Adaptation of a Focused Factory to New Objectives: The Influence of Manufacturing Requirements and Capabilities

This paper studies organizational change following a shift in an industry environment, in the context of how a focused factory adapts to a change in its manufacturing objectives. We use the organizational nature of production operations to suggest that the effectiveness of adaptation will depend on how well the manufacturing requirements of the new objectives match manufacturing capabilities at the production line level. We test our hypotheses using primary data from the Hartselle, Alabama compressor manufacturing focused factory of the Copeland Corporation. The results suggest that factors that influence adaptability derive from individual and organizational competence, and that the direction and extent of their influence depends on the systemic nature of the operational activity concerned. The results highlight roles of carefully designed complexity in operations and of process-oriented decision making on the shop floor in successful adaptation. This work contributes to our understanding of how business organizations overcome constraints to change.