Purpose -The present paper proposes simultaneous research into the effects of co-operation with buyers and suppliers on company performance, and how both types of co-operation interact in one specific industry. Design/methodology/approach -The paper conducts an analysis of a sample of 80 sawmills in the Spanish regions of Galicia and the Basque Country, comprising most of the wood production in Spain. Findings -Contrary to prior research, the results suggest that contextual factors, inherent to each supply chain, affect the relationship between supplier-customer co-operation and performance.Research limitations/implications -The findings lead one to argue that some traditional arguments in favour of co-operation with buyers and suppliers might not be applicable to specific industries, positions in the value chain or exchanged products, and that industry-specific variables should be included in future research. Practical implications -Sawmills appear to benefit only from co-operation with buyers, but not from co-operation with suppliers. Furthermore, the two types of co-operation do not appear to generate synergy. Originality/value -The study adopts a systemic view of the supply chain and argues that industry-specific factors, and position in the value chain, should be included as control variables in empirical work researching the competitive consequences of co-operation in the value chain.

PurposeThe purpose of this study is to examine the relationship between the implementation of certain structural manufacturing decisions and the importance that is attached to certain competitive priorities in the firm's business strategy. The paper seeks to analyse the role these decisions play in the creation of a firm's competitive advantage, and aims to provide evidence of which decisions provide the firm with strategically relevant production capabilities.Design/methodology/approachThe hypotheses were tested using data collected from business units in the metal industry in Spain, by means of a postal survey. A total of 188 completed questionnaires were obtained and a structural equations analysis was conducted on the results.FindingsThis study has provided evidence for the strategic importance of structural decisions in the production area. The findings of this research suggest that the implementation of certain decisions can originate capabilities on which a competitive advantage can be based.Research limitations/implicationsThe results of this research are specific to the industry, and the analysis is static. Further research should be conducted in other industries. A longitudinal study would be convenient, in order to obtain a good understanding of the causal relationships between structural production decisions and the competitive priorities emphasised in the business strategy.Practical implicationsStrategic management of the capabilities which derive from structural manufacturing decisions is shown to have a relevant role in the creation of competitive advantage.Originality/valueThe present paper contributes to the study of the strategic function of manufacturing from the perspective of manufacturing capabilities. In particular, we examine the strategic contribution of structural manufacturing decisions by contributing different capabilities.

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This paper examines the effect of participation by foreign capital and the spillovers from a foreign presence on the technical progress of Spanish manufacturing firms. The results show that foreign direct investment (FDI) creates positive spillover effects for local firms, and when the presence of foreign capital and the absorptive capacity of spillovers from FDI are large, more technical progress ensues. Also, local companies in capital‐ and research and development (R&D)‐intensive industries experience larger positive FDI spillovers. For these reasons, government policies should aim to attract FDI, especially in the aforementioned industries.