Operational Practices and Performance: An Empirical Analysis of Brazilian Manufacturing Companies

Abstract

This paper used the SEADE database on 1,200 manufacturing companies, located in São Paulo state, active in 14 different industries, to test the relationship between certain operational practices, such as quality, just in time, ISO certifications and level of outsourcing with organizations’ performance. The study used a multiple regression technique and performance was measured in terms of Profitability and Revenue Growth Rate. Generally, no relationship between these practices and performance could be found. The findings were unable to support the large body of literature in operations management that establishes this link based on anecdotal evidence. Level of outsourcing was the only consistently related variable, negatively related with both profitability and growth.