A quantitative theoretical model is proposed to measure how productivity performance can be affected by strategic decisions related to specific competitive priorities.
This study proposes the Primary Transformation Model (PTM) and an equation to measure cause-and-effect relationships between productivity and competitive priorities.
The interdependence between productivity and competitive priorities was studied using the PTM and the proposed model indicates that strategies that improve external performance also impact internal productivity. It was also observed that the compatibility between competitive priorities depends on the initial manufacturing conditions and the implementation method adopted.
The proposed model is theoretical and, as such, is an abstraction of reality and does not consider all possible aspects. It consists of a novel approach that still requires further empirical testing. The PTM provides insights about the trade-offs between productivity and strategic objectives, as well, contributes to the ongoing research on manufacturing strategy and can be further developed in future studies.
The main practical implication is to allow companies to relate their strategic decisions to their productivity performance.
This research also contributes to societal issues by enabling firms to better align strategic objectives and operations, which ultimately allows offering products more suited to the needs of customers, thus making better use of the required resources and favoring economic growth.
The model proposed allows objective assessment of actions aiming at operational efficiency and effectiveness, in addition to providing insights into cause-and-effect relationships between productivity and competitive priorities. The model can also be used in empirical investigations on manufacturing strategy.
