Definition of input and output variables to assess operations strategy efficiency frontier

• Published in: International journal of productivity and performance management Vol. 71; no. 2; pp. 598 - 642
• Main Authors: Veiga, Gabriela Lobo, Pinheiro de Lima, Edson, Frega, José Roberto, Gouvea da Costa, Sergio E
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Publishing Limited 21.01.2022; Emerald Group Publishing Limited
• Subjects: Business competition; Competition; Competitive advantage; Data analysis; Data envelopment analysis; Economies of scale; Efficiency; Linear programming; Manufacturing; Market positioning; Multivariate analysis; Operations management; Principal components analysis; Strategy; Variables; Operations strategy; Performance frontier analysis; Performance measures; Competitive priorities; Multivariate data analysis
• ISSN: 1741-0401; 1758-6658
• DOI: 10.1108/IJPPM-11-2019-0540

PurposeTo investigate the relationship between performance frontier and operations strategy. A two-level conceptual framework is proposed based on performance elements that act as output/input variables and delimit the scope of the frontier analysis.Design/methodology/approachThe framework proposition is based on the fourth round of high-performance manufacturing survey data. A representative set of variables for assessing performance based on operations strategy constructs is defined through multivariate data analysis techniques. The main method used is the principal component analysis.FindingsThe proposed first-level conceptual framework formalizes the relationships between performance frontier analysis techniques and operations strategy, delimiting the scope and the structural definitions. The second-level conceptual framework defines the constructs of the input and output dimensions for frontier analysis studies.Originality/valueThe paper contribution is developed in the gap of market-led orientation to study operations strategy performance frontier since most related literature focuses on capabilities development with a main focus on the resource-based view (RBV) approach. A conceptual framework based on the competitive priorities is therefore proposed to represent the operations strategy in the view of the frontier techniques. The value lies in defining performance measures which are not a straightforward task as the growth of organization competitiveness and complexity require multiple performance measures. A deeper understanding of frontier estimation on the operations strategy context is also provided, contributing to positively influence firms to succeed in the current dynamic competitive environments.