Product/process definition, technology adoption and workforce qualification: impact on performance

Abstract

This paper analyses the impact of manufacturing technologies (MTs) and workers' qualifications on labour productivity and flexibility, taking into account the product-process (P-P) strategy adopted by the company. This allows for a discussion about the well-known P-P matrix initially proposed by Hayes and Wheelwright (1994) in order to evaluate options of production systems. The empirical analysis is performed by means of a panel of data of 13 years for the Spanish manufacturing industry, which includes a total of 7741 observations. The results indicate a complementary effect between technology and skills to overcome the trade-offs of production systems.