An empirical model of the relationships between manufacturing capabilities

Abstract

Purpose: The purpose of this paper is to examine the relationships between strategic manufacturing capabilities, particularly whether they are cumulative or trade‐off in nature. Design/methodology/approach: Uses statistical analyses, particularly structural equation modelling based on data from the third round of the International Manufacturing Strategy Survey. Findings: Finds mostly cumulative effects between the strategic capabilities. Shows that “quality” is a basis for “delivery”, which is a basis for “flexibility” and “cost”; between “flexibility” and “cost” an unclear relationship is found. Whether “flexibility” and “cost” are pursued exclusively or simultaneously seems to be connected with the implementation of certain improvement programmes. Research limitations/implications: Results cannot be interpreted in a prescriptive way, but only as descriptive findings stemming from a large empirical database. Future research in this area needs to be extended by longitudinal analyses and simulation studies because cross‐sectional analyses can only provide indirect empirical measures of dynamic changes of capabilities. Practical implications: Describes a common pattern of capability accumulation in the industries investigated. This information can be used to estimate potential competitor behaviour or as a way to perform in an innovative manner. Originality/value: Offers a clear conceptualisation of strategic capabilities with the help of an empirical study.