplier plants, two approaches are considered: 1) grouping both clusters in pairs (canonical correlation analysis); and 2) a more general selection view version, with practices from both clusters related multidimensionally and subordinated by bivariate analysis (regression) to test for any congruent pattern. Both methods find a congruent relationship between manufacturing strategy and technology practice clusters, although the second provides greater detail.