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The purpose of this paper is to investigate systematically the topic of operations capabilities within the operations strategy area. The output is a framework that will benefit researchers and firms to gain a more complete understanding of critical operations capabilities.

The research methodology is a systematic literature review. The aim of this study is to provide a snapshot of the diversity of studies being conducted in the field of operations capabilities, within the operations strategy area. In total, 157 papers were taken into consideration. Various operations capabilities were identified and synthesized in a conceptual framework.

The output of this paper is a conceptual framework of critical operations capabilities. Different operations capabilities and dimensions were identified in the literature. In total, seven dimensions were identified and included in the framework: cost, quality, delivery, flexibility, service, innovation, and environment.

This research was conducted through a systematic literature review. The framework presented in this paper provides a summary of critical operations capabilities, and in addition theoretical support for managers and firms wishing to formulate an operations strategy.

In general, this research sets the basis for managers and practitioners concerning the formulation of successful operations strategies. In the long term, a deeper understanding and shared knowledge about competitive priorities and operations capabilities can positively influence the success of firms.

This paper extends the theory by providing researchers and managers with updated knowledge on operations capabilities.

To survive in a competitive landscape, companies are required to identify, develop and continuously improve upon the operations capabilities that have the greatest impact on the overall competitiveness. This paper aims to evaluate critical operations capabilities for competitive manufacturing in a high-cost environment.

Critical operations capabilities for competitive manufacturing were extracted in a literature review and then evaluated from the perspective of a high-cost environment in a focus group study. The focus group included a quantitative (questionnaire) and qualitative (discussion) evaluation of the extracted critical operations capabilities.

The empirical findings revealed that all the capabilities identified in the literature review are considered critical in a high-cost environment, albeit with varying emphasis. Companies located in a high-cost environment tend to emphasize a broad set of capabilities related to quality, cost, time, flexibility and innovation rather than only cost-related capabilities.

The research is based on a focus group that was limited to 14 representatives from five Swedish manufacturing companies. This can reveal some limitations with regard to the generalizability of the conclusions drawn. Hence, this research should be considered as an initial step in gaining a more in-depth and complete understanding of the research topic under investigation.

The research outcome enables managers to design their operations strategy more systematically and effectively, to be consistent with their targeted capabilities. The operations capabilities are important for both the company’s competitiveness and its future direction.

The paper presents an updated understanding of how companies achieved a competitive advantage in a specific manufacturing environment such as a high-cost context. It additionally provides an overview of what capabilities are developed for implementing successful operations strategies.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Manufacturing organizations looking to operate in high-cost environments (reshoring) must look to operational capabilities to gain competitive advantage.

The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.