Research on the impact of manufacturing competence on manufacturing performance

The research on competitive priorities has been focused on the field of manufacturing strategy in the last 20 years. Based on the literature of manufacturing strategy competitive priorities (manufacturing competence), we develop a relationship model consists of time, cost, quality and innovation, and depict how these four dimensions of competitive priorities in combination affect the manufacturing performance. Moreover, we propose the hypothesis: in the good innovation environment, the four factors of TCQ&I model in the enterprise have the following relations: Quality seems more important than innovation, innovation seems more important than cost, cost seems more important than time. This paper regards the developed country as good innovation environment, namely the quality and innovation factors are to be essential to the entire manufacturing system in the developed countries. The innovation factor in developing countries has a lower position than in the developed country. This paper uses the data from the database of the International Manufacturing Strategy Survey (IMSS). The factor analysis, model fitting analysis and multiple regression analysis research methods are used. We also use the cluster analysis method to contrast the developing country with the developed country. The statistical analysis tool applied is the LISREL software. The results prove the validity of the hypothesis. This study concludes that the TCQ&I model, which includes innovation, is reasonable. The manufacturing in developed countries such as china must highlight the importance of the innovation. They should strengthen the self-innovation capacity and fulfill the quality management to construct the effective manufacturing competitive priority system in the enterprise. Meanwhile, they should also attach importance to the cooperation between developing countries.