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.