Developing Manufacturing Capability for Micro, Small, and Medium Enterprises

Lina Anatan

A chapter in The Finance-Innovation Nexus: Implications for Socio-Economic Development, 2024, vol. 34, pp 45-53 from Emerald Group Publishing Limited

Abstract: This study discusses how companies develop their manufacturing capabilities through learning and the mastery of processes and equipment based on the resource-based view. Resources and capabilities are formed through an internal and external learning process, also from processes and equipment owned by the company. Data are collected through surveys and selected based on purposive samples. By involving 61 respondents from micro, small and medium enterprises (MSMEs), the study found that there is no significant influence of internal and external learning on the mastery of production processes and equipment, however, both internal and external learning directly influence manufacturing capability. It is also found that mastery of processes and equipment significantly influences manufacturing capability. It indicates that the achievement of manufacturing capability within the company is strongly influenced by the learning process within the company which is developed based on the resource-based view. This study is expected to contribute to the strategic and operational management literature regarding the implementation of resource-based theory into practices through strategy formulation to develop manufacturing capability, especially in MSMEs.

Keywords: Resource-based view; internal learning; external learning; manufacturing capability; MSME; M19 (Other) (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eme:isetez:s1571-038620240000034004

DOI: 10.1108/S1571-038620240000034004

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