The Impact of Manufacturing Cumulative Capabilities on Organizational Performance An Applied Study in Manufacturing Companies at Abdullah II Ibn Al-Hussein Industrial City

“Mohammad Khair" Saleem Abu Zaid

Abstract


The purpose of this research paper was to examine the 'cumulative capabilities' theory in King Abdullah II Industrial City. Furthermore, this research empirically investigated the influence of manufacturing cumulative capabilities on organizational performance. Data were collected through self–administrated questionnaires that were distributed among manufacturing companies. A total of (114) questionnaires were valid for analysis. The 'Structural Equation Model' was used to analyze the collected data. A number of significant findings were outlined in this research as follows:
• Results from the path analysis supported the 'cumulative capabilities' theory represented in the effect between the capabilities of quality, cost, delivery, and flexibility. However, this suggested that the 'tradeoffs' theory between the capabilities was not found.
• There was an indirect effect between quality and flexibility through delivery.
The study results showed an impact of cumulative capabilities on organizational performance. Specifically, the path analysis results revealed that the impact of delivery on flexibility differ between high and low performance organizations in favor of high-performance companies.

Keywords


Manufacturing Capabilities, Cumulative Capabilities Model, Trade Off Model, Organizational Performance.

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