A resource-based view of manufacturing strategy and the relationship to manufacturing performance

Authors

  • Roger G. Schroeder,

    Corresponding author
    1. Carlson School of Management, University of Minnesota, Minneapolis, Minnesota, U.S.A.
    • Operations and Management Sciences Department, 3-150 Carlson School of Management, University of Minnesota, 321-19th Avenue South, Minneapolis, MN 55455, U.S.A.
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  • Kimberly A. Bates,

    1. Joseph L. Rotman School of Management, University of Toronto, Toronto, Ontario, Canada
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  • Mikko A. Junttila

    1. Department of Industrial Engineering and Management, Helsinki University of Technology, Helsinki, Finland
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Abstract

This paper examines manufacturing strategy from the perspective of the resource-based view of the firm. It explores the role of resources and capabilities in manufacturing plants that cannot be easily duplicated, and for which ready substitutes are not available. Such resources and capabilities are formed by employees' internal learning based on cross-training and suggestion systems, external learning from customers and suppliers, and proprietary processes and equipment developed by the firm. Based on data from 164 manufacturing plants, the paper empirically demonstrates that competitive advantage in manufacturing (as measured by superior plant performance) results from proprietary processes and equipment which, in turn, is driven by external and internal learning. The implication is that resources such as standard equipment and employees with generic skills obtainable in factor markets are not as effective in achieving high levels of plant performance, since they are freely available to competitors. The paper also demonstrates the important role of internal and external learning in developing resources that are imperfectly imitable and difficult to duplicate. Copyright © 2002 John Wiley & Sons, Ltd.

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