Revisiting the theory of production competence: Extensions and cross-validations

This paper examines a widely cited work in operations management, the theory of production competence, advanced initially by Cleveland, Schroeder, and Anderson (CSA). This intuitively appealing proposition asserts that production competence leads to improved business performance. However, CSA's empirical work has been criticized by Vickery and her collaborators and by Safizadeh, Ritzman, and Mallick (SRM). Moreover, SRM's own empirical work suggested that the CSA proposition only holds for batch processes. Using data from two large studies, we avoid the problems that plagued CSA's analysis, improve on their result, and call into question the SRM finding that restricts that result to batch operations.