An exploratory system dynamics model of strategic capabilities in manufacturing

Abstract

Purpose

The purpose of this paper is to investigate the dynamics of accumulation processes of strategic capabilities in manufacturing, i.e. cost, quality, delivery, and flexibility. By applying a dynamic view, concepts from the literature are tested and shortcomings are identified.

Design/methodology/approach

The analysis was conducted with the help of an exploratory system dynamics model that represented a hierarchy of these accumulative capabilities. The exploratory model was parameterized with empirical data from a large international survey of manufacturing plants.

Findings

The major finding of this paper is that results from a static analysis can be transferred into a dynamic model, which can be used to test allocation strategies of resources to strategic capabilities.

Practical implications

The practical implications concern the distribution of managerial attention on the four capabilities and the consequences of different distributions.

Originality/value

The value of this paper lies in the insights gained by the transformation of a verbal model into a quantified simulation model, and the learning resulting from simulation experiments.

Citation

Größler, A. (2010), "An exploratory system dynamics model of strategic capabilities in manufacturing", Journal of Manufacturing Technology Management, Vol. 21 No. 6, pp. 651-669. https://doi.org/10.1108/17410381011063978