The Crucial Interrelationship Between Manufacturing Strategy and Organizational Culture

This paper proposes a relationship between manufacturing strategy and organizational culture, based on an examination of the research literature. Survey data were collected from 822 respondents in 41 plants in the transportation, electronics, and machinery industries in the U.S. These plants included random samples of U.S.-owned and Japanese-owned manufacturers in the U.S., and manufacturers reputed to use advanced manufacturing practices. Analysis indicates that manufacturing strategy and organizational culture are related, and that a manufacturer with a well-aligned and implemented manufacturing strategy exhibits a collectivist or group-oriented organizational culture with coordinated decision making, decentralized authority, and a loyal work force.