Purpose 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. Design/methodology/approach 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. Findings 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. Research limitations/implications 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. Practical implications 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. Originality/value This paper extends the theory by providing researchers and managers with updated knowledge on operations capabilities.

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Purpose 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. Design/methodology/approach 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. Findings 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. Research limitations/implications 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. Practical implications 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. Originality/value 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.

There is increased interest in relocation to and from highcost environments, but there remains a lack of knowledge with regard to operations capabilities in this specific context. The purpose of this study is thus to investigate critical operations capabilities in a high-cost environment. The research process is based on the investigation of an existing framework of operations capabilities through a multiple case study including five Swedish manufacturing companies. The findings reveal that all the dimensions and capabilities included in the framework were considered critical, and additional operations capabilities could be identified: service quality, supplier dependability, supplier flexibility, supply chain innovation, supply chain sustainability. The investigation underlines the dynamic nature of operations capabilities, which need to be updated constantly according to the environment in which they are developed. This study contributes on a practical level to managers by creating an overview of operations capabilities in a high-cost environment. Through the investigation of critical operations capabilities, it is possible for managers to find new areas of competitiveness, as well as to understand their current areas of excellence. The study makes several contributions, such as the identification of operations capabilities, their investigation and validation in a specific environment.

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