The Impact of Market Focus on Operations Practices

Authors

Tritos Laosirihongthong, Thammasat UniversityFollow
Keah-Choon Tan, University of Nevada, Las VegasFollow
Vijay R. Kannan, Utah State University

Document Type

Article

Publication Date

10-15-2010

Publication Title

International Journal of Production Research

Publisher

Taylor & Francis

Volume

48

Issue

20

First page number:

5943

Last page number:

5961

Abstract

A key element of successful organisations is the alignment of their strategy and tactics. This study explores the relationship between a firm’s competitive strategy and its operations practices in the context of a developing economy. Two competitive strategies are examined; a niche market strategy characterised by targeting specific market segments, and a broad market strategy characterised by serving a wide range of market segments. Three sets of operations practices consistent with the adoption of lean manufacturing, Total Quality Management, and relationship development in a supply chain context, are explored. Using survey data from senior managers in Thailand, results show that for firms adopting a niche market focus, competitive strategy directly influences process management and relationship development, which in turn affect workforce commitment. Only workforce commitment has a direct effect on operational performance. In contrast, for firms adopting a broad market focus, competitive strategy directly influences workforce commitment, which in turn affects process management and relationship development practices. It is the latter practices that directly influence operational performance.

Keywords

Business enterprises; Cluster analysis; Competitive strategy; Economic development; Empirical study; Lean manufacturing; Market focus; Market segmentation; Operational performance; Process management; Relationship building; Supply chain management; Total quality management; Workforce commitment

Disciplines

Business | International Business | Operations and Supply Chain Management

Language

English

Permissions

Use Find in Your Library, contact the author, or interlibrary loan to garner a copy of the item. Publisher policy does not allow archiving the final published version. If a post-print (author's peer-reviewed manuscript) is allowed and available, or publisher policy changes, the item will be deposited

Repository Citation

Laosirihongthong, T., Tan, K., Kannan, V. R. (2010). The Impact of Market Focus on Operations Practices. International Journal of Production Research, 48(20), 5943-5961. Taylor & Francis.