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Aligning operational practices to Operational


practices and
competitive strategies to enhance competitive
strategies
the performance of Indian
manufacturing firms 131
Saumyaranjan Sahoo Received 30 March 2020
Revised 5 July 2020
Jaipuria Institute of Management Jaipur, Jaipur, India 27 July 2020
3 August 2020
Accepted 11 August 2020
Abstract
Purpose – The main purpose of this study is to understand how collective operational practices are adapted or
stimulated by a firm’s competitive strategy.
Design/methodology/approach – This study employed a data set drawn from 124 plant managers and
directors of Indian manufacturing firms. Multiple regression was used to examine the impact of operational
practices of lean, total quality management (TQM) and supply chain management (SCM) within competitive
clusters of cost leadership, differentiation and focus strategy.
Findings – Results of the study show that the pattern of impact of operational practices on firm’s performance
varies according to type of the competitive strategy employed. All the three competitive strategy clusters have
reported that TQM is the most important trigger for Indian manufacturing firms with relative effect of TQM
practices on firm’s performance being higher than that of lean and SCM practices.
Research limitations/implications – Cross-sectional data from Indian manufacturing firms were used, and
it would be interesting to test the analytical framework of the study for more sectors and countries. Future
studies can take a longitudinal research approach to strengthen the findings of the study.
Practical implications – The findings explain how operational practices are aligned with competitive
strategies for practitioners so that they can assign limited resources to build diverse operational capabilities
based on their strategic choices.
Originality/value – Although very few classical studies are reported in various contexts involving
competitive strategy, operational practices and firm’s performance, no existing study focuses on how these
three domains are linked together in the context of Indian manufacturing sector.
Keywords Competitive strategy, Lean, Total quality management, Supply chain management, Contingency
theory, Resource-based view
Paper type Research paper

1. Introduction
Recent trend of globalization challenges manufacturing firms to become more than ever
competitive (Hallgren and Olhager, 2009; Jung et al., 2009; Yunis et al., 2013; Deif and Beek,
2019). In response to such rapidly changing marketplace environment, most firms are likely
to form a business strategic orientation in response to their market reality and this strategic
orientation is about the business direction and objectives driven by the top management of
the firm (Morgan and Strong, 2003; Hong et al., 2014). Competitive strategies are concerned
about how a firm develops a competitive advantage in an industry relative to its competitors
(Danso et al., 2019). Competitive priorities of a company are measures of market
competitiveness (external) and operational competence (internal) (Singh et al., 2008). With
the emergence of several operational improvement philosophies, the alignment of firm’s
competitive strategy (external) and operational practices (internal) becomes a challenging
new task (Qi et al., 2011; Kharub et al., 2019). Competitive strategy refers to the basis on which
Benchmarking: An International
a firm can achieve and maintain a competitive advantage through differentiation, cost Journal
leadership or focus (Porter, 1980; Miller and Roth, 1994; Qi et al., 2011; Jayaram et al., 2014; Vol. 28 No. 1, 2021
pp. 131-165
Herzallah et al., 2017). A firm’s competitive strategy drives its manufacturing (or operational) © Emerald Publishing Limited
1463-5771
strategy leading to operations decision that results in some desired business performance DOI 10.1108/BIJ-03-2020-0128
BIJ (Prajogo and Sohal, 2006; Amoaka-Gyampah and Acquaah, 2008; Qi et al., 2011; Jayaram et al.,
28,1 2014; Kharub et al., 2019).
In operations management (OM) literature, three operational practices namely lean
practices (LEAN), total quality management practices (TQM) and supply chain management
practices (SCM) are widely adopted by manufacturers in developed countries, and share a
common theme consistent with sustainable creation of customer value and continuous
improvement that are replicable across a variety of departments, projects, processes and
132 products within an organization and across the value chain (Jayaram et al., 2014). The
alignment between the firm’s competitive strategy and operational practices has gained
considerable attention since Skinner’s (1969) seminal article. One assumption is that the
competitive strategy and operational practices of the organization complement each other
basically as both are considered to establish a competitive advantage for the business that is a
cumulative outcome of deliberate actions and decisions made by senior management
personnel and several employees from various functional departments on a regular basis and
over the years (Jayaram et al., 2014; Dubey et al., 2018). The development of operational
strategies in alignment to firm’s competitive strategy can serve to improve and tailor the
product offering for customers as well as improve the internal efficiency and effectiveness of
manufacturing plants (Robson et al., 2013). Therefore, an operational strategy is a subset of a
firm’s competitive strategy.
However, in OM literature, there are conflicting pieces of evidence concerning the strategic
orientation that drives a firm’s business performance. One group of scholars argue that TQM
fits the differentiation strategy (Prajogo and Sohal, 2006; Prajogo, 2007; Amoaka-Gyampah
and Acquaah, 2008; Jung et al., 2009; Yunis et al., 2013; Jayaram et al., 2014; Herzallah et al.,
2017), and thus the other group hold that quality is positively related to cost reduction, and
thus TQM supports the cost leadership strategy (Zatzick et al., 2012; Yunis et al., 2013;
Jayaram et al., 2014; Kurt and Zehir, 2016; Herzallah et al., 2017; Kharub et al., 2019). While
Hallgren and Olhager (2009) have argued that lean practices fit the cost leadership strategy.
To the contrary, Jayaram et al. (2014) have argued that operational practices of lean are not
related to the competitive strategy of cost leadership and differentiation. However, in their
research, they found that the operational practices of SCM are positively related to the
competitive strategy of differentiation and focus. More importantly, the OM literature has
shown conflicting arguments concerning the strategic orientation that drives quality
management adoption, particularly between differentiation and cost leadership. While
numerous classical studies (Table 1) are conducted in different contexts involving
competitive strategy, operational practices and the performance (FP) of the firm,
researchers either reported ambiguous results or did not focus on how these three
management domains are linked together. Research has also been deficient in understanding
the linkages between competitive strategy and operational practices in emerging economies
such as India (Shavarini et al., 2013; Jayaram et al., 2014; Bayraktar et al., 2016; Kharub et al.,
2019). As a consequence, the confusion and ambiguity about the linkages between
competitive priorities and operational practices seriously inhibit its effective dissemination in
the practical world.
The increased competition brought about by globalization and economic reforms requires
that manufacturing companies in India and similar dynamic environment not only have to
develop appropriate strategies but they also need to understand how these strategies affect
performance. In economic environments when manufacturers are undergoing several
changes, Hayes (1985) argued that building operational competence can be a means by which
their competitive strategy can be developed and leveraged to enhance the firm performance
(FP) (Amoaka-Gyampah and Acquaah, 2008). In many cases, manufacturing firms are not
able to adapt an operational approach to their unique competitive priorities, which results in a
lack of strategic alignment (Brown et al., 2007; Shavarini et al., 2013; Yunis et al., 2013;
Sr. Article – Author (Year) and
No. research objectives Variables (constructs) of the study Research approach/Methodology Research findings

1 (1) Prajogo and Sohal (2006) (1) Organization strategy (1) Empirical survey data of 194 (1) TQM practices shown to have a significant and
(2) To examine the (differentiation strategy/cost Australian firms (manufacturing positive relationship with differentiation
relationship among leadership strategy) and non-manufacturing) strategy
organization strategy, (2) TQM practices (leadership, (2) Survey data were collected from (2) TQM practices shown to have an insignificant
TQM, and organizational strategic planning, customer middle/senior-level managers (no) relationship with cost leadership strategy
performance focus, information and (3) Survey data analyzed using (3) TQM practices and differentiation strategy are
(3) To examine the mediating analysis, people management structural equation modeling significantly and positively related to three
role of TQM between and process management) organizational performance measures
organization strategy and (3) Organizational performance (4) Cost leadership strategy is shown to have an
organizational (product quality, product insignificant (no) relationship with three
performance innovation and process organizational performance measures
innovation) (5) TQM partially mediates the relationship
between differentiation strategy and
organizational performance measures
2 (1) Prajogo (2007) (1) Competitive strategy (1) Empirical survey data of 102 (1) Quality performance is strongly predicted by
(2) To examine the link (differentiation strategy/cost Australian manufacturing firms differentiation strategy
between quality leadership strategy) (2) Majority of the respondents was (2) Cost leadership strategy did not show a
performance and two (2) Quality performance small- and medium-sized significant effect on quality performance
competitive strategies (reliability, performance, enterprises (3) Examining the co-alignment between cost
(cost leadership and durability and conformance to (3) Survey data were collected from leadership and differentiation strategy, the
differentiation) specification) middle/senior-level managers results of the study indicate that when cost
(3) To examine the co- (4) Statistical tools such as bivariate leadership is high, the positive relationship
alignment between correlation and hierarchical between differentiation and quality
differentiation and cost multiple regression was used to performance is stronger
leadership strategies in examine the hypothesized
predicting quality relationship between competitive
performance strategy and quality
performance

(continued )
strategies
competitive
Operational

133
practices and

and operational
Research evidences on

competitive strategy,
the linkages between
Table 1.

performance
operational practices
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134

Table 1.
Sr. Article – Author (Year) and
No. research objectives Variables (constructs) of the study Research approach/Methodology Research findings

3 (1) Amoaka-Gyampah and (1) Competitive strategy (1) Empirical survey data of 180 (1) Competitive strategy of a firm is positively
Acquaah (2008) (differentiation strategy/cost manufacturing and service associated with manufacturing strategy
(2) To examine the leadership strategy) organizations in Ghana (2) Out of four manufacturing strategy
relationship between (2) Manufacturing strategy (cost, (2) Survey data analyzed using components, only quality appears to influence
manufacturing strategy delivery, flexibility and quality) structural equation modeling firm performance
and competitive strategy (3) Firm performance (market (3) Competitive strategy does not directly affect
and their influence on firm share and sales growth) firm performance, it does so indirectly through
performance quality
(4) Among the four manufacturing strategy
components, a low-cost manufacturing
strategy provides the strongest link with cost
leadership strategy
(5) All the four manufacturing strategy
components are strongly related to
differentiation strategy, the strongest links are
with quality and flexibility
4 (1) Hallgren and Olhager (1) Competitive intensity of (1) Empirical survey data collected (1) Competitive intensity positively impacts both
(2009) industry from 211 manufacturing plants cost leadership (moderate impact) and
(2) To investigate internal (2) Competitive strategy (from electronics, machinery, and differentiation (weak impact) as competitive
and external factors that (differentiation/cost leadership) auto suppliers operating sectors) strategies
drive the choice of lean and (3) Operations characteristics located in Austria, Finland, (2) The choice of a cost leadership strategy fully
agile operations (lean/agile) Germany, Japan, South Korea, mediates the impact of competitive intensity of
capabilities and their (4) Operational performance (cost, Sweden and USA industry as a driver of lean manufacturing
respective impact on quality, delivery and flexibility) (2) Survey data analyzed using (3) Agile manufacturing is directly affected by
operational performance structural equation modeling both internal and external drivers, i.e. a
(3) To analyze the differences differentiation strategy as well as the
between lean and agile competitive intensity of the industry
manufacturing practices (4) Lean manufacturing is positively associated
with cost leadership strategy (moderate) and
differentiation strategy (weak)

(continued )
Sr. Article – Author (Year) and
No. research objectives Variables (constructs) of the study Research approach/Methodology Research findings

(5) Agile manufacturing is positively associated


(moderate) with differentiation strategy and
negatively associated (moderate) with cost
leadership strategy
(6) Lean manufacturing has a significant impact
on cost performance (while agile
manufacturing has not)
(7) Agile manufacturing has a stronger
relationship with volume and product mix
flexibility (while lean manufacturing has not)
5 (1) Jung et al. (2009) (1) Competitive strategy (1) Empirical survey data collected (1) The direct relation between competitive
(2) To explore the relationship (differentiation strategy/cost from multinational companies strategy of the organization and CIIPM is not
between competitive leadership strategy) with international project significant
strategy, TQM and (2) TQM practices (employee management experiences (2) Differentiation strategy has a stronger impact
continuous improvement relations, leadership, customer/ operating in US, Mexico, Korea on TQM practices
of international project supplier relations and product/ and China (3) Cost leadership strategy has a weaker impact
management (CIIPM) process management) (2) Survey data were collected from on TQM practices
(3) CIIPM measures (continuous 268 middle/senior-level (4) Competitive strategy does not directly affect
improvement in project managers CIIPM, it does so indirectly through TQM
management performance, (3) Survey data analyzed using
continuous improvement in structural equation modeling
project management processes,
continuous improvement in
project management maturity
and improvement in project
teamwork)

(continued )
strategies
competitive
Operational

135
practices and

Table 1.
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136

Table 1.
Sr. Article – Author (Year) and
No. research objectives Variables (constructs) of the study Research approach/Methodology Research findings

6 (1) Qi et al. (2011) (1) Competitive strategy (1) Empirical survey data collected (1) The results of the study show significant
(2) To investigate the (differentiation/cost leadership) from Chinese manufacturing moderating effects of external environment on
relationships among (2) Environmental uncertainty firms the relationship among competitive strategy,
competitive strategy, (demand uncertainty, supply (2) 604 responses were collected supply chain strategy and business
supply chain strategy, and uncertainty, and technological from middle/senior-level performance
business performance uncertainty) managers (in most case plant (2) Firms that primarily focus on a differentiation
while examining the (3) Supply chain strategy (lean manager, general manager, strategy emphasize an agile supply chain
moderating effect of supply chain strategy and agile president or production strategy
environmental uncertainty supply chain strategy) manager) (3) Cost leaders are inclined to implement both
(4) Business performance (return (3) Survey data analyzed using lean and agile supply chain strategies, but their
on investment, return on assets, structural equation modeling emphasis on agile strategy is significantly
market share, growth in ROI, greater in a volatile environment than in a
growth in ROA and growth in stable environment
market share (4) The choice of supply chain strategy does not
appear to be an “either-or” decision and firms
could adopt either a lean or an agile strategy, or
both, depending on the environment
7 (1) Zatzick et al. (2012) (1)Performance (1) Survey data collected from 780 (1) TQM is positive related to performance of cost
(2) This paper explores how (2)TQM Canadian manufacturing firms leaders
fit with the organization’s (3)Cost leadership (2) Use of longitudinal data for (2) TQM is negatively related to performance of
strategic orientation (4)Differentiation analysis differentiators
relates to performance (5)Layoff rate (3) Survey data analyzed using
following TQM (6)Prior performance hierarchical ordinary least
implementation (7)Union density square (OLS) regression
(8)Organization size statistical tool
(9)Multisite operations
(10) Organization age
(11) New technology
implementation
(12) Compete internationally
(13) Compete nationally

(continued )
Sr. Article – Author (Year) and
No. research objectives Variables (constructs) of the study Research approach/Methodology Research findings

8 (1) Yunis et al. (2013) (1) Cost leadership strategy (low (1) Survey data collected from (1) TQM influences strategy formulation process
(2) To examine the role of prices, price-cut decisions and companies located in USA, and it is dynamic resources that contributes to
TQM in strategy-TQM- cost control system) Mexico, Korea and China the achievement of a sustainable competitive
performance relationship (2) Differentiation strategy (2) 268 responses were collected advantage
model (aggressive competition, from middle/senior-level (2) Soft TQM has a higher impact than hard TQM
(3) Theoretical Support: innovation and risk taking) managers on competitive strategy formulation and on
Resource-based view of (3) Quality management (3) Survey data analyzed using performance
firm theory and (leadership, customer/supplier structural equation modeling (3) Soft TQM is positively related to both cost
contingency theory relationship, employee relations leadership strategy and differentiation
and product/process strategy
management) (4) Hard TQM is not significantly related to both
(4) Operational performance cost leadership strategy and differentiation
(continuous improvement, strategy
meeting specification, timely
delivery and within budget)
9 (1) Jayaram et al. (2014) (1) Business strategy (cost (1) Survey data collected from 329 (1) The operational practices of TQM, Lean and
(2) To examine the direct leadership, differentiation and Thai manufacturing firms SCM are significantly associated with
influence of three types of focus) (2) Survey data were collected from operational performance
operations management (2) Operations practices (TQM, middle/senior-level managers (2) Operational practices of TQM are positively
practices, namely TQM, lean, and SCM) (3) Survey data analyzed using related to cost leadership strategy (strong) and
Lean and SCM on (3) Operational performance hierarchical cluster analysis and differentiation strategy (moderate)
operational performance (ability to deliver on time, multiple linear regression (3) Operational practices of TQM are not related to
(3) To understand whether manufacturing/production statistical tool business strategy of focus
the relationship between costs and overall efficiency) (4) Operational practices of lean are positively
operations management related to business strategy of focus
practices and operational (5) Operational practices of lean are not related to
performance varies by the cost leadership and differentiation
type of business strategy (6) Operational practices of SCM are positively
being pursued by the related to business strategy of differentiation
organization and focus

(continued )
strategies
competitive
Operational

137
practices and

Table 1.
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138

Table 1.
Sr. Article – Author (Year) and
No. research objectives Variables (constructs) of the study Research approach/Methodology Research findings

(4) Theoretical Support: (7) Operational practices of SCM are negatively


Contingency theory and related to cost leadership strategy
institutional theory
10 (1) Kurt and Zehir (2016) (1) Competitive strategy (cost (1) Survey data collected from 142 (1) Cost leadership strategy is positively related to
(2) To examine the leadership strategy) Turkish medium and large-sized TQM practices
relationship between cost (2) TQM practices (participation of manufacturing firms (2) Cost leadership strategy is positively related to
leadership strategy, total employees, leadership, decision (2) Survey data was collected from financial performance with TQM practices as
quality management making, education, process 449 middle/senior-level the mediator
practices and firm’s approach, relations with managers
financial performance suppliers, customer focus and (3) Survey data analyzed using
(3) Theoretical Support: continuous improvement structural equation modeling
Resource-based view of approach) and AMOS
firm theory and (3) Financial performance
positioning theory
11 (1) Herzallah et al. (2017) (1) QM practices (quality (1) Survey data collected from 205 (1) Quality ambidexterity is positively related to
(2) To examine the ambidexterity, quality Palestinian industrial firms three competitive strategy
relationship between exploitation, quality (2) Survey data analyzed using (2) Competitive strategy of cost leadership and
quality ambidexterity, exploration, customer focus, structural equation modeling differentiation are positively related to
competitive strategy and process management, and AMOS financial performance, whereas competitive
firm performance teamwork and training) strategy of focus is not significantly related to
(3) To analyze the (2) Competitive strategy (cost financial performance
combination of quality leadership, differentiation, and (3) Balanced combination with similar levels of
exploitation and quality focus) quality exploitation and quality exploration is
exploration associated (3) Financial performance found to be suitable for higher levels of
with the different levels of (economic profitability or ROA, competitive strategies implementation,
each competitive strategy financial profitability or ROE, whereas an excess of quality exploration over
percentage of profit over billing quality exploitation is associated with lower
volume, firms market share and levels of strategies implementation
growth in sales)

(continued )
Sr. Article – Author (Year) and
No. research objectives Variables (constructs) of the study Research approach/Methodology Research findings

12 (1) Kharub et al. (2019) (1) Competitive strategy (cost (1) Survey data collected from 245 (1) No direct relationship exists between cost
(2) To examine the impact of leadership) Indian micro, small and medium leadership strategy and firm performances
competitive strategy of (2) Quality management (supplier enterprises (MSMEs) (2) Quality management practices completely
cost leadership on firm management, continuous (2) The respondent firms are ISO mediates the relationship between cost
performances management, information and 9000 certified MSMEs leadership strategy and firm performances
(3) To examine the mediating analysis and design and (3) Survey data analyzed using
role of quality development) structural equation modeling
management practices on (3) Firm performance (product
the relationship between quality improvement and
competitive strategy and process improvement)
firm performances
strategies
competitive
Operational

139
practices and

Table 1.
BIJ Herzallah et al., 2017). Furthermore, the role of competitive strategy in implementing
28,1 operational practices in the context of manufacturing firms is both not clear and evident.
Having regard to the above topic, the author is motivated to clarify how the success of the
company is achieved by aligning competitive strategy with operational practices. However,
the research remains open to debate on the linkages between operational practices and the
performance of the firm, as conflicting findings have been recorded in the literature, in
particular on the ties between competitive strategies, Lean (Bai et al., 2019) and TQM
140 (Valmohammadi and Roshanzamir, 2015) on performance. To summarize, the present study
addresses two primary research questions:
(1) Whether there is a positive relationship between operational practices and firm’s
performance in the context of Indian manufacturing sector?
(2) Whether this relationship varies by the type of competitive strategy being pursued
by the firm?
Hence, the present study examines whether the pattern of operational practice–performance
relationships within three different competitive strategic orientation (according to Porter’s
(1980) classification) that were established in the context of developed countries is also
applicable to the context of developing countries like India. The research paper has been
organized into six sections. Section 1 has been discussed with the introduction to the research
study. Section 2 encapsulates the review of literature, formulation of hypotheses and presents
the research model of the study. Section 3 presents the research methodology of the study.
Section 4 presents the analysis and results of the study. Section 5 includes a discussion of the
findings, discusses the theoretical and practical implications of the findings and concludes
(Section 6) with outlining the limitations of the study and suggestions for future research.

2. Literature review and hypotheses development


This section of the literature review is divided into four sub-sections. Section 2.1 reflects the
theoretical framework for the context of the current study. Section 2.2 presents the discussion
on the existing literature on Lean, TQM and SCM operating practices and their independent
as well as interactional impact on firm performance. Section 2.3 then explores the
classification of competitive strategies by Porter and their relations documented in the
existing literature with operational practices. Section 2.4 then focuses on reviewing past
research that gives evidence of how competitive strategy of cost leadership, differentiation
and focus are associated with bundles of operational practices of Lean, TQM and SCM.
Hypotheses are formulated based upon the discussion in each of subsection (2.1–2.4).

2.1 Theoretical background


This research study explores the proposed research questions by drawing on the resource-
based view of the firm (RBVF) and contingency theory literature for insights in the constructs
and the relationship amongst them as stated in the research questions. The theoretical
foundation from RBVF helped to guide the study. This theory deals with the resource-based
view of the business itself as a starting point (Kurt and Zehir, 2016). The RBVF has been
incredibly popular in strategy and operations management research for several reasons
(Bromiley and Rau, 2016), as it has an extremely compelling logic. Firm’s resources include all
values, skills, organizational processes and knowledge controlled by a company and enable
strategies to increase effectiveness and productivity in the business (Bromiley and Rau, 2016;
Kurt and Zehir, 2016). As an extension of Porter’s Five Forces within the strategic
management literature (Wenerfelt, 1984), the RBVF suggests that a firm’s sustainable
competitive advantage can be reached if internal resources are leveraged to guard against
competitors and other external market forces that may negatively impact performance Operational
(Porter, 1980; Campbell and Park, 2017). Competitive advantage refers to the firm’s capability, practices and
which acquires from the attributes and resources to perform at a higher level within the
industry (Wu et al., 2017). RBVF theorists argued that firms need to achieve competitive
competitive
advantage to give responses to ever-changing market conditions through strategically strategies
deploying resources and functional capabilities within the firm and adding new capabilities
to existing one (Kurt and Zehir, 2016). In brief, the RBVF attempts to explain firm sustainable
competitive advantage as stemming from firm resources that are rare, valuable, hard or 141
impossible to imitate or duplicate and hard to substitute (Bromiley and Rau, 2016; Camanzi
and Giu, 2020). Competitive advantage can be achieved through operational practices such as
lean (Hallam et al., 2018), TQM (Wilson and Campbell, 2018; Ahmed and Ferdousi, 2020), SCM
(Wu et al., 2017) and innovation through product and processes (Terziovski, 2010; Coccia,
2017), among others. It is through these perspectives of RBVF that the current inquiry is
directed.
Contingency theory suggests that “organizational effectiveness results from fitting
characteristics of the organization to contingencies that reflect the situation of the
organization” (Donaldson, 2001; McAdam et al., 2019). Contingencies (also known as
contingency variables) are the characteristics of a particular context, which makes every
situation different from another (Netland, 2015). Using this viewpoint, organizations aim to
enhance their efficiency by improving fitness and alignment using their defined set of
contingency variables (Yunis et al., 2013; Netland, 2015; Lucianetti et al., 2018; McAdam et al.,
2019). This process of fit is viewed as a dynamic and ongoing process especially in fast-
moving business environments (Donaldson, 2006; Daft et al., 2010; McAdam et al., 2019).
Studies in operations management have shown that competitive strategy plays an essential
role in designing and executing an operational structure and allows a company to gain a
competitive advantage (Yunis et al., 2013; Jayaram et al., 2014; Netland, 2015; Acquaah and
Amoako-Gyampah, 2016; Bayraktar et al., 2016; McAdam et al., 2019). The competitive
strategy has been defined as the match an organization makes between its internal resources
and skills and the opportunities and risk created by its external environment (Grant, 1991). In
reality, firms formulate and implement various competitive strategies to achieve either cost
leadership, product differentiation or niche recognition in the marketplace (Porter, 1980;
Porter, 1985; Schlie and Goldhar, 1995; Shavarini et al., 2013; Jayaram et al., 2014). These
instances become meaningful in broad (Industry target) and limited (Segment target) market.
The first dimension represents competitive strategies in terms of market range (strategic
target), i.e. broad or limited and the second dimension represents the resource of competitive
advantage, i.e. low cost or differentiation (Shavarini et al., 2013). Therefore, Porter’s
classification of business (or competitive) strategies is presented by a two-by-two matrix
(Figure 1).
The competitive strategy is defined as the strategy which looks for a preferable
competitive situation for the organization it acts in (Herzallah et al., 2014). It aims to establish
certain levels of profits and sustain that competitive atmosphere of industry (Porter, 1980).

Competitive Advantage

Low Cost Uniqueness

Strategic Industry Target Cost leadership Differentiation Figure 1.


Porter’s three-generic
Target Segment Target strategies
Focus (or Concentration)
BIJ Cost leadership strategy aims to realize the least possible cost of a certain industry and avoid
28,1 the flaws and wastes (Belohlav, 1993; Chung et al., 2010), through reducing operational and
production costs (Porter, 1980, 1985), controlling indirect costs, material supply or product
distribution (Prajogo, 2007), or increasing their capacity utilization and production efficiency
(Fuentes et al., 2006; Herzallah et al., 2014). Differentiation aims to provide better products or
services to satisfy the customer’s need (Belohlav, 1993; Chung et al., 2010; Herzallah et al.,
2014). This strategy includes creating differentiated products or services provided by the
142 firm that is different from the products or services of competitors (Herzallah et al., 2014).
These products or services must be accepted by customers as unique and different from any
products or services which serve the same purpose in the market (Porter, 1980). The focus
strategy targets a small market, especially when the target market is large, profitable and
growing. A focus strategy is usually employed where the company knows its segment and
has competitive product offerings (low cost or uniqueness) to competitively satisfy its needs.
These competitive strategies classified as per Porter’s categorization frames the vision and
mission of a manufacturing firm which in turn guides development of operational systems of
the firm which is used to co-ordinate functional decision making, including the selection of
technologies, suppliers, production planning and control systems, work-force and quality
practices, among others (Bates et al., 1995; Shavarini et al., 2013; Jayaram et al., 2014). This
means that an organization, therefore, has to decide which operational capabilities among
Lean, TQM and SCM are most suitable to support its competitive priorities (Miltenburg, 2005;
Nurcahyo and Wibowo, 2015). Hence, in line with the contingency theory model, the study
aims to examine the propositions suggested in research question 2. Contingency theory is
especially useful when there is a lack of an established overarching theoretical framework
(Simpson et al., 2012; Clercq et al., 2014; Lucianetti et al., 2018) with an emphasis on a
contextually grounded approach based on contingency fit rather than a single best way to
manage an organization (Donaldson, 2001; McAdam et al., 2019). Hence this study explores,
based on the contingency view, the strategic formulation and aspect of top management
choices of implementation of operational practices, which are based on the availability of
resources and an assessment of the internal and external environment in which the
organization competes in the marketplace.

2.2 Relationship between operational practices and firm performance


2.2.1 Lean manufacturing practice and performance. Key principles of lean manufacturing
practices include the identification and elimination of all non-value-added activities (or waste)
and involve employees toward continuous improvement (Ghosh, 2013; Das et al., 2014;
Hallam et al., 2018; Bai et al., 2019; Hernandez-Matias et al., 2020). Lean manufacturing
endeavors to use less of everything: less investment in equipment and tools, less
manufacturing space, fewer workers and less engineering time in product and process
design, among others (Das et al., 2014; Shi et al., 2020). These changes in operational strategy
are associated with increased operational efficiency and effectiveness, which positively
impacts firm’s business performance (Kaynak, 2003; Pramod et al., 2006; Yang et al., 2011;
Belekoukias et al., 2014; Drohomeretski et al., 2014; Hallam et al., 2018; Shrafat and Ismail,
2019). For these reasons, lean has become a popular strategy for improving the
competitiveness of industrial firms (Netland, 2015). While the benefits of lean practices are
well-documented, some of the negative effects of lean on employee outcomes, work
characteristics, product design and an organization’s innovation capability have also been
studied (Lewis, 2000; Parker, 2003; Mehri, 2006; Lindeke et al., 2008; Chen et al., 2010). Lean
manufacturing practices have both negative and positive effects on firm’s performance (FP),
resulting in inconsistent and clouded results (Bai et al., 2019). There is a strong consensus that
implementation of a lean manufacturing system is a prolonged investment that pays off if
done correctly (Netland and Ferdows, 2016). In accordance to this discussion, the researcher Operational
proposes the following hypothesis: practices and
H1a. LEAN practices have a positive and significant impact on FP. competitive
2.2.2 Total quality management and performance. A firm should have customer orientation strategies
and must be aware about expectations before offering any product or service and these
expectations should also be continuously monitored (Sharma and Modgil, 2019). Improving
the quality of an organization’s product and services is fundamental to business success 143
(Androwis et al., 2018; Yaseen et al., 2018; McAdam et al., 2019). TQM is considered as one of
the most important management strategies that participate in gaining the quality of products
and services (Al-Dhaafri and Al-Swidi, 2016). TQM is an integrated management philosophy
and set of manufacturing practices that emphasize continuous improvement, meeting
customer’s requirements, reducing re-work, long-range thinking, increased employee
involvement and teamwork, process redesign, competitive benchmarking, team-based
problem solving, constant measurement of results and closer relationship with suppliers
(Temtime and Solomon, 2002; Wang et al., 2012). The principles and contents of TQM
philosophy would increase a firm’s commitment to quality and if they are applied correctly
enhances the firm’s competitiveness (Youssef and Youssef, 2018; Sharma and Modgil, 2019).
Any decline in customer satisfaction due to poor product and service quality would be a
serious cause of organizational failure (Demirbag et al., 2006; Kafetzopoulos et al., 2015;
Yaseen et al., 2018). A thorough review of TQM literature reveals that the majority of the
literature supports the positive and significant relationship between TQM and firm’s
performance (Miyagawa and Yoshida, 2010; Faisal et al., 2011; Al-Dhaafri et al., 2016;
Androwis et al., 2018). While, other studies have found adverse results (Prajogo and Sohal,
2004; Kannan and Tan, 2005; Kober et al., 2012; Patyal and Koilakuntla, 2018; Cho and
Linderman, 2019). Hence, research articles have reported failure of TQM, which have created
problems serious enough that the survival of the organization was threatened
(Valmohammadi and Roshanzamir, 2015; Talapatra and Uddin, 2019). Therefore, several
inconsistencies are being reported in scholarly articles, which further calls for empirical
examination of relationship between TQM practices and manufacturing firm’s performance.
Thus, the following hypothesis is introduced to be examined:
H1b. TQM has a positive and significant impact on FP.
2.2.3 Supply chain management and performance. Nowadays, production processes are
mostly dispersed around the globe (Seuring and M€ uller, 2008). Organizations are not
competing with each other but with their competitor’s supply chains (Sharma and Modgil,
2019). Irrespective of the business domain, organizations must focus on speed, efficiency and
customer value to be globally competitive (Cudney and Elrod, 2011; Phan et al., 2019). In
recent decades, globalization has offered manufacturers even greater opportunities to lower
costs through sourcing, by capitalizing on the differences in labor and material costs among
regions and countries (Jiang, 2015). To compete among supply chains, it is necessary to have
the best practices that support and create the value in entire value chain (Sharma and Modgil,
2019). Such supply chain practices include strategic supplier relationship, customer
relationship, information sharing and quality (Christopher, 2005; Stadtler, 2015; Sharma
and Modgil, 2019). Effective management of the supply chain is viewed as the driver of
reductions in lead times and material costs, and improvement in product quality and
responsiveness (Kannan and Tan, 2005). The objective governing all endeavors within a
supply chain is seen as increasing competitiveness (Stadtler, 2015; Phan et al., 2019). SCM
seeks to create a stream of activities linked with manufacturers, customers and suppliers that
demand long-term partnership links to be developed (Stock and Boyer, 2009; N€aslund and
Hulthen, 2012). SCM thus helps firms to allocate resources and produce products
BIJ appropriately and proportionately (Oghazi et al., 2018). This will also help firms produce
28,1 products at right time and in the right location by having an integrated network of
manufacturers, suppliers, dealers and warehouses (Vanichchinchai and Igel, 2011; Sharma
and Modgil, 2019). SCM also acts as a means for minimizing total cost while satisfactory
meeting service-level requirements (Marino et al., 2018). Coordinating material, information,
logistics and purchasing functions with manufacturing processes for a multinational large
company in an efficient manner is still a formidable task (Stadtler, 2015). Problems in supply
144 chains can hit businesses negatively. This argument leads to the following hypothesis:
H1c. SCM practices have a positive and significant impact on FP.
2.2.4 Interaction effect of operational practices and performance. Lean, TQM and SCM
represent alternate approaches to improve the competitiveness and efficiency of a
manufacturing firm’s operations. Lean is a manufacturing philosophy which focuses on
“reduction of waste across all functional levels” through the participation of workforce,
whereas TQM seeks to optimize functional processes, rather than the whole system, which
are concerned with quality and customer satisfaction. SCM on the other hand is equally
essential in any business to plan, control and execute a product’s flow, which is essentially the
management of all networks of business processes and activities. While differences in their
motivation and objectives have sometimes led them being represented as being distinct and
separate, it is short-sighted to view them as being unrelated (Kannan and Tan, 2005; Jayaram
et al., 2014). Most quantitative research in operations management have examined a single
dimension of operational practices and its effect on the firm’s performance, while ignoring
evaluation of the interaction between different operational practices on performance. In
reality, “set” or bundles of operational practices consistently appear together to form a
manufacturing strategy and work synergistically to achieve better firm performance (Furlan
et al., 2011; Singh and Ahuja, 2015; Sahoo, 2018). In this context, it is necessary to explore the
relationship between the pairwise interactional effect of operational practices and their
impact on the firm’s performance (Konecny and Thun, 2011). However, to stay competitive,
manufacturing firms continuously need to search and implement best practices through the
adoption of an integrated and coherent system of continuous improvement practices to
improve their performance (Schroeder and Flynn, 2002; Pont et al., 2008).
The philosophy of integrated manufacturing promotes the idea that manufacturing
technologies can work together to boost the production output (Furlan et al., 2011;
Khanchanapong et al., 2014; Dubey and Singh, 2015; Sahoo, 2020). Some studies suggest that,
although Lean and TQM work separately, their combination may yield synergies that lead to
further operational improvements (Belekoukias et al., 2014; Pont et al., 2008; Pramod et al.,
2006; Singh and Ahuja, 2015). Along this line, Dubey and Singh’s research (2015) shows that
Lean and TQM must be used together if zero defects and zero wastes are to be achieved.
However, Konecny & Thun (2011) in a similar study of bundled practices have argued that a
bundled implementation may not necessarily lead to superior performance, as their study
have highlighted a potential reason for this is human-resource-related conflict. In light of
these divergent views, an objective of this research review is to investigate the gaps in
performance contribution between the stand-alone and combined interaction of lean and
TQM practices. Therefore, based upon the above discussion and growing recognition of
future studies to investigate the bundled approach of lean and TQM practices (Belekoukias
et al., 2014; Chiarini and Baccarani, 2016; Ho, 2010a; Ho, 2010b; Jayaram et al., 2014; Modgil
and Sharma, 2016; Sahoo, 2020), the researcher postulates the following hypothesis:
H1d. The interaction of lean and TQM (Lean 3 TQM bundle) has a positive and
significant impact on FP.
When lean and SCM methods in operational management literature are discussed together, Operational
the definition of the lean supply chain is considered. Lean supply chain is about applying lean practices and
principles to the whole supply chain (Nadal, 2017). The lean supply chain approach moves
away from the current “trading mentality”, in which profit targets are short term and highly
competitive
dependent on market prices and the ability to negotiate strongly with suppliers or customers, strategies
to a strategy based on a long-term commitment to supply chain partners, with a cooperative
and systematic waste elimination along the supply chain (Tortorella et al., 2017). Lean
implementation helps SCM by achieving significant improvement in resource productivity 145
(Ruiz-Benıtez et al., 2018). Moreover, leanness in a SC maximizes profits through cost
reductions (Singh and Pandey, 2015). Extending lean principles from manufacturing to SCM
can leverage the SC’s competitiveness further with increased responsiveness to demand
changes and reduced operating costs (Ruiz-Benıtez et al., 2018). However, many organizations
have struggled to implement lean SCM practices due to lack of awareness and improper
implementation approach (Tortorella et al., 2017). The joint influence of lean and SCM
practices on firm’s performance also has not yet been examined in depth (Nadal, 2017;
Tortorella et al., 2017; Ruiz-Benıtez et al., 2018). In order to bridge this research gap, the
following hypothesis is developed in the present study.
H1e. The interaction of lean and SCM (Lean 3 SCM bundle) has a positive and significant
impact on FP.
As management philosophies, both TQM and SCM emphasize customer satisfaction
(Vanichchinchai and Igel, 2009). TQM is an integral part of creating sustainable quality in
products and services throughout the supply chain (Kannan and Tan, 2005; Talib et al.,
2011b; Kaur et al., 2019; Talapatra and Uddin, 2019). TQM adoption in firm’s supply chains
helps to increase inventory turnover, reduce logistics costs, helps firms ensure on-time
delivery, promotes a close collaboration with suppliers and exchange of information through
information technology (Vanichchinchai and Igel, 2011; Sharma and Modgil, 2019). The
literature also reveals that a firm’s TQM approaches and SCM practices complement each
other and need to be integrated to achieve superior financial, manufacturing performance and
supply chain performance (Terziovski and Hermel, 2011; Kaur et al., 2019). The
understanding of the way in which TQM and SCM practices are related and the impact of
their integration on the firm’s performance is still very limited (Zeng et al., 2013; Dellana and
Kros, 2014; Kaur et al., 2019; Sharma and Modgil, 2019). So, in this paper, attempt has been
made to explore the synergy between TQM and SCM practices. Hence the hypothesis follows:
H1f. The interaction of TQM and SCM (TQM 3 SCM bundle) has a positive and
significant impact on FP.

2.3 Relationship between competitive strategies and operational practices


Several research studies on lean practices have sought to discuss the genealogy of lean
production and points out that lean is the result of a dynamic learning process that adapted
practices from the automotive and textile sectors in response to an environment with various
contingencies in Japan after Second World War (Drohomeretski et al., 2014). Lean
manufacturing, often coined as Toyota production system (TPS) in academic literature,
started in Toyota Motor Manufacturing Company after the second world war, when most
Japanese organizations including Toyota were confronted with the challenge of managing
production facilities with limited resources (Liker, 2004; Ghosh, 2013). This challenge
motivated Toyota managers to develop various elements of TPS aimed at reducing waste and
minimizing cost (Ghosh, 2013). Over the years since then, lean has evolved as a
manufacturing method that visually identifies and measures waste resulting from the
inefficiencies, unreliability and/or incapability of information, time, money, space, people,
BIJ machines, material and tools during the transformation process of a product (Belekoukias
28,1 et al., 2014; Hernandez-Matias et al., 2020; Shi et al., 2020). To gain cost leadership, a firm must
execute its production and distribution activities in less expensive ways than its competitors
do (Koren, 2010). Such lean tools and techniques form an important backbone to most well-
structured strategic cost-reduction programs in manufacturing. Low-cost manufacturers
may attract price-conscious buyers in great numbers and may reduce costs further by
increasing economies of scale (Koren, 2010). Since the literature suggest that lean strategies
146 are vital for cost-reduction efforts (Jayaram et al., 2010), therefore it is hypothesized as follows:
H2a. Manufacturing firms pursuing competitive strategy of “Cost Leadership” have a
higher level of association with LEAN operations practices, as compared to TQM
or SCM.
The content of TQM has two basic orientations, namely, the process orientation and customer
orientation (Reed et al., 1996). With customer orientation, manufacturing firms focus on
gaining a market advantage, where they can outperform in terms of attracting more
customers with distinguished products and charge a premium price (Prajogo and Sohal,
2006). Whereas under process orientation, manufacturing firms focus on continuous
improvement, involve and motivate employees to achieve quality output and focus on
satisfying customer’s needs and are more likely to outperform firms that do not have this
focus (Valmohammadi and Roshanzamir, 2015; Androwis et al., 2018). Although not
implicitly stated, this notion suggests that under customer orientation, TQM is associated
with a differentiation strategy (Prajogo and Sohal, 2006). TQM can be applied at all firm
levels, often showing that costs can be reduced and the level of product differentiation is
increased (Abdullah et al., 2008). TQM adopting firms obtain a competitive advantage over
those that do not adopt TQM (Valmohammadi and Roshanzamir, 2015; Kurt and Zehir, 2016;
Modgil and Sharma, 2016; Youssef and Youssef, 2018). Smart demands from customers to
have better quality enforce the organizations to provide products and services with high
quality to meet the expectations of their customers and gain successfulness in the
marketplace (Al-Dhaafri and Al-Swidi, 2016). TQM have a positive impact on firm’s
competitive advantage (Modgil and Sharma, 2016; Youssef and Youssef, 2018). Hence, the
researcher deduces that methodology of TQM is capable of producing a differentiation-based
advantage for the manufacturing firm, therefore postulating the following hypothesis:
H2b. Manufacturing firms pursuing competitive strategy of “Differentiation” have a
higher level of association with TQM operations practices, as compared to LEAN
or SCM.
Pre-liberalization (before 1990), most manufacturers emphasized mass production as the
primary operational strategy to minimize unit cost of production, with little product or
process flexibility, which resulted in slower development of a new product, inefficient in-
house technological development and unbalanced line flow (Tan, 2002). The level of supply
chain integration was very poor and wasn’t a complex ecosystem of supply chain partners, as
it is today. Thereafter, as the competition in the 1990s intensified in India, and markets
became global, so did the challenges associated with getting a product and service to the right
place at the right time, and that too at the lowest cost, rose among all operational concerns of
most manufacturers (Li et al., 2006). There are two broad means for improving the
competitiveness of a supply chain. One is a closer integration (or cooperation) of the
organizations involved and the other is better coordination of material, information and
financial flows (Stadtler, 2015). Although SCM is the essence of every manufacturing
business following a specific competitive strategy, it is assumed by many researchers
(Jayaram et al., 2014; Larsen et al., 2018) that level of supply chain management and
integration with manufacturing firms following a focused strategy are relatively more
complex as compared to firms following a differentiation or cost leadership strategy, as they Operational
are required to concentrate their effort on multiple suppliers and sales channels. This practices and
suggests that a higher level of excellence is achieved when firms focus exclusively on certain
market segments as opposed to mass segments (Jayaram et al., 2014). In benchmarking
competitive
supply chain integration and management, it is assumed that many manufacturing firms strategies
following a focus strategy achieve competitive advantage by leveraging the management of
their multiple suppliers and sales chains, relatively as compared to firms following a cost
leadership or differentiation strategy. Therefore, the following hypothesis is formulated: 147
H2c. Manufacturing firms pursuing competitive strategy of “Focus” have a higher level
of association with SCM operations practices, as compared to TQM or LEAN.

2.4 Relationship between competitive strategies and interaction of operational practices


High-performance manufacturing requires the adoption of an integrated and coherent system
of operational practices, and therefore the interlinkages between various operational
paradigms must be taken into account and explored (Pont et al., 2008; Furlan et al., 2011;
Konecny and Thun, 2011; Singh and Ahuja, 2015; Wickramasinghe and Wickramasinghe,
2017). The literature suggests organization should introduce a bundle of multifaceted
continuous improvement operational practices that work synergistically to minimize waste,
reduce cost, enhance product/service quality and improve manufacturing efficiency (Furlan
et al., 2011; Bortolotti et al., 2015; Wickramasinghe and Wickramasinghe, 2017). Studies by
Pont et al. (2008), Furlan et al. (2011) and Modgil and Sharma (2016) provide unambiguous
evidence that the synergistic effects of lean and TQM practices are associated with better
manufacturing performance. In two research articles (Ho, 2010a, 2010b) authored by Samuel
K.M. Ho, where an integrated lean TQM model was proposed to help organizations overcome
the damages caused by financial tsunami ignited by 2008 oil crisis. In their proposed model
tested in Hong Kong, China and Japan, the lean “5S” models were updated to “5Sþ” by
synthesizing the best practices of TQM, which helped firms to reduce operational cost while
improvising quality standards. This hints, TQM focuses on producing high-quality
competitive products while lean trims costs through close examination of waste processes
(Konecny and Thun, 2011; Jayaram et al., 2014). By eliminating waste in the process and
improving quality, the entire process becomes more efficient. Improvising quality standards
of products/services is an act of differentiation that can promote global sustainability and
manufacturing competitiveness for manufacturing firms, by reducing production and
operational costs. It is not necessary that such a strategy of reducing manufacturing cost by
the firm following a differentiation strategy shall reduce the final price being offered to the
customer. The firm may choose to offer a premium pricing on the differentiated product to
their customers, as long as their product meets customer’s expectation. Based on these
discussions, it is logical to associate lean and TQM practices with a differentiation strategy.
Hence the following hypothesis is proposed.
H3a. The interaction of LEAN and TQM operations practices is more likely to be
associated with the competitive strategy of differentiation rather than cost
leadership or focus.
Competitive priorities are expressed as dimensions of manufacturing strategy, goals for
manufacturing and manufacturing tasks (Shavarini et al., 2013). Supply at the right time,
place and cost is also a critical competitive advantage (Chin et al., 2004; Robinson and
Malhotra, 2005; Vanichchinchai and Igel, 2011). TQM and SCM have been identified as two
most important strategies for manufacturing, which plays an important role in strengthening
organizational competitive priorities and competitiveness in market (Vanichchinchai and
Igel, 2009; Lo et al., 2007). Successful companies over the years have not only fundamentally
BIJ redefined the word “quality”, but have expanded it to supply, service and design quality
28,1 (Kumar et al., 2009). TQM and SCM in any manufacturing unit rely a great deal on suppliers
and their relationship with the organization internally and externally (Talib et al., 2011b).
Incorporating the customer’s requirement into production design and services requires
companies to change the way they treat their customers and manage their supply partners
(Kumar et al., 2009). This requires manufacturing firms to adopt quality management
practices across the entire value chain, including the suppliers’ network. In one research
148 study, Vanichchinchai and Igel (2011) investigated the impact of TQM on SCM and firm’s
supply performance, where they present empirical insights regarding the ability of TQM
practices to directly influence the implementation of SCM practices, which directly enhances
firm’s supply performance. Similarly, Lo et al. (2007) examined the influence of supply quality
management on the quality performance of Chinese manufacturing firms, where they found
quality-conscious management practices speed up the implementation of supplier quality
management (SQM), thereby positively impacting firm’s quality performance. In a recent
research study, Peng et al. (2020) revealed the integration of SCM and TQM has a significant
positive direct influence of organizational results. These evidence from both studies hints that
TQM and SCM are interlinked. TQM and SCM consist, in an integrated approach, of
principles and practices to improve the efficiency of client goods and services and to reduce
logistic costs by integrating the internal functions of the enterprise with external operations
of vendors, customers and other members of the supply chain (Talib et al., 2011b; Peng et al.,
2020). While none of the cited studies specifically discuss the interaction of TQM and SCM
based on strategy type, it is clear that manufacturing firm that seeks to adopt TQM and SCM
simultaneously, prioritize their manufacturing intention to produce quality products
following a low-cost supply structure to compete successfully (Talib et al., 2011b; Jayaram
et al., 2014; Kurt and Zehir, 2016). Hence, it is logical to associate TQM and SCM practices with
a cost leadership strategy. Therefore, the following hypothesis is proposed.
H3b. The interaction of TQM and SCM operations practices is more likely to be
associated with the competitive strategy of cost leadership rather than
differentiation or focus.
To make the best of lean principles, the organization must look for new opportunities (Cudney
and Elrod, 2011). Manufacturing firms in a variety of economic sectors have adopted lean
management in recent decades and in many cases has improved their competitiveness, while
some of them are not able to sustain the performance results (Martınez-Jurado and Moyano-
Fuentes, 2014). This has created an interest among the researcher to examine why they are
unable to sustain performance results. The influence of information technology and
communication among various internal functional groups and external network associates is
equally necessary for lean success (Ward and Zhou, 2006). SCM involves managing complex
flow of information, materials and money across multiple functional areas both within and
among network companies (Faisal et al., 2006). The research literature also points out the
significance of the interaction between LEAN and SCM on manufacturing business
performance (Lee et al., 2008; Cudney and Elrod, 2011). For example, Lee et al. (2008)
integrated TPS (component of lean) and Enterprise Resource Planning (ERP – component of
SCM) in their case study of a South Korean firm and found that utilizing ERP supply chain
system provided more opportunities in aiding the implementation of lean principles. It is also
vital for lean principles and practices to be spread throughout the whole supply chain to
derive potential benefits of lean manufacturing (Martınez-Jurado and Moyano-Fuentes, 2014).
Lean SCM is all about lowering waste and reducing cost as much as possible across the entire
supply chain. In another study, Cudney and Elrod (2011) assessed the integration of lean
philosophy with SCM principles, where they highlighted the benefits gained from suppliers
leaning their processes resulted in significant time and financial benefits. However, they also
highlighted that the majority of firms in their sample are not extending their lean training to Operational
suppliers (Cudney and Elrod, 2011). Further supporting this indication, the researcher practices and
assumes the higher level of interaction of lean and SCM principles is associated with
manufacturing firms with the business domain of niche market customers. In adopting a
competitive
focused strategy, a firm should focus on a few niche markets while simultaneously cut cost strategies
(Jayaram et al., 2014). One of the main challenges that companies following a competitive
strategy of focus are faced with is increased integration with their key suppliers and
customers (Martınez-Jurado and Moyano-Fuentes, 2014). This is why an analysis of lean 149
manufacturing should be addressed both from organizational focus and supply chain focus
(Hines et al., 2004; Martınez-Jurado and Moyano-Fuentes, 2014). Lean principles adoption in
firms practicing focus strategy requires strategic supplier relationship while balancing
cooperation and competition. Therefore, strategic alliances and partnership with suppliers
represent a key feature of lean supply chain management. Lean SCM represents a new way of
thinking about suppliers and other external networks. Therefore, it is evident that lean
principles supported by SCM practices have enabled manufacturing firms to achieve
significant economic benefits while improving quality, costs and cycle time (Cudney and
Elrod, 2011). Manufacturing firm practicing focus strategy, deal with several clientele bases,
and their product offering may vary from one customer to others. Focus on core competencies
has increased the firm’s dependence on outsourcing for both product and services, and
therefore in adopting a focused strategy, manufacturing firms should focus on a specialized
market of customized products/services while simultaneously cutting cost and building
strong alliances with suppliers’ network base. Hence, in this sense, it is logical to associate
focused competitive strategy with lean and SCM. Therefore, the following hypothesis is
proposed.
H3c. The interaction of LEAN and SCM operations practices is more likely to be
associated with the competitive strategy of Focus rather than cost leadership or
differentiation.

3. Research methodology
3.1 Questionnaire design
The researcher surveyed the literature to identify valid measures for constructs of the study
variable and adapted extant items. The researcher submitted the items to academicians and
executives for review and pre-tested them in a sample of about 20 firms with face-to-face
discussions. Based on the feedback, the questionnaire was modified with the wording of some
questions and added or deleted items to ensure that the questionnaire was understandable
and relevant to practices in India. Three dimensions of competitive strategies were adopted in
this study: cost leadership, differentiation and focus. The measurement items for these
competitive strategies were majorly adopted from Hallgren and Olhager (2009), Qi et al. (2011)
and Herzallah et al. (2017). In the questionnaire, the respondents were asked to indicate the
importance of the listed competitive methods with their overall strategy on a five-point Likert
scale (1 – least important and 5 – most important). The measures for lean (Shah and Ward,
2007; Konecny and Thun, 2011; Bortolotti et al., 2015), TQM (Jayaram et al., 2010; Konecny
and Thun, 2011) and SCM practices (Li et al., 2006; Wu et al., 2017) which were mainly adopted
from the mentioned literature. The five constructs of lean practices are autonomous and
preventive maintenance, team-based maintenance, pull production system, technical
emphasis and quick changeovers. TQM is conceptualized using measures of cross-
functional product design, process quality management, quality empowerment, employee
training and quality information usage, whereas SCM is conceptualized using measures of
strategic supplier partnership, customer relationship, level of information sharing, quality of
BIJ information sharing and postponement. The respondents were asked to indicate the extent to
28,1 which operational practices had been implemented by sharing their level of agreement on a
five-point Likert scale (1 – strongly disagree and 5 – strongly agree). The two measures of
firm’s performance, i.e. organizational performance and operational performance, were adopted
from those featured in Kannan and Tan (2005), Li et al. (2006), Belekoukias et al. (2014) and
Al-Dhaafri et al. (2016). The respondents were asked to indicate their performance on these
measures relative to their competitors on a five-point Likert scale (1 – poor or low, 2 – below
150 average, 3 – average or equal to competition, 4 – better than average, and 5 5 superior).
For questions related to measurement aspects of constructs/criteria under each theme,
scoring rubrics were defined for each Likert-type scale, which also served as a guide for
respondents in grading their responses to each question asked by the interviewer. The usage
of Likert scales with rubrics across each section of the assessment tool is an effort to force
respondents to make an exclusive and decisive choice. Questionnaires rated with five-point
Likert scale are simple to answer and are not confusing (Leung, 2011).

3.2 Data collection


To be included in the data collection as a respondent, the company must also meet the
following criteria: (1) registered as large firms under Ministry of Corporate Affairs; (2) had a
legal business identity and operations in India; (3) has ISO compliance certificates and
practicing continuous improvement manufacturing practices since last five years. For the
study, survey data were collected from 124 large manufacturing plants in India. The
responses to the questionnaire were collected by visiting the manufacturing plants and
through personal interaction with senior management personnel, preferably plant managers
and directors. The survey instrument was moderately long and the researcher ensured
effective participation by the respondent by verbally dictating each question in the
instrument and noting and recording their responses. Since the questionnaire was to be filled
by senior management personnel, most of the respondents of the study were identified
through known acquaintances of the researcher, while others were identified through
referrals of already visited respondents. The 124 respondent manufacturing plants were from
operating sectors of food and beverages (17.7%), electrical and electronics (15.3%), metals
and machinery (12.1%), pharmaceuticals (11.3%), automobiles (9.6%), plastic (6.5%), textiles
(5.6%), chemicals (4.8%), cement and ceramics (4%), among others.
The Mann–Whitney test was used to compare the early and late responses for all the
survey items. No significant differences were found in any of the comparisons, indicating a
likely absence of nonresponse bias (Armstrong and Overton, 1977). Because the data were
collected from a single informant within each firm, common method bias was a threat to the
validity of our results. The researcher followed some procedural remedies to avoid common
method bias (e.g. the respondents’ anonymity was protected, the researcher used concise and
simple items) as recommended by Podsakoff et al. (2003). Based on Harman’s one-factor test, it
is found that the unrotated factor solution reveals no single factor, which accounts for more
than 50% of the variance, indicating the non-significance of the issue of common method bias
(Podsakoff et al., 2003).

3.3 Construct reliability and validity


Table 2 summarizes the reliability and validity results for all constructs of the study. For each
construct of the variables, the Cronbach’s α score, Kaiser–Meyer–Olkin (KMO) values and
percentage variance were calculated to gauze the reliability and validity of constructs used in
the study. All constructs that accounted for more than 50% of the variance were retained.
Thereafter, an inter-item analysis is used to check the construct’s scales for internal
consistency or reliability. Cronbach’s reliability coefficient α values for competitive strategies
No. of Cronbach’s KMO %
Operational
Variables Constructs items α value Variance practices and
competitive
Competitive Cost leadership 5 0.812 0.769 62.66
Strategy Differentiation 5 0.865 0.832 65.17 strategies
Focus 4 0.767 0.728 60.50
Lean Practices Autonomous and preventive 5 0.862 0.840 64.44
maintenance 151
Team based maintenance 4 0.809 0.779 63.70
Pull production process flow 6 0.858 0.873 58.73
Technical emphasis 5 0.804 0.830 56.43
Quick changeover 5 0.858 0.819 63.84
TQM Practices Cross-functional product design 5 0.868 0.858 60.58
Process quality management 7 0.873 0.874 56.87
Quality empowerment 4 0.789 0.715 61.45
Organization-wide employee 4 0.794 0.702 61.78
training
Quality information usage 5 0.824 0.841 58.95
SCM Practices Strategic supplier partnership 6 0.861 0.876 59.02
Customer relationship 5 0.851 0.811 62.76
Level of information sharing 6 0.856 0.873 58.31
Level of information quality 5 0.821 0.810 58.39
Postponement 3 0.802 0.706 71.60 Table 2.
Firm’s Operational performance 6 0.827 0.838 53.69 Reliability and validity
Performance Organizational performance 7 0.885 0.876 59.39 of constructs

of cost leadership, differentiation and focus are 0.812, 0.865 and 0.767 respectively. Similarly,
Cronbach’s reliability coefficient α values for each construct of independent variables (i.e.
lean, TQM and SCM) ranged from 0.789 to 0.873. The Cronbach’s α values for the measures of
dependent variable, i.e. operational performance and organizational performance have
α values of 0.827 and 0.885 respectively. Hence, α values of competitive strategy, operational
practices and firm’s performance scales exceeded by a comfortable margin with respect to
0.70 criteria generally considered adequate for exploratory work, thereby exhibiting an
acceptable level of reliability. The validity of these constructs was also gauzed by KMO test
with values greater than 0.60 in each case, demonstrating that all these scales are valid and
reliable for analysis.

4. Analysis and results


Hierarchical cluster analysis was used to classify the respondent firms based on the
competitive strategy being pursued. The three competitive strategy items that inquired
responses from the respondent to indicate the extent to which their firms seek to supply
products at a lower cost to a broad range of market segments (cost leadership), seek to
differentiate products to supply to a broad range of market segments (differentiation
strategy) or seek to develop products for specific customer group only (focused strategy) were
used to cluster the cases. Additional questions were also included in the survey questionnaire
to gauze their competitive intent. There were a total of 124 cases, of which there are 30 cases in
cost leadership cluster, 38 cases in differentiation cluster and 56 cases in focused cluster.
Multiple regression was used to examine the impact of lean, TQM and SCM practices and
their interaction effects on firm’s performance parameters in each of these three clusters. The
analysis results are shown in Table 3. The regression model considering all 124 cases
(irrespective of their clustering) revealed that the model is statistically significant at α 5 1%,
BIJ with lean (β 5 0.327), TQM (β 5 0.507) and SCM (β 5 0.277) being significant. Also bundled
28,1 practices of Lean 3 TQM (β 5 0.583), Lean 3 SCM (β 5 0.458) and TQM 3 SCM (β 5 0.555)
were also statistically significant. Within the cost leadership cluster, both lean (β 5 0.502) and
TQM variables (β 5 0.588) were significant at α 5 1%. The bundled operational practices
were also statistically significant with Lean 3 TQM, Lean 3 SCM and TQM 3 SCM
reporting a β score of 0.543, 0.541 and 0.650 respectively. However, within the cost leadership
cluster, the firm’s performance is not statistically significant with SCM practices (β 5 0.149).
152 Now, analyzing the cluster for differentiation revealed that the regression model results are
similar to the results obtained from the cost leadership cluster. The regression model for
differentiation cluster is significant for Lean (β 5 0.394, α 5 0.01), TQM (β 5 0.521, α 5 0.01),
Lean 3 TQM (β 5 0.519, α 5 0.01), Lean 3 SCM (β 5 0.319, α 5 0.05) and TQM 3 SCM
(β 5 0.460, α 5 0.01). Here also, for firms pursuing the competitive strategy of differentiation,
their performances are not statistically significant with SCM variable (β 5 0.29), and it is
observed to be a negatively correlated relationship. The negative coefficient for SCM
suggests that SCM implementation is detrimental to the performance of firms following
differentiation strategy. Also bundled practices of Lean 3 TQM (β 5 0.684), Lean 3 SCM
(β 5 0.674) and TQM 3 SCM (β 5 0.633) were also statistically significant at α 5 0.01. Within
all the three clusters, the clusters achieved additional benefits if Lean and TQM, Lean and
SCM and TQM and SCM were implemented concurrently. Based on the analysis results of the
regression model, the results of hypotheses H1–H3 are summarized in Tables 4–6.

5. Discussions and implications


5.1 Discussion on the results of Hypotheses H1a–H1f
In hypotheses H1, the researcher argued that Indian manufacturing firms have a positive
association between operations practices of Lean (H1a), TQM (H1b) and SCM (H1c) on the
firm’s performance. Also, hypotheses were developed to analyze the positive association
between bundled practices of Lean 3 TQM (H1d), Lean 3 SCM (H1e) and TQM 3 SCM (H1f)

Operational Total sample Cost leadership Differentiation Focused


practices (n 5 124) (n 5 30) (n 5 38) (n 5 56)

Lean 0.327* 0.502* 0.394* 0.457*


Table 3. TQM 0.507* 0.588* 0.521* 0.673*
Hierarchical OLS
SCM 0.277* 0.149 0.29 0.532*
regression of
operational practices Lean 3 TQM 0.583* 0.543* 0.519* 0.684*
on business Lean 3 SCM 0.458* 0.541* 0.319** 0.674*
performance TQM 3 SCM 0.555* 0.650* 0.460* 0.633*
(Standardized β) Note(s): * Significant at α 5 0.01, ** Significant at α 5 0.05

Hypothesis Result Observation

H1a Lean → FP Supported β 5 0. 327, p 5 0.00


H1b TQM → FP Supported β 5 0. 507, p 5 0.00
H1c SCM → FP Supported β 5 0. 277, p 5 0.00
Table 4. H1d Lean 3 TQM → FP Supported β 5 0. 583, p 5 0.00
Results of Hypotheses H1e Lean 3 SCM → FP Supported β 5 0. 458, p 5 0.00
H1a–H1f H1f TQM 3 SCM → FP Supported β 5 0. 555, p 5 0.00
and the firm’s performance. The results of regression analysis (Table 4) suggest that there is a Operational
positive relationship between all three operational practices and firm’s performance, thereby practices and
inferring hypotheses H1a, H1b and H1c are supported. Similarly, for the hypothesized
relationship between bundled operational practices and the firm’s performance (Table 4), the
competitive
hypotheses H1d, H1e and H1f are supported. If the research labels the strength of association strategies
for the absolute values of multiple-R, then those pairs having β > 0.50 are regarded as having
a significant relationship, while those pairs having β < 0.50 are regarded as having a weaker
relationship. The results of the analysis show that TQM (β 5 0.507) is having a significant 153
relationship with firm’s performance, whereas LEAN (β 5 0.327) and SCM (β 5 0.277) are
having a weaker relationship. From a management perspective, the focus of manufacturing is
shifted to the principle of TQM to meet customer requirements, so that the manufacturing
firms remain competitive. TQM tools are designed to ensure quality of the company’s
processes and dramatically increase profit. It is now evident from the results of both business
perspective and production perspective studies that TQM is the management philosophy,
whereas lean has been the science of machinery health. TQM is more related to planning and
organizing and lean is more related to technical execution. Quality-focus has endeavored to
reduce defects by establishing a lean production system that focuses on health and condition
of manufacturing equipment and systems. A significant portion of TQM strategy also
focuses on planning a profitable supply chain. In the case of analysis of the impact of bundled
practices on business performance, the Lean 3 TQM (β 5 0.583) and TQM 3 SCM (β 5 0.555)
practices are having a significant relationship with business performance, whereas
Lean 3 SCM (β 5 0.458) is having a weaker relationship. Similarly, in these cases, the
bundled implementation of operational practices associated with TQM practices is found to
be significant holding a stronger relationship with business performance parameters.
Evolution of manufacturing environment oriented towards ISO-standardized quality
management systems helps manufacturing organizations ensure that they meet the needs
of customers and other stakeholders while meeting statutory and regulatory requirements
related to a product or service. Therefore, TQM remains the main driving principle.

Hypothesis Result Observation

H2a: Cost Leadership (Lean > TQM Not TQM: β 5 0.588 > Lean: β 5 0. 502 > SCM:
or SCM) Supported β 5 0.149
H2b: Differentiation (TQM > Lean or Supported TQM: β 5 0.521 > Lean: β 5 0. 394 > SCM:
SCM) β 5 0.29 Table 5.
H2c: Focus (SCM > Lean or TQM) Not TQM: β 5 0.673 > SCM: β 5 0. 532 > Lean: Results of Hypotheses
Supported β 5 0.457 H2a–H2c

Hypothesis Result Observation

H3a: LEAN 3 TQM (Differentiation > Cost Not Focus: β 5 0.684 > Cost Leadership: β 5 0.
Leadership or Focus) Supported 543 > Differentiation: β 5 0.519
H3b: TQM 3 SCM (Cost Supported Cost Leadership: β 5 0.650 >: Focus: β 5 0.
Leadership > Differentiation or Focus) 633 > Differentiation: β 5 0.460 Table 6.
H3c: LEAN 3 SCM (Focus > Cost Leadership Supported Focus: β 5 0.674 > Cost Leadership: β 5 0. Results of Hypotheses
or Focus) 541 > Differentiation: β 5 0.319 H3a–H3c
BIJ 5.2 Discussion on the results of Hypotheses H2a–H2c
28,1 The analysis results for Hypotheses H2a–H2c are summarized in Table 5. Hypothesis H2a
stated that for firms pursuing the competitive strategy of cost leadership, the relative effect of
operational practices on performance should be significant for lean rather than TQM or SCM.
This hypothesis was not supported as TQM (β 5 0.588) reported being the stronger predictor
variable as compared to lean (β 5 0.502) and SCM (β 5 0.149). Within the cost leadership
cluster, TQM (β 5 0.588) and lean (β 5 0.502) have a significant influence on firm’s
154 performance, whereas the least important practice SCM (β 5 0.149) was not statistically
significant. The cost leadership cluster suggests that TQM is the most important trigger of
bringing the cost down for manufacturing firms in India. Also, an interesting pattern of
results, concerning the sample is the minimal influence of SCM on performance of firm
pursing cost leadership strategy. The results of hypothesis H2a have complemented the
findings of research study by Jayaram et al. (2014), while these findings are not in sync with
findings of study by Hallgren and Olhager (2009) and Qi et al. (2011). In hypothesis H2b, the
researcher argued that for firm pursuing the competitive strategy of differentiation, the
relative impact of operational practices on performance will be higher for TQM as opposed to
Lean or SCM. This hypothesis was supported, although the least important practice SCM
(β 5 0.29) was not statistically significant in influencing the firm’s performance for the
differentiation cluster. The results of hypothesis H2b have complemented the finding of
previous studies by Prajogo and Sohal (2006), Prajogo (2007) and Jung et al. (2009), whereas
these results are not in agreement with the finding of Zatzick et al. (2012) and Yunis et al.
(2013). Interestingly, SCM has a negative influence on performance, signifying that it is
detrimental to business performance. As hypothesized, the operational practices to affect
performance in the differentiation cluster was TQM (β 5 0.521), followed by lean (β 5 0.394)
and then SCM (β 5 0.29). This result is indicative of TQM being an order qualifier for
Indian manufacturing firms pursuing differentiation. It appears that lean practices for the
differentiation cluster have elusive performance benefits. There seem to be a catalytic
association with lean and TQM practices. Finally, in hypothesis H2c, the researcher argued
that for Indian manufacturing firms pursuing a focused strategy, the relative impact of
operational practices on performance is higher for SCM as opposed to TQM or lean. This
hypothesis was not supported with the operational practices of SCM. Instead, TQM
(β 5 0.673) has the highest influence on the performance of the firms in the focused strategy
cluster, followed by Lean (β 5 0.532) and SCM (β 5 0.457). The results of hypothesis H2c are
not in sync with the findings of Jayaram et al. (2014). Hence from the results of hypotheses
H3a–H3c, it is clear that the Indian manufacturing firms operating in the competitive clusters
of cost leadership, differentiation and focus appear to be influenced by the operational
practice of TQM. Over the evolution of increased competitiveness in the manufacturing
sector, the emphasis upon quality has increased and is focused on the customer and meeting
the customer’s demand.

5.3 Discussion on the results of Hypotheses H3a–H3c


The analysis results for Hypothesis H3a–H3c are summarized in Table 6. Hypothesis H3a
stated that the interaction of lean and TQM operations practices is more likely to be
associated with the competitive strategy of differentiation rather than cost leadership or
focus. This hypothesis is not supported as the bundled effects of lean and TQM practices are
more with the firms pursuing a competitive strategy of focus (β 5 0.684), followed by cost
leadership (β 5 0.543) and differentiation (β 5 0.519). Hypothesis H3b argued that the
interaction effect of TQM and SCM on a firm’s performance is to have a higher association
with firm pursuing the competitive strategy of cost leadership. The results of analysis
supported researcher’s supposition, which indicates that the TQM and SCM have a relatively
more combinatorial influence on the performance of firms pursuing the competitive strategy Operational
of cost leadership (β 5 0.650), compared to firms pursuing focused (β 5 0.633) and practices and
differentiation (β 5 0.460) strategies. Hence, the hypothesis H3b is supported. TQM
implementation eventually leads to cost leadership strategy, which includes an emphasis on
competitive
supply chains that results in efficient sourcing and delivery, thereby leading to cost- strategies
effectiveness in the supply chain. Finally, for hypothesis H3c, the researcher argued that Lean
and SCM have a conjoint influence on firm’s performance, which is strong for firms pursuing
the competitive strategy of focus, as compared to firms pursuing cost leadership or 155
differentiation. Hypothesis H3c is supported with Lean and SCM programs combine to
increase its joint influence on the performance of firms pursuing focused strategy (β 5 0. 674),
which is higher than firms pursuing cost leadership (β 5 0. 541) or differentiation strategy
(β 5 0.319). The focus of lean thinking has essentially been on the reduction of manufacturing
waste, whereas the focus of SCM is on efficient and streamlined operations. The bundled
implementation of Lean and SCM is not exclusively for those companies who manufacture
products in masses, but by niche-market businesses who want to streamline their processes
by eliminating waste and non-value-added activities. The results of hypotheses H3a–H3c
are not in complete alignment with the findings of Jayaram et al. (2014), who tested these
propositions in the context of Thailand. Analytical test results of hypotheses H3a and H3b
have reported contradictory results. Jayaram et al. (2014) reported a stronger association of
interaction of lean and TQM practices with cost leadership strategy (H3a), while this study
reports lean 3 TQM practices to have a stronger association with differentiation strategy.
Similarly, in the context of hypothesis H3b, Jayaram et al. (2014) reported this proposition is
not supported, whereas the present study supports this proposition. The result of
hypothesis H3c is in line with findings of Jayaram et al. (2014).

5.4 Theoretical implications


The most essential theoretical contribution of this study is the linkage of the Porter’s
theory of competitive strategy with concepts of operational practices. Different strategic
groups emphasize the implementation of different bundles of operational practices and
this affects their firm’s performance. The mixed results found in this study provide further
evidence that established theories that tend to hold true earlier, needs to be modified to be
made applicable for the current competitive market context. The study posits that TQM
practices as a primary enabler of continuous improvement practices in any manufacturing
set up and highlights its potential to revive the competitive image of the company.
However, lean has also evolved as an equally essential manufacturing technique, when the
intentions are to compete not on product aesthetic design, but on low-cost attribute. Also,
to the best of author’s knowledge, it is the first research in the Indian context to empirically
test and build a theoretical model linking competitive strategies to operational practices.
The findings of this study expand the conceptual understanding of the linkages between
competitive strategy and operational practices, and their effects on firm’s performance
parameters. From a theoretical perspective, the study contributes to the manufacturing
strategy and operations management literature that seeks to identify the drivers of high
performance.

5.5 Managerial implications


The findings of the study are grounded in empirical data. Various research propositions
presented using simple formalisms is capable of providing rich practical insights in
aggregate terms. The research framework improves the understanding of the organizational
dynamics of operational strategy formation, it’s linking with competitive institutionalization
of organization processes and other strategic discourses. The study has managerial
BIJ implications for manufacturing firms. Primarily, the study provided empirical insights for
28,1 senior managers of manufacturing firms into how to manage operations with varying
competitive orientation in the context of manufacturing industries. Manufacturers across the
globe can use the results of this study to deploy appropriate operations management
practices to enhance their competitive edge. From the viewpoint of practitioner’s preferred
course of action, senior managers based upon their competitive preferences shall adopt a
vertical integration strategy to configure the endorsed operational strategies, action plans
156 and decision throughout the various levels of the organization. Thereafter for operational
alignment, the firm shall focus upon horizontal integration to strengthen the coordination of
efforts across the organization.

6. Conclusions
Summarizing, the present research explores the proposed research questions in the
introduction section by drawing on the resource-based view of the firm, competitive strategy,
operational practices and contingency theory literature for insights into the constructs and
the relationships among them as stated in the research questions. Addressing the first
research question has provides insights whether operational practices of TQM, lean and SCM
can be considered as a driver of strategic choice, while the second research question has
provided insights about how operational structures and manufacturing practices are adopted
by the firm based upon the competitive strategy being pursued. Hence, based upon RBVF
and contingency theory, this research takes into consideration the operational practices
within the strategic clusters of generic competitive strategies and investigates their
relationship with the firm’s performance. Addressing the second question, the study
examined the relationship between operational practices and firm’s performance within the
conceptual clusters of cost leadership, differentiation and focus. Results of the study support
the researcher’s notion that the pattern of operational practices on performance varies
according to the type of competitive strategy employed. This study also shows that all three
operational practices, i.e. lean, TQM and SCM, are significantly associated with firm’s
performance. TQM has evolved as an approach of success to bring out the quality focus
throughout all phases of an organizational system. Modern TQM programs focus on assuring
that the product design satisfies customer’s primary needs, i.e. it fundamentally focuses on
how well the product or services suits the requirement of the customer. Most manufacturing
firms being a customer-focused organization nowadays lay great emphasis on quality
management system which uses continuous improvement strategy, data and effective
communication to integrate the quality discipline into the culture and activities of the
organization. TQM continues to emerge as a predominant management philosophy among all
competitive strategic clusters of cost leadership, differentiation and focus.
Despite its important contributions, the results of this study must be viewed in the light of
study’s limitation. First, the quantitative data in this study were collected from the senior
management personnel based on their subjective evaluation. More comprehensive objective
indicators should be employed for the proposed research model for future studies. Second, the
anonymity clause requested by respondents and committed by the researcher impedes the
possibility of longitudinal inspection of the study model. Also, our data are cross-sectional,
longitudinal data could be helpful to test the true causality of the proposed research model.
Third, the generalizability of this study may be limited to the manufacturing sector to some
extent by the nature of the sample. Researchers may choose to conduct similar research
considering other sectors and examine the similarities and differences. Also, it would be
interesting to test the analytical framework adopted for this study in different countries. This
specific research study could be extended to further analysis of two different sectors of
manufacturing or between two different countries and with a triangulation methodology,
which enables simultaneous quantitative and qualitative approach toward data collection. It Operational
is also clear that the qualitative assessment should be carried out with case studies to further practices and
generalize the findings of this study.
competitive
strategies
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Corresponding author
Saumyaranjan Sahoo can be contacted at: saumya8989@gmail.com

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