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從動態競爭觀點審視作業流程管理的創新與改進

2

1. Introduction

When developing an operational process (either manufacturing or service), a firm may

face incumbents with well-established processes that are current industry standards.

Operations management and organization researchers have long investigated the effects of

process improvement and innovation on firm performance (Kim, Kumar, and Kumar, 2012;

Rahmandad, 2012). Although progress has been made in this domain, the existing literature

has a major limitation. While much research has examined a firm

ʼ

s decision to invest in

process improvement capability for short-term survival, or in process innovation capability

for long-term growth (Peng, Schroeder, and Shah, 2008); very few studies have explored

how a new best-practice process emerges to replace an industry

ʼ

s existing best-practice

process (Shepherd and Patzelt, 2013). Well-known examples of best-practice processes

include Craft Production (CP) versus Mass Production System (MPS), and MPS versus

Toyota Production System (TPS). This paper addresses this limitation and argues that

competitive pressure imposed by the existing best-practice process can negatively impact a

follower firm

ʼ

s capability-development trade-offs for building a new best-practice process.

The core proposition that we propose in this study is grounded in two distinctive

theoretical perspectives. The capability theorizing perspective suggests that a firm

ʼ

s

improvement capability facilitates the achievement of its full potential within the current best

practice but that innovation capability creates new industrial operating frontiers (Schmenner

and Swink, 1998; Peng et al., 2008). Various studies have examined the firm

ʼ

s capabilities as

a primary construct to explain firm heterogeneity and sustainable advantage through

effective process management (Boyer, Swink, and Rosenzweig, 2005; Swink and Hegarty,

1998). However, these arguments are problematic as they are based primarily in settings

where capability development trade-offs is determined within the boundary of a single firm

and overlooks the strategic importance of inter-firm competition. Chen (1996) proposes that

the key driver of any competitive action is a set of strategic variables centered on awareness,

motivation, and capability to manage interfirm rivalry. This competitive dynamics

perspective suggests that process failure occurs when firms are unaware of and/or incapable

of coping with possible retaliations from rivals (Schmenner and Swink, 1998; Ferrier, Smith,

and Grimm, 1999). It is the missing piece in the operations management literature that

captures the competitive dynamics of process improvement and innovation.

This study views the dynamics of process development and management as an

evolution of

process competition

; that is, a firm improves and innovates its processes by

considering rivals

ʼ

reactions and their resulting effects on its operations strategy. This notion