Towards the Integration of the Production Function in Strategic Management of Industrial Organizations to Avoid the Efficiency Trap

Abstract

Excessive focus on operational efficiency and devaluation of the strategy can compromise the sustainability of industrial organizations. However, these two perspectives are not antagonistic, on the contrary, they should complement and enhance each other. This article analyses the role of the production function in strategic management of an industrial organization based on Hayes and Wheel-wright’s four-stage model. The study has a qualitative nature. The data collection occurred through semi-structured interviews and non-participant observations in a small manufacturing company that is already starting the most advanced stage of integration of the production function within the company’s strategy. Data analysis occurred through content analysis using Atlas.ti 5.0 software. This study allows us to understand how the production function can and should be a strong source of competitive advantage and assist in organizational growth in industrial companies. The results indicate the existence of organizational peculiarities of the production function throughout the various stages of the strategic process namely, in terms of aspects related to the competitiveness and sustainability of the organization and with the characteristics of the business strategy itself. In addition to these results it was possible to identify that the modification of a position in the evolutionary stages of the model does not occur linearly, as it can also maintain characteristics of other stages.