Handbook of Management Scales/Processes and equipment development

Processes and equipment development (composite reliability = 0.68)

Description

The authors identify improvement and innovation as two critical plant level capabilities. These capabilities are each conceptualized as a second-order factor and measured through a distinct bundle of routines. The following routines underlying improvement capabilities are identified: continuous improvement, process management, and leadership involvement in quality. The routines closely related to improvement capability are: search for new technologies, cross-functional product design, and processes and equipment development. The items to measure each routine were selected based on a review of the relevant literature. Items were included that have been used in prior studies. A panel of five academic researchers and managers with expertise in manufacturing operations reviewed each of the items.

Definition

Processes and equipment development is an important innovation activity that creates manufacturing-based advantage through internal development of technology.

Items

• We actively develop proprietary equipment.
• We have equipment that is protected by our firm’s patents.
• We rely on vendors for most of our manufacturing equipment. (reverse-coded)

Source

• Peng et al. (2008): Linking routines to operations capabilities: A new perspective. Journal of Operations Management, Vol. 26, No. 6, pp. 730-748.

Comments

Composite reliability is too low.