Supply and Operations: Parallel Paths and Integrated Strategies

Abstract

This paper provides evidence of links between the nature of strategic formulation within firms and subsequent plant performance. The research focuses on how some firms have managed to link operations and supply into an integrated set of mutually supportive strategies. In the current competitive arena firms can no longer rely wholly on internal resource‐based capabilities but must instead form strategic partnerships within what are often complex networks. The paper explores how operations and supply functions have pursued parallel paths but have often not been fully integrated within firms. It is argued that such integration, which forms part of what has been termedstrategic resonance, can reap enormous benefits in terms of plant‐level capabilities for firms.

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