Effect of the manufacturing practices and technological capability on manufacturing performance in Malaysia

Presently, despite the notably enhanced performance, there is a concern about low implementation on technological incorporation and insufficient technological capabilities (TCs) in manufacturing companies in Malaysia. There is also a loophole in aligning the firm's manufacturing strategies, its objectives and its capabilities. This research aimed to analyze the TC moderating effect on practices and performance relationship. A quantitative research with stratified random sampling procedure was employed to gather responses from 175 manufacturers in Malaysia. Hierarchical regression analyses revealed that two levels of TC, namely technological acquiring capability (TAC) and technological upgrading capability (TUC) have impacted the practices-performance relationships very minimally. TAC moderated the relationship between: strategic supplier partnership (SSP) and setup-time reduction with quality; information technology (IT), SSP, and quality culture (QC) with flexibility; QC with cost; and customer relationship (CR), information sharing, SSP, and QC with delivery. TUC moderated the relationship between IT and QC with cost; and between CR, QC, and production layout with delivery. However, TUC did not influence the relationships between manufacturing practices dimensions and, both quality and flexibility. The study contributes firstly, to the body of knowledge by examining the moderating roles of TC. Secondly, it complements the resource-based view (RBV) theory regarding the interconnection between firm resources, routines, capabilities, and performance. Thirdly, it particularly benefits the industrial practitioners, where the study provides the latest practical information and reveals the current status of the industry. Fourthly, the practitioners are also at an advantage when they are aware of the strategies, highlighted in this study, of overcoming the anticipated challenges in the business. Finally, the study supports the idea that every practice and capability implemented within the company will eventually affect a certain area of performance