An Exploratory Study of Differences in Manufacturing Strategy between National and Global Production Firms

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. [ABSTRACT FROM AUTHOR]; Copyright of Journal of Manufacturing Technology Management is the property of Emerald Group Publishing Limited and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)