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Operations Practices and Competitive Priorities: Impact of the Operations Strategy on Performance

Author Affiliations

  • 1Rey Juan Carlos University, P Artilleros, s/n 28032 Madrid, SPAIN

Res. J. Recent Sci., Volume 4, Issue (11), Pages 103-114, November,2 (2015)

Abstract

Despite the significant attention that part of the literature has devoted to the operations strategy, most studies analyse the different variables involved in isolation. This paper proposes a theoretical model to identify the causal relations between three key variables in operations management: operations practices, competitive priorities, and firm performance. The data for this study come from Spanish industrial firms belonging to various sectors of activity, and the hypotheses are tested using structural equations analysis. The more important findings are that if firms design an operations strategy on the basis of a greater number of structural and infrastructural practices, they will be able to improve their competitive advantages in operations. The results also show that competitive priorities in operations can have a direct, positive effect on firm performance.

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