Testing an integrated model of operations capabilities: An empirical study of Australian airlines

Abstract

Purpose – The purpose of this paper is to test the integrated model of operations strategy as proposed by Schmenner and Swink to explain whether firms trade‐off or accumulate capabilities, taking into account their positions relative to their asset and operating frontiers. Design/methodology/approach – The four major airlines based in Australia were studied. The paper is based on longitudinal data obtained from secondary sources. The four operations capabilities cost, quality, delivery and flexibility, and asset and operating frontiers, were all measured with proxy variables. Findings – The study provides some support for the integrated model. Firms do appear to trade‐off capabilities when..