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Advisor(s)
Abstract(s)
Purpose – The purpose of this paper is to test whether complexity interacts with Sales and
Operations Planning (S&OP) practices by positively moderating the impact of S&OP practices on
manufacturing operational performance dimensions of quality, flexibility and delivery.
Design/methodology/approach – Three hypotheses are developed on the relationships between
S&OP practices, task complexity and process complexity and manufacturing operational
performance. Scales are validated with structural equation modelling. The hypotheses are tested
through a hierarchical regression analysis using data from a sample of 725 manufacturing plants from
21 countries.
Findings – S&OP practices of organizational management, technological integration, measurement
systems and integration of plans impact positively on manufacturing operational dimensions of
quality, delivery and flexibility. Process complexity moderates the effect of S&OP practices,
amplifying its impact upon all three performance dimensions. Product complexity moderates the effect
on quality, but not on delivery and flexibility.
Practical implications – S&OP practices of organizational and technological coordination of
manufacturing and new product design; information technology to measure information sharing and
planning; dedicated information systems do impact upon manufacturing operational performance.
Results are amplified by process complexity. The more complex are the manufacturing processes the
larger the gains of S&OP.
Originality/value – This research applies contingency theory to S&OP and empirically demonstrates
its impact on manufacturing operational performance and the moderator role of complexity.
Description
Keywords
Product complexity Manufacturing operational performance Advanced manufacturing technology Procescomplexity Paper type Research paper
Pedagogical Context
Citation
THOMÉ, António Márcio Tavares; SOUSA, Rui; CARMO, Luiz Felipe Roris Rodriguez Scavarda do - Complexity as contingency in sales and operations planning. Industrial Management & Data Systems.ISSN 0263-5577. Vol. 114, N.º 5 (2014) p. 678-695
Publisher
Emerald