Automation and organizational performance: The case of electronics manufacturing firms in Singapore

Abstract

We studied the impact of production automation on organizational performance in 52 electronics manufacturing firms in Singapore. Four dimensions of organizational performance were identified: operational performance, labor management effectiveness, workers' well-being and remuneration. On the whole, automation was perceived to have resulted in greater improvements in operational performance and worker's well-being than in labor management effectiveness and workers' remuneration. However, there was significant positive correlations among all four dimensions of organizational performance. Moreover, the key determinants that affected the extent of improvement achieved by automation varied among the four dimensions. Implications of the findings for automation management are discussed.