Abstract
Purpose – The purpose of this study is to investigate the relationships between operations capability, productivity and business performance in the context of environmental dynamism. Design/methodology/approach – A proposed conceptual framework grounded in the resourcebased view (RBV) and dynamic capability view (DCV) is analysed using archival data from 193 automakers in the UK. Findings – The results show that operations capability, as an important dynamic capability, has a significant positive effect on productivity, which in turn leads to improved business performance. The results also suggest that productivity fully mediates the relationship between operations capability and business performance, and that environmental dynamism significantly moderates the relationship between operations capability and productivity. Practical implications – The research findings provide practical insights that will help managers develop operations capability to gain greater productivity and business performance in a dynamic environment. Original/value – Addressing the two important issues of moderation (i.e. environmental dynamism) and mediation (i.e. productivity), this study makes important contributions to the field of operations management by applying the RBV and DCV.
6. Conclusions and suggestions for future research
In conclusion, this study conceptually argues and empirically confirms the relationships among operations capability, productivity and business performance. Our analysis shows that operations capability, as a key dynamic capability, has a significant impact on productivity of operations, which in turn leads to improved business performance. More specifically, we find that a positive influence (i.e. benefits) of operations capability (as the antecedent of productivity) on business performance (as the consequence of productivity) is mediated through productivity of operations. Environmental dynamism significantly moderates the relationship between operations capability and productivity. As an important functional dynamic capability, operations capability can influence productivity more strongly in high dynamic environments. Addressing the two important issues of moderation and mediation, this study makes important contributions to the field of operations management by applying the RBV and DCV. The findings of this study also provide practical insights that will help managers develop operations capability to gain greater productivity and business performance in a highly dynamic environment.
