International Journal of Production Research
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.
K.C. Tan, V.R. Kannan, R. Narasimhan, ‘The Impact of Operations Capability on Firm Performance’,International Journal of Production Research, 45 (21), 2007