Linking manufacturing and competitive strategies for successful firm performance: a review and reconceptualization

Abstract

PurposeThe purpose of this study is to propose a framework depicting the dynamic links between a firm’s external environment, competitive strategy, manufacturing strategy, competitive advantage and firm performance. This is followed by articulating expected differences among the the content and process dimensions dimensions of a manufacturing strategy for different competitive strategies.Design/methodology/approachToday, manufacturing is widely recognized as one of the most important means of creating and sustaining a competitive advantage. This paper studies the emerging broader view of the strategic role of manufacturing by offering a manufacturing strategy model, showing its impact on competitive advantage and, ultimately, firm performance. This is accomplished by identifying and defining major content and process dimensions of manufacturing strategy and relating them to a firm’s strategic type. The paper uses an integrative competitive strategy typology (Segev, 1989) to clarify differences in manufacturing strategy dimensions and different competitive strategies. The concept of “fit as gestalt” among the dimensions of manufacturing strategy is also introduced. This study presents the implications of fit between manufacturing and competitive strategy and the contribution of content and process dimensions of manufacturing strategy to firm performance and concludes by providing implications for executives and future research issues.FindingsDifferences in content and process dimensions of manufacturing strategy for different competitive strategies are clarified.Research limitations/implicationsOther researchers may propose different frameworks for linking manufacturing and competitive strategies.Originality/valueThis paper presents an integrative view of competitive and manufacturing strategies. It highlights the numerous choices companies must make to ensure fit among the competitive strategic types and their corresponding manufacturing strategies. This integration adds coherence and parsimony to the literature. It provides a basis for conceptualizing manufacturing strategy, thus reconciling different strategic perspectives and reducing a potential source of conflicting research results.

Supply Chain Digitalization, Green Supply Chain, Supply Chain Resilience Toward Competitiveness and Msmes Performance

“…Apart from that, the findings of this research are consistent with the opinion of (Hamel, 2002), stating that based on the competency approach, competitiveness sources come from strategy, structure, competence, and innovation, as well as tangible and intangible resources. The findings of this research strengthen the opinions expressed Heizer et al ( 2020), Das and Canel (2023), and Menike (2019) that apart from various vital elements in operations, quality is the key to a company's success in carrying out its operations. In addition, it supports the opinion that high-quality performance is critical to successful operations and can influence a company's competitive advantage position (Krajewski and Ritzman, 2010;Peng and Schroeder, 2011;Afraza et al, 2021;Kim, 2006).…”

“…Meanwhile, competitiveness and firm performance are often used interchangeably (Das and Canel, 2023). Viewed as a means to an end, competitiveness is often thought to be facilitated by superior value creation, thus leading to increased performance (Afraza et al, 2021).…”

Sustainable lean manufacturing as long-term strategy: performance framework development and prioritization

“…The vital role of manufacturing in the creation of competitive advantage has been recognized more than a transformation process but as a crucial contribution to the conceptual, production and delivery of goods and services that leads to superior firm performance (Das and Canel, 2023). The competitive priorities orientation in operations management refers to a way for companies to develop and improve the results according to their business strategy, and sand-cone models have been highly covered in the literature (Henao and Sarache, 2022).…”

“…The competitive priorities orientation in operations management refers to a way for companies to develop and improve the results according to their business strategy, and sand-cone models have been highly covered in the literature (Henao and Sarache, 2022). The synergy between the firm's manufacturing strategy and competitive strategy provides focus and direction and also ensures effective resource utilization which supports gaining a competitive advantage that enhances its financial performance (Das and Canel, 2023).…”

Not just nuts and bolts

“…This allows those businesses to make decisions that beneficial for each of the different stages of the product or service life cycle. In their work, Das and Canel (2022) sought to identify and explore manufacturing strategy as a way to achieve a competitive advantage.…”