Beyond the trade-off and cumulative capabilities models: alternative models of operations strategy

Abstract

Organisations are expected to develop sound strategies relating to their core operations capabilities of cost efficiency, quality, delivery, flexibility and innovation, to gain and maintain competitive advantage. However, there is a paucity of specific models that can be used to explain and predict how organisations combine and use these capabilities. Previous research has primarily focused on the 'trade-off' and the 'cumulative capabilities' models. In this study, data from an international sample of 1438 manufacturing plants are used to explore other models that organisations are using in addition to the two predominant models. This analysis shows that, in practice, the trade-off model is not used, but the cumulative capabilities model is used extensively. Further, our proposed new models, the 'threshold', 'average' and 'multiple', are prevalent in many plants. Also, a small proportion of the plants have in place the 'uncompetitive' model. In terms of relative effectiveness, there are no significant differences between the models with respect to several measures of operational performance. Overall, this study provides empirical evidence that there are other operations strategy models beyond the trade-off and cumulative capabilities dichotomy that organisations deploy.

The adoption of multiple certification standards: perceived performance implications of quality, environmental and health & safety certifications

“…The relationship between these three dimensions are also related to the trade-off debate with regard to operations strategy (Singh et al, 2014). This trade-off discussion in the operations management literature could also occur in terms of the performance implications of formal certifications, since the dimensions may not be compatible.…”

Operations strategy frameworks in manufacturing, services and product-service systems

“…Some authors proposed an analysis on the CPs as a combination, to better define strategy and operations, with a trade-off approach in the CPs [44]. Nonetheless, others identified the trade-off model concept as not being used by manufacturing companies in practice [47]. Other approach used the CPs as building blocks for developing a tool to aid managers in decision making and monitoring the evolution of the strategic decisions [45].…”

“…Using a sample of 1438 manufacturing plants, Singh, Wiengarten, Nand and Betts [47] studied which models could show how organizations use their operations capabilities (e.g. cost, quality, delivery).…”

Middle managers’ perceptions of operations strategies at construction contractors

“…A firm always selects competitive criteria (also labelled capabilities, priorities or objectives by scholars) for the operations function. Singh et al (2015) listed five criteria: cost efficiency, quality, delivery (speed and/or accuracy), flexibility and innovativeness, where innovativeness was a late addition. Skinner (1969) claimed that there is a trade-off between different competitive criteria, preventing manufacturing firms from choosing more than one competitive criterion.…”