An Evaluation of Critical Capabilities and Improvement Areas for Competitive Manufacturing in a Developed-Country Environment

Ivana Ascic, Josip Ascic, Per Hilletofth, Márcio Lopes Pimenta and Olli-Pekka Hilmola
Additional contact information
Ivana Ascic: Department of Industrial Engineering and Management, School of Engineering, Jönköping University, P.O. Box 1026, SE-551 11 Jönköping, Sweden
Josip Ascic: Department of Industrial Engineering and Management, School of Engineering, Jönköping University, P.O. Box 1026, SE-551 11 Jönköping, Sweden
Per Hilletofth: Department of Industrial Engineering and Management, School of Engineering, Jönköping University, P.O. Box 1026, SE-551 11 Jönköping, Sweden
Márcio Lopes Pimenta: Management and Business College, Federal University of Uberlandia, Av. João Naves de Ávila, 2121, Uberlândia 38400-902, Brazil
Olli-Pekka Hilmola: Kouvola Unit, LUT University, Tykkitie 1, FIN-45100 Kouvola, Finland

Sustainability, 2022, vol. 14, issue 11, 1-20

Abstract: This research evaluates the critical capabilities and improvement areas for competitive manufacturing in a developed-country environment. A multiple-case-study approach is applied, consisting of three manufacturing firms located in Sweden. The case study combines both quantitative and qualitative evaluations of the critical capabilities found in the extant literature. The research reveals fifteen critical capabilities and sixteen improvement areas for competitive manufacturing in a developed-country environment. The results show that the firms develop capabilities in a cumulative manner, starting with cost and quality, continuing with time and flexibility, and finally trying to improve innovation and sustainability. To develop competitive manufacturing operations in developed counties, it is therefore vital to improve capabilities related to time, flexibility, innovation, or sustainability. Irrespective of the targeted capabilities, they must contribute to cost-efficient operations and high quality must always be maintained. The efforts to develop capabilities related to innovation and sustainability may be expensive in the short term, however they can provide better cumulative results and competitiveness in the long term.

Keywords: manufacturing strategy; capabilities; developed countries; Sweden (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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