Competitive Priorities, Plant Improvement and Innovation Capabilities, and Operational Performance: A Test of Two Forms of Fit

International Journal of Operations and Production Management, Vol. 31, No. 5, 2011

37 Pages Posted: 21 Feb 2011 Last revised: 18 Oct 2011

See all articles by David Xiaosong Peng

David Xiaosong Peng

University of Houston - C.T. Bauer College of Business

Roger Glenn Schroeder

University of Minnesota - Twin Cities - Department of Operations and Management Science

Rachna Shah

University of Minnesota - Twin Cities - Department of Operations and Management Science

Date Written: February 17, 2011

Abstract

Purpose – Examining the strategic contingency of plant improvement capability and innovation capability. Two forms of fit between the two capabilities and competitive priorities were empirically tested.

Design/Methodology/Approach – Data collected from a sample of 238 manufacturing plants were used to test the hypotheses using regression.

Findings – The results provide partial support for fit as mediation. However, there was no evidence supporting fit as moderation. We found that improvement capability and innovation capability are associated with different competitive priorities and also have varying impact on different operational performance dimensions.

Research limitations/implications – There are two limitations to this research: only three operations management (OM) practices are included in each capability examined; somewhat limited measures of competitive priorities and operational performance.

Originality/value – This study examines multiple forms of fit between competitive priorities and operations capabilities. The findings can inform managers to selectively implement OM practices for developing the needed operations capabilities given the chosen competitive priorities.

Keywords: Operations Strategy, Competitive Priorities, Operational Performance, Practices, Capabilities, Fit, Contingency Theory

JEL Classification: D20, D2,M11, M, L23

Suggested Citation

Peng, David Xiaosong and Schroeder, Roger Glenn and Shah, Rachna, Competitive Priorities, Plant Improvement and Innovation Capabilities, and Operational Performance: A Test of Two Forms of Fit (February 17, 2011). International Journal of Operations and Production Management, Vol. 31, No. 5, 2011. Available at SSRN: https://ssrn.com/abstract=1763437

David Xiaosong Peng (Contact Author)

University of Houston - C.T. Bauer College of Business ( email )

Houston, TX 77204-6021
United States

Roger Glenn Schroeder

University of Minnesota - Twin Cities - Department of Operations and Management Science ( email )

Minneapolis, MN 55455
United States

Rachna Shah

University of Minnesota - Twin Cities - Department of Operations and Management Science ( email )

Minneapolis, MN 55455
United States

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