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Production Competence and Business Strategy: Do They Affect Business Performance?
Author(s) -
Vickery Shawnee K.,
Droge Cornelia,
Markland Robert E.
Publication year - 1993
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1993.tb00482.x
Subject(s) - business , affect (linguistics) , competence (human resources) , knowledge management , process management , industrial organization , marketing , business administration , computer science , management , economics , psychology , communication
The purpose of this article is threefold. First, a comprehensive measure of production competence that assesses the level of support that manufacturing provides for the strategic objectives of a firm is developed. Second, hypotheses relating production competence to several financial measures of business performance are tested using data from a large sample of firms ( n =65) in the furniture industry. Third, the impact of business strategy both directly on performance and as a moderating variable in relation to production competence is analyzed. The results of the study suggest that production competence may have more of an effect on business performance for certain strategies than for others.