"The Impact of Operations Capability on Firm Performance" by K. C. Tan, V. R. Kannan et al.
 

The Impact of Operations Capability on Firm Performance

K. C. Tan
V. R. Kannan, Utah State University
R. Narasimhan

Abstract

We propose that a firm's operations capability is manifested through its new product design and development, just-in-time, and quality-management efforts. Moreover, we propose that operations capability, so defined, directly and positively impacts firm performance. Survey data were used to independently calibrate and validate a structural equation model linking operations capability, a second-order construct, to firm performance. Results provide support for the model and demonstrate a positive relationship between operations capability and firm performance.