Strategic consensus on manufacturing competitive priorities

Strategic consensus on manufacturing competitive priorities

A new methodology and proposals for research

The Authors

Roberto Sarmiento, Cardiff University Innovative Manufacturing Research Centre, Cardiff Business School, Cardiff University, Cardiff, UK

Graeme Knowles, Warwick Manufacturing Group, International Manufacturing Centre, University of Warwick, Coventry, UK

Mike Byrne, Operations Management Division, Nottingham University Business School, The University of Nottingham, Nottingham, UK

Abstract

Purpose – The purpose of this paper is to provide a critical analysis of studies on strategic consensus along manufacturing competitive priorities. Based on this analysis, a new methodology to measure strategic consensus on manufacturing competitive priorities that is more consistent with mainstream operations management theory is proposed. The paper also includes novel proposals for future research. Design/methodology/approach – The new methodology and proposals for research are mainly based on a literature review of previous studies on strategic consensus regarding manufacturing competitive priorities and also on relevant research and works in the field of operations management. Findings – Previous methodologies used to measure strategic consensus regarding manufacturing competitive priorities are mainly based on studies in the business strategy field. Thus, these methodologies are deemed as inadequate in the operations management field. It is also found that there are very few studies that have analysed this topic in the operations management field. Moreover, since the methodologies used in those studies are based on previous research in the field of business strategy, the results of the reviewed papers are considered as questionable. Practical implications – For academics, the paper and its results imply a change in the methodologies and research used to study the issue of strategic consensus on manufacturing competitive priorities. The lack of research into this topic is also observed. More research and studies on this theme are needed. For practitioners, the methodology proposed in the paper could be utilised in order to assess the employees' knowledge of the relationships between manufacturing capabilities inside manufacturing firms. Originality/value – To the best of the author's knowledge, this is the first review paper into this under-researched theme in the operations management field. The paper also presents the first methodology that incorporates mainstream theory and research in the field of operations management into the measurement of strategic consensus on manufacturing competitive priorities.

Article Type:

Literature review

Keyword(s):

Strategic manufacturing; Competitive analysis; Trade-offs.

Journal:

Journal of Manufacturing Technology Management

Volume:

19

Number:

7

Year:

2008

pp:

830-843

Copyright ©

Emerald Group Publishing Limited

ISSN:

1741-038X

1 Introduction

Drawing from the works of several authors, Kellermanns et al. (2006) define strategic consensus as the shared understanding of strategic priorities among managers at the top, middle and/or operating levels of the organisation. The absence of consensus on strategic objectives, and its potential effects on organisations has been a theme of considerable research over the years, particularly in the business strategy field (Bourgeois, 1985; Dess, 1987; Dess and Priem, 1995; Ambrosini and Bowman, 2003). Child (1974, p. 8) states that “the less dispersed top management objectives are and the more agreement there is among senior managers as to which objectives have priority, the more successful the organisation will be in attaining them”. Enhanced performance can result from improved coordination and cooperation within an organisation. Such improved cooperation and organisation emanates from a higher strategic consensus (Kellermanns et al., 2006).

Although considerably less in quantity, researchers in the manufacturing strategy/operations management field have also developed studies that have examined how the lack of consensus along strategic manufacturing competitive priorities (e.g. quality, delivery, flexibility, costs) affects organisational performance. Virtually all these studies have mirrored the methodologies and approaches utilised by researchers in the business strategy field. While this constitutes a first and necessary step, we consider that researchers should include well-grounded and mainstream theory in operations management into the design, methodology and analysis in future studies. Various authors have noted the inadequacy of operations management theory (Swamidass and Newell, 1987; Swink and Way, 1995). In the same vein, Handfield (2002) comments on the lack of theory-driven research in this area, and calls for more rigorous studies that contribute to the theory-building process in the operations management field.