Operations strategy and organizational performance: an empirical study

Abstract

Presents the result of a survey of US firms examining the effect of operations strategies on organizational performance. Seven commonly used operations strategies were considered. Eleven criteria were used to measure organizational performance. The results suggest that companies which are using various operations strategies have higher performance than those which are not using those strategies. While using more than one strategy improves organizational performance, the benefits become marginal after several successive additions. This suggests that for an organization to be competitive, it only has to employ a few appropriate and effective strategies. Also, except for just‐in‐time strategy, large firms are more likely to employ various operations strategies than their smaller counterparts.