Implementation of Advanced Manufacturing Technology in Manufacturing Businesses of Pakistan: A Contingency Approach

Abstract

The purpose of the research is to test the impact of Advanced Manufacturing Technology (ADMATECH) on Management accounting (MACCT) along with the impact of both of these variables i.e. ADMATECH and MACCT on company’s performance (CPF). Further the mediating role of MACCT system between ADMATECH and CPF was also analyzed. Data from 263 manufacturing companies of Pakistan was collected through questionnaire that was taken from different researches. ADMATECH, MACCT and CPF were taken as exogenous, mediating and endogenous variables respectively. To analyze the contingency model of MACCT practices different test were applied that includes validity, reliability and regression. For all these analysis version 23 of SPSS was used. The outcomes showed that the usage of ADMATECH has no effect on CPF i.e. there is an insignificant influence of ADMATECH on CPF. Further results showed that ADMATECH has an effect on the usage of MACCT system i.e. ADMATECH has a significant influence on MACCT system. So it can be said that implementation of ADMATECH stresses on greater usage of MACCT system. Results have also indicated a significant influence of MACCT practices on CPF. This means MACCT system help corporations to compete in competitive environment which ultimately improves CPF. Finally it was also found that the link between AMATECH and CPF was indirect via MACCT i.e. MACCT is a full mediator between ADMATECH and CPF. According to researcher’s knowledge about Pakistan, the relationship between these three factors have not been explored in Pakistan. So the researcher has tried to find out the relation between these three variables i.e. ADMATECH, MACCT and CPF. The outcomes of this research will assist managers of these companies in determining whether the usage of ADMATECH is beneficial to increase CPF, with the mediating role of MACCT system. Further this study could assist top management of manufacturing businesses towards technical alliance with ADMATECH manufacturers for designing and developing of products