Manufacturing capability development in a changing business environment

This study has empirically tested the relationships between business environment, manufacturing capability and performance using a sample of Chinese manufacturers. The results of this research show that in response to the changing economy, the Chinese manufacturers have emphasized the capabilities that have been adopted by many firms in the industrialized nations. The results also suggest that the business environment has a substantial impact on the choice of manufacturing capability focus. Additionally, we have found that high performance Chinese manufacturers adopt different competitive priorities in response to environmental stimuli than do low performance Chinese manufacturers.