Planning, capabilities, and performance: an integrated value approach

Abstract

PurposeHow do planning and capabilities affect operational performance? This paper aims to formulate hypotheses comprising correlations amongst those constructs in an integrated approach for industrial companies, considering the source, make and deliver process areas.Design/methodology/approachBased on a survey of 164 Brazilian industrial companies, analysis of data was conducted including descriptive statistics, evaluation of a research model's internal scale reliability, statistical construct path analysis, and structural equation modeling.FindingsThe findings indicate that planning and capabilities must be taken as inter‐related initiatives that jointly influence operations performance. Significant correlations were found amongst these constructs in the source, make and deliver process areas. The model tested on this study was able to explain 84 percent of the variation in the overall performance of the companies sampled.Research limitations/implicationsThe reference model was tested using a diversified sample of Brazilian industrial organizations and did not include service or other types of organizations, thereby limiting the generalizability of the results and conclusions. The findings suggest a balanced weight of operations capabilities and planning. Both play an important role on performance. These results can drive organizational strategy, indicating that companies should look to their capabilities, but that developing planning activities driven to the market should be considered mandatory.Originality/valueWhereas some aspects of the relationship between planning and performance as well as the relationship between capabilities and performance have been reviewed in early contributions, few studies have addressed these complex mediations using an integrated process value approach.

The impact of knowledge management processes on supply chain performance

“…Although the KBV provides the theoretical foundation to explain the relationship between KM and the Return process, we exclude it from our investigation because it is not as mature as the other four supply chain processes and has not been sufficiently developed and institutionalized in many companies (Zhou et al, 2011;Bronzo et al, 2012). Thus, we only examine the impact of KM processes on performance in the Plan, Source, Make, and Delivery process areas.…”

“…Three measurement items are developed based on the definitions provided by Supply Chain Council (2010) for each of the four SCOR processes representing the overall performance in a set of the main activities involved. Based on the argument of Bronzo et al (2012), which is not limited to any specific industry, the Return process is excluded from our survey of manufacturing companies because valid and reliable information about this process cannot be obtained. This idea is supported by our interviews with supply chain experts and practitioners and is also in line with other studies such as Trkman et al (2010) and Zhou et al (2011) in which the Return process has been excluded from the SCOR process areas where manufacturing companies are surveyed.…”

Impact of the integration of tactical supply chain planning determinants on performance

“…Though Ref. [3] used the SCOR model to study the impact of planning on performance b y evaluating each of the process areas -source, make and deliver, the authors did not detail the determinants of the planning process. Using the SCOR model, Ref.…”

“…The Supply Chain Operations Reference (SCOR) model provides a processb ased framework, which incorporates five main process areasplan, source, make, deliver and return -that constitute a SC [2]. The SCOR model is considered to b e a powerful tool that can b e used to study and understand how performance variab les inter-relate and how to manage the trade-offs resulting from these relationships [3]. Apart from the return process area (which is an aftermarket process), the determinants of each of these process areas (or functions) can impact on the performance of the SC.…”

Assessing Multiple-Item Manufacturing Capability Measures: A Critical Review

“…It has long been recognized that manufacturing capabilities play a key role in the performance of manufacturing firms (Skinner, 1969;Anderson et al, 1989;Roth and Miller, 1992;Vickery et al, 1993;O'Regan and Ghobadian, 2004;Ibrahim, 2010;Bronzo et al, 2012). Manufacturing capabilities are "the strengths of a plant with which it wants to support corporate and marketing strategy and which help it to succeed in the marketplace" (Gröβler and Grübner, 2006, p. 459).…”