Competitive capabilities : a contingency perspective

• In this paper we present and test an alternative model for competitive capabilities.Traditionally, a cumulative model has been viewed as having one sequence of buildingoperations capabilities in a firm in support of market needs, including quality,delivery, cost efficiency and flexibility. Although appealing as a conceptual model,empirical testing has not been able to fully support the cumulative model. This paperacknowledges the need for differentiated approaches to managing capability indifferent operating environments. The competitive capability model that is presented istested empirically using data from the High Performance Manufacturing (HPM) study,including three industries and seven countries – a total of 211 plants. The results showthat there is empirical support for differentiating the competitive capabilities; firmsproducing to stock follow a path of quality, delivery and cost, whereas those producingto customer order exhibit a capability path in the order of quality, delivery andflexibility. Thus, while quality and delivery are common, cost and flexibility acts asdifferentiators contingent upon the manufacturing environment.

Keyword

Operations strategy; Empirical research; Competitive capabilities; Decoupling point

Publication and Content Type

vet (subject category)

art (subject category)