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Operation Strategies Case Study

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Operation Strategies Case Study
International Journal of Production Research
Vol. 48, No. 14, 15 July 2010, 4179–4198

The impact of inclusive and fragmented operations strategy processes on operational performance
Steve Browna*, Brian Squireb and Mike Lewisc a School of Business, University of Exeter, Rennes Drive, Exeter EX4 4PU, UK;
Decision Sciences and Operations Management, Manchester Business School, Booth Street
West, Manchester, M15 6PB, UK; cSchool of Management, University of Bath, Claverton
Down, Bath, BA2 7AY, UK

b

(Received 18 June 2008; final version received 2 April 2009)
The links between strategy and performance remains an elusive ‘holy grail’ for researchers and practitioners alike. We do not seek to provide a prescriptive panacea in this paper but we find links between particular types of strategic formulation and operations performance in a range of key parameters.
Our research focuses on the personal computer industry where there are high demands placed on the capabilities of the operations function. We suggest that such capabilities do not happen by accident but are developed by specific strategies whereby in-house operations and business mainstream strategies, including supply, become closely linked in both planning and implementation.
Keywords: operations; strategy; performance

1. Introduction
This paper examines the relationship between the process and content of operations strategy within firms and plant performance in a range of operations parameters. Further, the paper examines the explicit links between business mainstream and operations strategies within firms by exploring the strategy formulation process and possible links between this relationship and subsequent operations performance. Although there is a substantial body of work that explores the links between operations strategy (OS) and a range of performance outcomes (Tunalv 1992, Kathuria and Partovi 2000, Rhee and
¨
Mehra 2006) there is more ambiguity in establishing



References: Akkermans, H.A. and Van Aken, J.E., 1992. Process-related problems in operations strategy. Amundson, S.D., 1998. Relationships between theory-driven empirical research in operations management and other disciplines Anderson, J.C., Cleveland, G., and Schroeder, R.G., 1989. Operations strategy: a literature review. Anderson, J., Schroeder, R., and Cleveland, G., 1991. The process of manufacturing strategy. Barnes, D., 2001. Research methods for the empirical investigation of the process of formation of operations strategy Barnes, D., 2002. The complexities of the manufacturing strategy formation process in practice. International Journal of Operations & Production Management, 22 (10), 1090–1111. Barney, J.B., 1986. Organizational culture: can it be a source of sustained competitive advantage? Academy of Management Review, 11 (3), 656–665. Barney, J.B., 1991. Firm resources and sustained competitive advantage. Journal of Management, 17 (1), 99–120. Barry, D. and Elmes, M., 1997. Strategy retold: toward a narrative view of strategic discourse. Bates, K.A., et al., 1995. The crucial interrelationship between manufacturing strategy and organizational culture Beach, R., et al., 2000. Manufacturing operations and strategic flexibility: survey and cases. Boeker, W., et al., 1997. Competition in a multi-market environment: the case of market exit. Boyer, K. and McDermott, C., 1999. Strategic consensus in operations strategy. Journal of Operations Management, 17 (3), 289–305. Boyer, K., Hult, G., and Tomas, M., 2005. Extending the supply chain: integrating operations and marketing in the online grocery industry Boyer, K. and Frohlich, M.T., 2006. Analysis of effects of operational execution on repeat purchasing for heterogeneous customer segments Bozarth, C. and Edwards, S., 1997. The impact of market requirements focus and manufacturing characteristics focus on plant Brown, S., 1996. Strategic manufacturing for competitive advantage. Hemel Hempstead, UK: Prentice-Hall. Brown, S., 1998. Manufacturing strategy, manufacturing seniority and plant performance in quality. Brown, S., 2000. Manufacturing the future – strategic resonance for enlightened manufacturing. Brown, S. and Bessant, J., 2003. The strategy-capabilities link in mass customization. International Journal of Operations and Production Management, 23 (7), 707–730. Brown, S. and Cousins, P., 2004. Supply and operations: parallel paths and integrated strategies. Brown, S. and Blackmon, K., 2005. Linking manufacturing strategy to the strategy mainstream: the case for strategic resonance Brown, S., Blackmon, K., and Squire, B., 2007. The contribution of manufacturing strategy involvement and alignment to world class manufacturing performance Brown, S. and Melamed, L., 1993. Experimental Design and Analysis (Quantitative Applications in the Social Sciences) Buhman, C., Kekre, T., and Singhal, J., 2005. Interdisciplinary and interorganizational research: establishing the science of enterprise networks Cleveland, G., Schroeder, R.G., and Anderson, J.C., 1989. A theory of production competence. Dangayach, G.S. and Deshmukh, S.G., 2001. Manufacturing strategy: literature review and some issues Das, S.R. and Joshi, M.P., 2007. Process innovativeness in technology services organizations: roles of differentiation strategy, operational autonomy and risk-taking propensity Das, T.K., 1991. Time: the hidden dimension in strategic planning. Long Range Planning, 24 (3), 49–57. Dess, G.D. and Robinson Jr, R.B., 1984. Measuring organizational performance in the absence of objective measures: the case of the privately-held firm and conglomerate business unit. Dowell, G. and Swaminathan, A., 2006. Entry timing, exploration, and firm survival in the early U.S Droge, C., Vickery, S., and Markland, R.E., 1994. Sources and outcomes of competitive advantage: ¨ Ferdows, K. and De Meyer, A., 1990. Lasting improvements in manufacturing performance: in search of a new theory Flynn, B. and Flynn, E., 2004. An exploratory study of the nature of cumulative capabilities. Journal of Operations Management, 22 (5), 439–457. Flynn, B.B., Schroeder, R.G., and Flynn, E.J., 1999. World-class manufacturing: an investigation of Hayes and Wheelwright’s foundation Gagnon, S., 1999. Resource-based competition and the new operations strategy. International Journal of Operations & Production Management, 19 (2), 125–139. Germain, R., Claycomb, C., and Droge, C., 2008. Supply chain variability, organizational structure, ¨ Golden, W. and Powell, P., 2000. Towards a definition of flexibility: in search of the Holy Grail?. Hair, J.F., et al., 1998. Multivariate data analysis. 5th ed. Englewood Cliffs, NJ: Prentice-Hall.

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