Sequences in Developing Operational Capabilities for Competitive Performance – A Critical Review and Practical Implications

Abstract

This article reviews how operations management researchers have developed their understanding of operational capabilities within the service and manufacturing industry with respect to the three established capabilities models, namely tradeoff, cumulative capabilities and the theory of performance frontiers (the integrated model). The purpose of this article is to understand contingencies that may shape capability development strategies in practice and to stimulate further research on the issue using a –critical literature review. The methodology defines the research purpose, crafting inclusion and exclusion criteria, determining search procedures, and synthesizing and reporting key findings from the literature. A total of 61 articles published in the last three decades pertaining to the three models were selected and analyzed. This article produces a number of practical and theoretical insights, which includes often overlooked yet important contingency factors, such as time and technological intensity as well as other structural and environmental considerations, in developing operations capabilities. The findings of the article are useful in gaining a better understanding of the importance of operational capabilities and their evolution. For managers in service and manufacturing industries, the findings can foster informed ways of developing strategies in line with resources.