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In the last several decades, the United States has experienced a decline in productivity, while the world has seen a maturation of the global marketplace. Nations have moved manufacturing strategy and process technology issues to the top of management priority lists. The issues surrounding manufacturing technologies and their implementations have assumed greater importance in overall manufacturing strategy. Practitioners and researchers have developed strong interest in how advanced manufacturing technology (AMT) can be used as a competitive tool in the global economy to combat the phenomena of fragmented mass markets, shorter product life cycle, and increased demand for customization. The combination of increased production flexibility and higher efficiency contradicts traditional manufacturing strategy. In traditional thinking, efficiency is possible only in the production of large volumes of standard products, while customization is associated with higher costs. Clearly, the impact of AMT is redefining the way multinational corporations are managing manufacturing operations; however, effective implementation of AMT has not occurred as rapidly as the development of technology due to organizational considerations. The key to successful AMT planning and implementation appears to be the choice of an appropriate manufacturing system and the attainment of an organizational infrastructure that will offer maximum support to the chosen system. To achieve the desired benefits from AMTs, marketing and manufacturing must work together to ensure that the marketing strategy reflects the manufacturing capabilities of the new technology. Closer working relationships among all other functions of the organization are also required if the firm is to achieve its innovation objectives. (Contains 1 table.)