Empirical investigation of alternate cumulative capability models: a multi-method approach

Abstract

Quality (Q), delivery (D), flexibility (F) and cost (C) may reinforce each other to form specific models of cumulative capability. Previous empirical studies reveal two dominant models of cumulative capabilities (Q–D–F–C and Q–D–C–F) without testing whether other models could better fit their data. The present study fulfils this gap and conducts a comparative analysis by testing various models of cumulative capabilities based on a survey of 368 Thai manufacturing plants, and concludes that Q–D–C–F is the best-fit model and further extends the models to reveal ‘simultaneous’ cumulative capability. The contributions are threefold. First, multiple methods are applied to robustly search for the best-fit model. Second, direct and indirect links between capabilities are revealed to add insights into the cumulative reinforcement patterns among capabilities. Third, we show that the widely accepted sand-cone model (Q–D–F–C) and competitive progression theory are not necessarily the dominant approaches for explaining cumulative capability patterns of manufacturers, especially from an emerging country. The results are also significant for practitioners as they understand how capabilities such as quality and delivery can simultaneously improve the next sequential capability.