In a relatively short period of time the Japanese have been able to produce higher quality products that are more reliable and cost less than many competing products manufactured throughout the world. Their ability to accomplish this task has been attributed to their precise utilization of various operations management activities, along with human resource development in the manufacturing segment of their organizations. If the intensive level of global competition brought about by the Japanese has highlighted one thing for American manufacturers, it is the importance of operations management activities in the competitive success of the firm. A number of writers have indicated that systematic participation in typical operations management activities may enable a firm to produce a realible, quality product at a competitive price.(1,2) However, most previous research in operations management has concerned itself with small-scale problems within the context of large firms.(3,4) This unduly restrictive focus has not provided the data to develop the strong conceptual framework needed to identify the interrelationships and impact of operations management on the total organization.(5) Thus, there is a general lack of system-wide research in operations management.
The purpose of this article are: (1) to determine if systematic participation in commonly recognized operations management activities has an impact on a firm's performance; (2) to explore the extent of this participation in a dynamic small business manufacturing environment; and (3) to correct some of the methodological shortcomings of past system-wide research on operations management and financial performance. Thus, this research attempts simultaneously to address three of the major deficiencies in the operations management body of knowledge. Utilization of a small business environment allows a number of factors causing significant