Competitive priorities, plant improvement and innovation capabilities, and operational performance: A test of two forms of fit
International Journal of Operations & Production Management
ISSN: 0144-3577
Article publication date: 26 April 2011
Abstract
Purpose
The purpose of this paper is to examine the strategic contingency of plant improvement capability and innovation capability.
Design/methodology/approach
Two forms of fit between the two capabilities and competitive priorities were empirically tested. 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. It was 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; and there are 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
Citation
Xiaosong Peng, D., Schroeder, R.G. and Shah, R. (2011), "Competitive priorities, plant improvement and innovation capabilities, and operational performance: A test of two forms of fit", International Journal of Operations & Production Management, Vol. 31 No. 5, pp. 484-510. https://doi.org/10.1108/01443571111126292
Publisher
:Emerald Group Publishing Limited
Copyright © 2011, Emerald Group Publishing Limited