The multidimensional nature of production competence and additional evidence of its impact on business performance

Purpose – The purpose of this paper is to look into production competence theory by proposing and validating a multidimensional construct, and offering additional empirical evidence regarding the contribution of production competence to business performance.Design/methodology/approach – Production competence is defined as a second‐order factor/construct in terms of five underlying dimensions: cost, flexibility, quality, delivery and environmental protection competence. Different scales are used to measure the construct, validated by a multi‐step process. Data from 274 manufacturing firms and structural equation modelling as the main technique are used for the analysis.Findings – The paper suggests that manufacturing capabilities and their alignment with the competitive priorities pursued must be considered to explain the contribution of manufacturing to business performance. The provided evidence suggests that the manufacturing function significantly contributes to business performance, and enables us to ...

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