Template-Type: ReDIF-Paper 1.0
Author-Name: van Assen, M.F.
Author-Name-Last: van Assen
Author-Name-First: Marcel
Author-Name: van de Velde, S.L.
Author-Name-Last: van de Velde
Author-Name-First: Steef
Title: The Impact of Complexity, Rate of Change and Information Availability on the Production Planning and Control Structure
Abstract: The organizational theory literature argues that the more uncertain the environment, the more likely the firm’s operational decision structure is decentralized. However, it remains unclear which uncertainty dimensions (i.e. complexity, rate of change and lack of information) impacts the production planning and control structure the most given today’s turbulent manufacturing environments. Based on 206 responses from medium sized Dutch discrete parts manufacturing firms, this study retests the impact of these uncertainty dimensions. This study indicates that each dimension of uncertainty affects the production planning and control structure in a different way. In general, complexity, rate of change and lack of information result in a decentralization of the operational planning and control decision structure, but at the same time a centralization of the customer-order processing decision structure.
Creation-Date: 2003-11-11
File-URL: https://repub.eur.nl/pub/1033/ERS-2003-083-LIS.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2003-083-LIS
Classification-JEL: M, M11, R4
Keywords: empirical research method, production planning and control structure, structural equations model, uncertainty
Handle: RePEc:ems:eureri:1033