A resource-based view of manufacturing strategy and the relationship to manufacturing performance
Article first published online: 10 JAN 2002
Copyright © 2002 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 23, Issue 2, pages 105–117, February 2002
How to Cite
Schroeder, R. G., Bates, K. A. and Junttila, M. A. (2002), A resource-based view of manufacturing strategy and the relationship to manufacturing performance. Strat. Mgmt. J., 23: 105–117. doi: 10.1002/smj.213
- Issue published online: 10 JAN 2002
- Article first published online: 10 JAN 2002
- Manuscript Revised: 11 JUN 2001
- Manuscript Received: 24 MAY 1999
- resource-based view;
- manufacturing strategy;
- manufacturing performance
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.