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Critical Operations Capabilities for Competitive Manufacturing in a High-Cost Environment: A Multiple Case Study
Jönköping University, School of Engineering, JTH, Supply Chain and Operations Management.ORCID iD: 0000-0002-3789-5608
Jönköping University, School of Engineering, JTH, Supply Chain and Operations Management.ORCID iD: 0000-0002-8305-4412
Jönköping University, School of Engineering, JTH, Supply Chain and Operations Management.ORCID iD: 0000-0002-1627-8459
2020 (English)In: Operations and Supply Chain Management, ISSN 1979-3561, Vol. 13, no 1, p. 94-107Article in journal (Refereed) Published
Abstract [en]

There is increased interest in relocation to and from high-cost environments, but there remains a lack of knowledge with regard to operations capabilities in this specific context. The purpose of this study is thus to investigate critical operations capabilities in a high-cost environment. The research process is based on the investigation of an existing framework of operations capabilities through a multiple case study including five Swedish manufacturing companies. The findings reveal that all the dimensions and capabilities included in the framework were considered critical, and additional operations capabilities could be identified: service quality, supplier dependability, supplier flexibility, supply chain innovation, supply chain sustainability. The investigation underlines the dynamic nature of operations capabilities, which need to be updated constantly according to the environment in which they are developed. This study contributes on a practical level to managers by creating an overview of operations capabilities in a high-cost environment. Through the investigation of critical operations capabilities, it is possible for managers to find new areas of competitiveness, as well as to understand their current areas of excellence. The study makes several contributions, such as the identification of operations capabilities, their investigation and validation in a specific environment.

Place, publisher, year, edition, pages
OSCM Journal , 2020. Vol. 13, no 1, p. 94-107
Keywords [en]
capabilities, case study, high-cost environment, location decision, reshoring
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-38598DOI: 10.31387/oscm0400255ISI: 000533601400008Scopus ID: 2-s2.0-85086377543Local ID: POA JTH 2020OAI: oai:DiVA.org:hj-38598DiVA, id: diva2:1175560
Note

Included in licentiate thesis in manuscript form. Earlier versions of this paper were also presented at the International conference on Industrial and System Engineering (IConISE), Bali, Indonesia, August 2017; the 24th EurOMA Conference, Edinburgh, Scotland, July 2017 and the 23rd EurOMA Conference, Trondheim, Norway, June 2016.

Available from: 2018-01-18 Created: 2018-01-18 Last updated: 2021-11-12Bibliographically approved
In thesis
1. Critical operations capabilities in a high cost environment
Open this publication in new window or tab >>Critical operations capabilities in a high cost environment
2018 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

Many manufacturing firms, driven by the goal of beating the competition, have relocated their manufacturing operations from a high to a low cost environment, creating issues for the western social welfare. In order to maintain manufacturing in high cost environments, firms located in such environments must improve their competitiveness.

Research has shown that firms need to be able to identify, develop and improve the operations capabilities that have the highest impact on the competitiveness. However, there is presently no coherent and contemporary framework of operations capabilities in the literature. There is also a lack of knowledge about operations capabilities in a high-cost environment. Therefore, the purpose of this research is to investigate critical operations capabilities in a high-cost environment.

This purpose has been addressed through two studies. The first investigated critical operations capabilities in a general environment, and was conducted through a systematic literature review (Paper I). The second study investigated critical operations capabilities in a high cost environment and was conducted through a focus group (Paper II) and a multiple case study (Paper III).

The result of this research is a framework of operations capabilities in a high cost environment. The framework includes seven dimensions and 23 operations capabilities. Specifically, the dimensions are: cost, quality, delivery, flexibility, service, innovation and environment. The findings revealed that quality is considered as the most critical dimension in a high cost environment, while environment is considered as the least critical in a high cost environment. The findings also revealed two additional operations capabilities in the empirical data, which are 'flow efficiency' and 'employee flexibility'.

This research contributes to the current body of knowledge by introducing a novel perspective and original thinking about operations capabilities in a high cost environment. The framework of operations capabilities could support both practitioners and researchers in the identification and development of critical operations capabilities for winning strategies in a high cost environment.

Place, publisher, year, edition, pages
Jönköping: Jönköping University, School of Engineering, 2018. p. 47
Series
JTH Dissertation Series ; 034
Keywords
capabilities, priorities, high cost environment, operations strategy
National Category
Business Administration
Identifiers
urn:nbn:se:hj:diva-38599 (URN)978-91-87289-35-4 (ISBN)
Supervisors
Available from: 2018-01-18 Created: 2018-01-18 Last updated: 2019-02-14Bibliographically approved
2. Critical Operations Capabilities for Competitive Manufacturing: A High-Cost Environment Perspective
Open this publication in new window or tab >>Critical Operations Capabilities for Competitive Manufacturing: A High-Cost Environment Perspective
2021 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Manufacturing companies operating in a high-cost environment are facing many challenges attempting to achieve a competitive advantage. These challenges have encouraged manufacturing companies to relocate their manufacturing operations from a high-cost to low-cost environment, creating issues for the western social welfare. Manufacturing companies located in a high-cost environment must be able to improve their overall competitiveness to maintain their manufacturing in such environment.

Research has shown that the competitive success of a company depends on its ability to identify, develop and improve those operations capabilities that have the highest impact on their competitiveness. However, the literature provides limited emphasis on critical operations capabilities for competitive manufacturing in a high-cost environment. Therefore, the purpose of this research is to investigate critical operations capabilities and how they contribute to a competitive advantage in a high-cost environment.

To fulfill the purpose, two research questions have been formulated. The first research question is: what are the critical operations capabilities for competitive manufacturing in a high-cost environment? The second research question is: How do critical operations capabilities contribute to competitive advantage in a high-cost environment? The research questions were answered through different studies and the implementation of different research strategies.

This thesis contributes with increased knowledge on critical operations capabilities in a high-cost environment and how they contribute to a competitive advantage. This research has provided an updated and modernized framework of critical operations capabilities in a high-cost environment. Furthermore, this research has also offered an overview on different strategies which are implemented in a high-cost environment for reaching a competitive advantage. Thus, it also included an analysis on challenges and solutions faced by competitive manufacturing in a high-cost environment.

Place, publisher, year, edition, pages
Jönköping: Jönköping University, School of Engineering, 2021. p. 100
Series
JTH Dissertation Series ; 066
Keywords
capabilities, priorities, high-cost environment, operations strategy
National Category
Production Engineering, Human Work Science and Ergonomics
Identifiers
urn:nbn:se:hj:diva-55052 (URN)978-91-87289-70-5 (ISBN)
Public defence
2021-12-10, Gjuterisalen (E1405), School of Engineering, Jönköping, 10:00 (English)
Opponent
Supervisors
Available from: 2021-11-12 Created: 2021-11-12 Last updated: 2022-03-21Bibliographically approved

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Sansone, CinziaHilletofth, PerEriksson, David

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