Manufacturing Capability, Manufacturing Strategy and Performance of Indonesia Automotive Component Manufacturer

Automotive industry is believed to be the pioneer in pushing the growth of manufacturing industry in Indonesia. By implementing manufacturing strategy, the industry will get its performance improved. Automotive component manufacturer is an important part of automotive industry. This research discusses the relationship between influential variables with performance in Indonesia automotive component manufacturer namely manufacturing capability and manufacturing strategy. A model is developed and data are collected from automotive component manufacturers around Jakarta area. Data is processed using Structural Equation Modeling (SEM). The result shows that manufacturing capability significantly influences manufacturing strategy while manufacturing strategy also significantly influences performance of Indonesia automotive component manufacturer.