The purpose of this paper is to investigate the dynamics of accumulation processes of strategic capabilities in manufacturing, i.e. cost, quality, delivery, and flexibility. By applying a dynamic view, concepts from the literature are tested and shortcomings are identified.
The analysis was conducted with the help of an exploratory system dynamics model that represented a hierarchy of these accumulative capabilities. The exploratory model was parameterized with empirical data from a large international survey of manufacturing plants.
The major finding of this paper is that results from a static analysis can be transferred into a dynamic model, which can be used to test allocation strategies of resources to strategic capabilities.
The practical implications concern the distribution of managerial attention on the four capabilities and the consequences of different distributions.
The value of this paper lies in the insights gained by the transformation of a verbal model into a quantified simulation model, and the learning resulting from simulation experiments.
