On theory in operations management

TLDR

Operations management theory has been criticized for its inadequacy. The paper argues that this criticism is overstated, proposes that organized thinking can produce productive theories, and illustrates this with two new theories. The authors discuss general scientific inquiry, then introduce the Theory of Swift, Even Flow to explain cross‑factory productivity differences and the Theory of Performance Frontiers to unify multi‑dimensional factory performance. The theories generate implications that support the benefits of further theory development and empirical testing.

Abstract

Abstract The field of operations management has been criticized for the inadequacy of its theory. We suggest that this criticism may be too harsh, and further, that many building blocks of theory are prevalent in the body of existing research. This paper has two goals. The first is to suggest that careful organization of our thinking can lead to useful, productive theories in operations management that demonstrate all the hallmarks of the familiar theories of natural science. We discuss the nature of scientific inquiry in general terms, and examine the implications for what should be expected from theory in operations management. Our second goal is to illustrate through examples how such theories and their related laws might be developed. Two theories are proposed: the Theory of Swift, Even Flow, and the Theory of Performance Frontiers. The Theory of Swift, Even Flow addresses the phenomenon of cross‐factory productivity differences. The Theory of Performance Frontiers addresses the multiple dimensions of factory performance and seeks to unify prior statements regarding cumulative capabilities and trade‐offs. Implications drawn from the theories are discussed and concluding remarks suggest the advantages of future theory development and test.