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Abstract - Quest for Global Competitiveness - Universidad de Puerto ...

Abstract - Quest for Global Competitiveness - Universidad de Puerto ...

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within the production process helps in reducing costs through higher productivity and lowerinventory levels. There<strong>for</strong>e, improving <strong>de</strong>livery capabilities provi<strong>de</strong>s a direct benefit <strong>for</strong> costand flexibility (Größler and Grübner, 2006). Boyer and Lewis (2002, pp. 10) are proponentsof integrative mo<strong>de</strong>l but they report that tra<strong>de</strong>-offs still exist. Noble (1995, pp. 12) reportsnegative correlation between <strong>de</strong>livery and flexibility and offers the explanation that in or<strong>de</strong>r<strong>for</strong> <strong>de</strong>livery to be reliable, inventory levels have to be higher which then reduces flexibility. Inlater work Noble (1997, pp. 93) finds negative correlation not only among <strong>de</strong>livery andflexibility but also <strong>de</strong>livery and innovation. Kathuria (2005, pp. 5) finds a positive relationbetween flexibility and all others competitive priorities. Mapes et al. (1997, pp. 1028) findnegative correlation between flexibility and all other competitive priorities includinginnovation.Größler and Grübner (2006, pp. 459) pose three unresolved research questions: of whichnature, strength and direction are these tra<strong>de</strong>-offs? What dynamic consequences result fromthese tra<strong>de</strong>s-offs? Are there capabilities that support each other, i.e. capabilities betweenwhich no tra<strong>de</strong>-offs or even cumulative effects exist? They find that tra<strong>de</strong>-offs still exist buttheir amplitu<strong>de</strong> has <strong>de</strong>creased due to technological and organizational improvements. Theyanalyzed only the four core competences and find positive correlation between all capabilitiesexcept between cost and flexibility.The second question is which core competences are dominant and most important to analyze?Most textbooks and researchers named only the basic four: (1) quality, (2) costs, (3)<strong>de</strong>pendable <strong>de</strong>livery and (4) flexibility. Yet, in recent Operations management textbooks newcompetitive priority (5) innovation has emerged (see Chase et al, 2006, pp. 26-27). Größlerand Grübner (2006, pp. 458) report two additional competences, that is innovativeness an<strong>de</strong>nvironment soundness.Leachman et al. (2005, pp. 851) in introduction of their work state that companies have tofirst i<strong>de</strong>ntify their core competences and then rate their competitive priorities relative to theircompetitors. Which are core manufacturing competences is still not answered (Boyer et al.2005, pp. 444). So the question is: which are today’s dominant manufacturing corecompetences. Manufacturing core competences are changing in numbers and in their relativeimportance in time. For example in Minnor et al. (1994, pp. 17), four core competences areinvestigated – cost, quality, <strong>de</strong>livery and flexibility and flexibility in that research emerged asmost important competitive priority.~ 5 ~

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