Manufacturing strategy process and organizational knowledge: a cross-country analysis

Abstract

Purpose - This paper aims to analyze manufacturing strategy process (MSP) from a knowledge-based view (KBV) of the firm. MSP considers the ways that manufacturing organizes its resources in order to create/strengthen manufacturing-related capabilities. In this context, managers often are under pressure to find quick answers in highly complex environments. By viewing MSP as a knowledge creation process, managers may choose a company's objectives based upon previous experiences and knowledge. MSP addresses the level of planning and decision making related to building competitive operations capabilities over the long term. Design/methodology/approach - A survey research was used to make cross-country comparison. The constructs were empirically confirmed in both country samples, attesting to measurement invariance. The proposed model was tested in both samples and analyzed the differences between them. Findings - The results suggest that knowledge is a key resource in MSP in both samples. Resource-based orientation presents higher levels of influence over MSP in Brazil. In the Spanish sample the influence of external knowledge in MSP and market performance is more relevant. Research limitations/implications - One limitation of this study is that the Brazilian sample is located in a specific region and therefore some regional characteristics may be present. Another limitation was the use of a questionnaire in two different countries that was originally developed in a non-native language. Practical implications - As a practical implication, manufacturing should seek to integrate the strategic process in order to be more responsive in dynamic environments. Originality/value - The paper uses a cross-country sample for scale validation, which is rare in management research, Manufacturing strategy process was analyzed from a knowledge-based view, bringing new possibilities for academic studies. For managers, the paper highlights the importance of manufacturing developing a proactive role through knowledge integration in cross-functional activities during the strategic process.