Market priorities, manufacturing configuration, and business performance: an empirical analysis of the order‐winners framework

Abstract

This study carries out an empirical test of the order-winners framework in manufacturing organizations. Hill [Hill, T., 1985. Manufacturing Strategy: The Strategic Management of the Manufacturing Function, first ed. Macmillan, Basingstoke; Hill, T., 2000. Manufacturing Strategy: Text and Cases, second ed. Palgrave, Basingstoke] proposed the order-winners framework to help managers to improve understanding about markets and to develop a consistent manufacturing strategy. The framework defines ideal profiles of products and markets, and manufacturing and investment decisions that relate to alternative process choices. The study tests the hypothesis of a negative relationship between misfit to an ideal profile defined in the framework and business performance in domestic market share, return on sales, and return on investment in a survey of 183 manufacturers from 17 countries. Results found a significant negative relationship between misfit and domestic market share. The study contributes to operations management research by developing a methodology to measure fit as profile deviation in the context of manufacturing, and applying this methodology to the order-winners framework. #

Environment-quality management coalignment across industrial contexts: An empirical investigation of performance implications

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Fitness map: a classification of internal strategic fit in service organisations

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