Performance returns from aligning front-end digital technologies and Just-in-Time practices: empirical findings from the Brazilian manufacturing industry
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Abstract
Purpose The integration of front-end technologies such as automation, process simulation and augmented reality with Just-in-Time (JIT) practices can yield unforeseen outcomes in manufacturing due to complex dynamics. This study examines this integration’s impact on manufacturing firms' performance.
Design/methodology/approach We design a survey questionnaire and distributed it among 353 Brazilian manufacturing firms to conduct our investigation. We utilize a combination of factorial and regression analyses with moderation within our final sample, composed of 262 manufacturing firms. Our goal is to examine the impact of aligning front-end technologies and JIT on the operational and economic performance of these manufacturing firms. We adopt complexity theory as our theoretical framework, recognizing and accommodating the intrinsic unpredictability and uncertainty inherent in complex scenarios such as technology adoption and its interplay with firm culture, adoption time and technology adoption resistance.
Findings Our findings indicate that JIT influences the use of front-end technologies both positively and negatively. Regarding operational performance, JIT has a positive moderation effect on automation and a negative moderation effect on process simulation. Conversely, for economic performance, JIT positively moderates process simulation and negatively moderates automation.
Practical implications We provide empirical evidence for managers to carefully assess the compatibility of technology adoption strategies with existing organizational culture and operational practices to maximize performance outcomes.
Originality/value Our study advances complexity theory by elucidating the impacts of integrating front-end digital technologies with JIT practices within the unique scenario of the Brazilian manufacturing industry. More specifically, our theoretical framework offers a new perspective on the unpredictable nature of performance outcomes regarding technology adoption in operations.