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The different effects of hardware and software on production interdependence in manufacturing
Decision Support Systems ( IF 7.5 ) Pub Date : 2021-02-25 , DOI: 10.1016/j.dss.2021.113521
Fengmei Gong , Zhuo (June) Cheng , Barrie R. Nault

Make or buy decisions are often decisions between investing in capital for production or building supply chain relationships upstream. These are strategic decisions about production interdependence: the degree to which materials and services are provided internally versus purchased externally. Information technology (IT) has increased productivity with hardware and software such as robotics and flexible manufacturing systems. IT has also improved information sharing and coordination along the supply chain by integrating business processes with software. Within manufacturing, we examine whether hardware and software are related to choices of make versus buy differently. From a transaction cost perspective this can be due to differential impacts on reducing internal production costs versus external coordination costs. We find that in U.S. manufacturing industries from 1998 to 2016, hardware favors internal production suggesting hardware reduces costs of internal provision more; software increased purchases from upstream suppliers suggesting software reduces costs of external provision more. This result shows that hardware and software complementarity has limits in that each has distinct productivity targets, and that empirically the decision of make versus buy is manifested by investments in these different types of IT capital. That is, when facing strategic decisions about make versus buy in manufacturing, hardware and software have opposite impacts.



中文翻译:

硬件和软件对制造中生产相互依存关系的不同影响

制造或购买决策通常是在为生产进行资本投资或在上游建立供应链关系之间的决策。这些是关于生产相互依赖的战略决策:内部提供材料和服务与外部购买的程度。信息技术(IT)通过硬件和软件(例如机器人技术和灵活的制造系统)提高了生产率。通过将业务流程与软件集成,IT部门还改善了整个供应链中的信息共享和协调。在制造过程中,我们检查硬件和软件是否与制造或购买选择相关。从交易成本的角度来看,这可能是由于降低内部生产成本与降低外部协调成本产生了不同的影响。我们在美国发现 从1998年到2016年的制造业,硬件偏爱内部生产,这表明硬件可进一步降低内部配置的成本;软件增加了从上游供应商的采购,这表明软件可以进一步降低外部供应的成本。该结果表明,硬件和软件的互补性是有局限性的,因为它们各自具有不同的生产率目标,并且根据经验,通过对这些不同类型的IT资本进行投资来体现制造与购买的决定。就是说,当面对制造业中制造与购买的战略决策时,硬件和软件会产生相反的影响。软件增加了从上游供应商的采购,这表明软件可以进一步降低外部供应的成本。该结果表明,硬件和软件的互补性是有局限性的,因为它们各自具有不同的生产率目标,并且根据经验,通过对这些不同类型的IT资本进行投资来体现制造与购买的决定。就是说,当面对制造业中制造与购买的战略决策时,硬件和软件会产生相反的影响。软件增加了从上游供应商的采购,这表明软件可以进一步降低外部供应的成本。该结果表明,硬件和软件的互补性是有局限性的,因为它们各自具有不同的生产率目标,并且根据经验,通过对这些不同类型的IT资本进行投资来体现制造与购买的决定。就是说,当面对制造业中制造与购买的战略决策时,硬件和软件会产生相反的影响。

更新日期:2021-04-12
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