Relationship between manufacturing strategy and firm performance: the empirical study of Vietnamese manufacturing plants
Relationship between manufacturing strategy and firm performance: the empirical study of Vietnamese manufacturing plants

Summary/Abstract: The process of formulation and implementation of the firm’s strategy is closely linked to its performance. This article presents the results of an empirical research regarding the relationship between manufacturing strategy and performance of manufacturing plants in Vietnam. Data was collected from 25 plants as part of the High Performance Manufacturing (HPM) project and analysed by using statistical tools. The manufacturing companies are operating in three industries: transportation, electronics and machinery equiment. The respondents were mainly directors, vice directors, plant managers, upstream and downstream supply chain managers. The present research is aimed to test two hypotheses constructed. Hypothesis 1: Manufacturing strategy practices at the managerial level have a significant impact on firm performance. Hypothesis 2: Manufacturing strategy practices at the supervisory level have a significant impact on firm performance. Notable results were found regarding the relationship between manufacturing strategy and firm performance among Vietnamese plants. The results of analysis of variance (ANOVA) and regression analysis indicate the importance of management in formulating and implementing the manufacturing strategy with regard to firm performance, whereas supervision is less significant in terms of its influence on firm performance.

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