A resource-based view of manufacturing strategy and the relationship to manufacturing performance
By: SHROEDER, Roger G
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Contributor(s): BATES, Kimberly A | JUNTTILA, Mikko A.
Material type: 
ArticlePublisher: 2002Subject(s): Resource-based View | Manufacturing Strategy | Capabilities | Manufacturing PerformanceStrategic Management Journal 23, 2, p. 105-117Abstract: This paper examines manufacturing strategy from the perspective of the resource-based view of the firm. It explore the role of resource and capabilities in manufacturing plants that cannot be easily duplicated. and for which ready substitutes are not available. Such resources and capabilities are formed by employees' internal learning based on cross-training and suggestion systems, external learning from customers and suppliers, and proprietary processes and equipment developed by the firm. Based on data from 164 manufacturing plants, the paper empirically demonstrates that competitive advantage in manufacturing (as measured by superior plant performance) results from proprietary processes and equipment which, in turn, is driven, by external and internal learning. The implication is that resources such as standard equipment and employees with generic skills obtainable in factor markets are not as effective in achieving high levels of plant performance, since they are freely available to competitors. The paper also demonstrastes the importa role of internal and external learning in developing resources that are imperfectly imitable and difficult to duplicate
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This paper examines manufacturing strategy from the perspective of the resource-based view of the firm. It explore the role of resource and capabilities in manufacturing plants that cannot be easily duplicated. and for which ready substitutes are not available. Such resources and capabilities are formed by employees' internal learning based on cross-training and suggestion systems, external learning from customers and suppliers, and proprietary processes and equipment developed by the firm. Based on data from 164 manufacturing plants, the paper empirically demonstrates that competitive advantage in manufacturing (as measured by superior plant performance) results from proprietary processes and equipment which, in turn, is driven, by external and internal learning. The implication is that resources such as standard equipment and employees with generic skills obtainable in factor markets are not as effective in achieving high levels of plant performance, since they are freely available to competitors. The paper also demonstrastes the importa role of internal and external learning in developing resources that are imperfectly imitable and difficult to duplicate
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