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Abstract This study examines the effects of the fit between generic manufacturing strategies (GMS) and manufacturing objectives upon strategically relevant plant level performance outcomes (e.g. cost‐efficiency, quality, delivery, flexibility, and innovation). The proposition that plants with generic manufacturing strategies that are consistent (fit) with operational objectives will experience relatively higher levels of performance than others is tested using data from multiple countries and industries. A simultaneous estimation analysis revealed significant relationships between generic manufacturing strategies and plant performance, when accounting for operational objectives and while controlling for country, industry, and size effects.
Devaraj et al. (Sat,) studied this question.