Definition of input and output variables to assess operations strategy efficiency frontier

Gabriela Lobo Veiga, Edson Pinheiro de Lima, José Roberto Frega and Sergio E. Gouvea da Costa

International Journal of Productivity and Performance Management, 2020, vol. 71, issue 2, 598-642

Abstract: Purpose - To investigate the relationship between performance frontier and operations strategy. A two-level conceptual framework is proposed based on performance elements that act as output/input variables and delimit the scope of the frontier analysis. Design/methodology/approach - The framework proposition is based on the fourth round of high-performance manufacturing survey data. A representative set of variables for assessing performance based on operations strategy constructs is defined through multivariate data analysis techniques. The main method used is the principal component analysis. Findings - The proposed first-level conceptual framework formalizes the relationships between performance frontier analysis techniques and operations strategy, delimiting the scope and the structural definitions. The second-level conceptual framework defines the constructs of the input and output dimensions for frontier analysis studies. Originality/value - The paper contribution is developed in the gap of market-led orientation to study operations strategy performance frontier since most related literature focuses on capabilities development with a main focus on the resource-based view (RBV) approach. A conceptual framework based on the competitive priorities is therefore proposed to represent the operations strategy in the view of the frontier techniques. The value lies in defining performance measures which are not a straightforward task as the growth of organization competitiveness and complexity require multiple performance measures. A deeper understanding of frontier estimation on the operations strategy context is also provided, contributing to positively influence firms to succeed in the current dynamic competitive environments.

Keywords: Multivariate data analysis; Operations strategy; Performance frontier analysis; Performance measures; Competitive priorities (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijppmp:ijppm-11-2019-0540

DOI: 10.1108/IJPPM-11-2019-0540

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