Competitive Priorities in Operations Management

Abstract

Identifying manufacturers' competitive priorities has long been considered a key element in manufacturing strategy research. However, relatively little effort has been devoted to measurement of these constructs in published research. In this study we develop scales for commonly accepted competitive priorities, cost importance, quality importance, delivery-time importance, and flexibility importance. We assess how well the scales capture the constructs that they represent using data collected from 114 manufacturing plants in the United States. The findings suggest that the instrument developed can provide reliable data and that the constructs measured are valid. In addition, comparisons between pairs of informants representing the same business indicate that the perceptual measures of competitive priorities are as reliable as point estimates of routine, seemingly objective information.

Customer integration and operational performance: The mediating role of information quality

“…Hence consistent with the RBV, manufacturing capabilities have been posited and found to influence organizational performance (White, 1996;Ward et al, 1998;Flynn et al, 1999;Rosenzweig et al, 2003;Swink et al, 2005;Kim, 2006;Yu et al, 2014); specifically, how well an organization achieves its market and financial goals (Li et al, 2005). Market performance focusing on customer-oriented indicators such as growth in market share (Rosenzweig et al, 2003;Li et al, 2005;Swink et al, 2007) and financial performance referring to indicators that are assumed to reflect the fulfilment of the economic goal of the company such as profitability, return on investments (ROI), return on assets (ROA) and return on sales (ROS) (De Toni and Tonchia, 2001;Chen and Paulraj, 2004).…”

“…However, manufacturing capability refers to both process abilities as well as operational outcomes, which has brought some semantic differences and confusion over the term in the literature (Swink and Hegarty, 1998;Ward et al, 1998;Lau Antonio et al, 2007;Swink et al, 2007;Peng et al, 2008). The present study conceptualizes manufacturing capability as the actual (or realized) competitive ability (or strength) relative to primary competitors in the targeted market (Swink and Hegarty, 1998;Ho et al, 2002;Rosenzweig et al, 2003;Swink et al, 2007).…”

“…However, flexibility goes beyond the accommodation of product changes and includes the ability to respond to disruptions such as machine breakdowns or late arrival of materials (Chan, 2003;Chavez et al, 2015b). According to Ward et al, (1998), flexibility can be measured by considering aspects such as the ability to accommodate changes to product mix and production volume along with product and process modifications. Studies have supported the significant and positive effect of flexibility on financial and market based performance indicators (Tracey, 2005;Lau Antonio et al, 2007;Jacobs et al, 2011).…”

Manufacturing Flexibility and Operational Performance of Pharmaceutical Manufacturing Companies in Jordan

“…Some conceptual studies suggested also innovativeness and service as additional priorities. Empirical research and strategy theories consistently stressed the four basic capabilities (Schmenner and Swink 1998;Ward, McCreery, Ritzman, and Sharma 1998). On the other hand, the operations performance factors for manufacturing firms are well established in the operations literature, which identifies cost, flexibility, quality, dependability, and speed as critical manufacturing competitive priorities (Vickeryet al 1997;Slack et al 2004).…”

“…Capability dimensions mean: conformance quality, cost efficiency, delivery dependability, flexible responsiveness, new product development and new product introduction (Noble 1995;Ward et al 1995;Vickery et al 1997;Ittner and Larcker 1997b;Ward et al 1998;Ward andDuray 2000). Operations strategy should provide opportunities to help make core competencies and capabilities more tacit and untouchable.…”