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This paper aims to analyze manufacturing strategy process (MSP) from a knowledge‐based view (KBV) of the firm. MSP considers the ways that manufacturing organizes its resources in order to create/strengthen manufacturing‐related capabilities. In this context, managers often are under pressure to find quick answers in highly complex environments. By viewing MSP as a knowledge creation process, managers may choose a company's objectives based upon previous experiences and knowledge. MSP addresses the level of planning and decision making related to building competitive operations capabilities over the long term.

A survey research was used to make cross‐country comparison. The constructs were empirically confirmed in both country samples, attesting to measurement invariance. The proposed model was tested in both samples and analyzed the differences between them.

The results suggest that knowledge is a key resource in MSP in both samples. Resource‐based orientation presents higher levels of influence over MSP in Brazil. In the Spanish sample the influence of external knowledge in MSP and market performance is more relevant.

One limitation of this study is that the Brazilian sample is located in a specific region and therefore some regional characteristics may be present. Another limitation was the use of a questionnaire in two different countries that was originally developed in a non‐native language.

As a practical implication, manufacturing should seek to integrate the strategic process in order to be more responsive in dynamic environments.

The paper uses a cross‐country sample for scale validation, which is rare in management research. Manufacturing strategy process was analyzed from a knowledge‐based view, bringing new possibilities for academic studies. For managers, the paper highlights the importance of manufacturing developing a proactive role through knowledge integration in cross‐functional activities during the strategic process.

Supply chain managers (SC managers) may make less than optimal decisions for the firm when facing compensation and employment risks. The purpose of this paper is to study two relevant factors (target setting and strategic importance of the supply chain function) that may drive SC managers to perceive more or less risk to their welfare.

The study combines survey data from 133 firms with secondary data in order to reduce source bias and enhance the validity of results. The authors also conducted interviews with supply chain and human resources managers.

The results show that top managers can alter SC managers’ perceived risks. Ambitious targets drive compensation risk but not employment risk. The supply chain function’s strategic importance, on the other hand, decreases employment risk but increases compensation risk.

The authors emphasize two ways that the top management team (TMT) influences SC managers’ perceived personal welfare but acknowledge that there may be others factors. Due to the topic sensitivity, the authors could not collect data on all variables (e.g. individual characteristics) that may affect risk perception. The findings are based on Spanish firms and may not be generalized to other contexts.

This research proposes three suggestions. First, compensation and employment risks should be considered separately when designing compensation and evaluation systems. Second, appropriate performance targets may put compensation risk in a reasonable range that is neither too high to prevent risky-yet-beneficial decisions nor too low to allow nonfeasance. Third, escalating the supply chain’s strategic importance effectively offsets employment risk.

Scholars have repeatedly shown the negative outcomes of SC managers’ perceived compensation and employment risks. Yet, little attention has been given to their antecedents. The study explores two relevant antecedents and provides integrative empirical evidence regarding actions top leaders can take to manage SC managers’ perceived risk and subsequently enhance firm performance.