Operations Strategy and Operational Competencies in Organizational Performance: A Rapid Review
Keywords:
Operational competencies, operations strategy, organizational performance, theoryAbstract
Increased competition in the business space calls for operations practitioners to make decisions continuously and implement necessary changes to gain and sustain competitive advantage. This rapid review sought to unravel linkages between operations strategy, operational competencies and organizational performance. Based on the core competency theory of strategy, the resource-based view and the open systems theory, it was hypothesized that operations strategy and operational competencies interrelate, and both predict organizational performance. Organizational performance was conceptualized by performance measures of return on investment (RoI), customer satisfaction and inventory turnover. The review established that more research has been done around operations functions in manufacturing compared to the service sector. It was further established that organizational performance highly rests on the existence of capabilities and services of each specific organization and hence, operational competencies mediate the relationship between operations strategy and organizational performance. Additionally, the achievement of a firm’s operations tactics depends highly on its ability to achieve the priorities of cost, quality, speed, flexibility and dependability. Recommendations in line with objectives were presented.
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