Partial Abandonment by Smes Investing in Advanced Manufacturing Technology: Some Qualitative Evidence

As their large competitors adopt advanced manufacturing technology (AMT), small- and medium-sized enterprises increasingly recognize the need to do likewise. Although many of their owners and managers intuitively recognize the strategic benefits of AMT, they are reluctant to make the necessary capital investment. Those who do invest often encounter delayed or non-existent project profitability. An exploratory study was conducted to observe how small- and medium-size enterprises (SMEs) adapt to setbacks during AMT implementation. We contend that SMEs, while in the throws of complex AMT implementations, abandon valuable strategic benefits of the technology that are integral to its return on investment. We propose this is partly attributable to inadequate assessment of the tangible and intangible costs and benefits both at the time of investment evaluation and when responding to setbacks that arise during implementation.