A longitudinal study of the impact of market requirements focus on manufacturing performance

This paper examines the longitudinal relationship between market requirements focus and manufacturing performance in a sample of automotive supplier plants. Statistical analysis indicates that, overall, an increase in market requirements focus from 1995 to 1999 was associated with an increase in manufacturing performance over the same time period, while a decrease in focus was associated with decreasing performance. Furthermore, plant manager interviews suggest that plant-level involvement and firm resource commitment may serve to leverage focus improvement efforts, or moderate the negative effects of decreasing focus.