The theory of performance frontiers

This paper seeks to illustrate how the basic theory of performance frontiers proposed by Schmenner and Swink wSchmenner, R.L., and Swink, M.L., 1998. On theory in operations management. Journal of Operations Management, 17, x 97–113 can be extended to apply to a broader range of operations management issues. It extends the scope of the proposed theory to include a ‘‘between-firm’’ level analysis which can be useful in assessing a firm’s competitive position and for strategic decision making. In addition, this paper provides a link between the resource-based view of organizations that has gained some prominence in the strategy literature and the proposed theory of performance frontiers. This paper argues that the operating frontiers of organizations represent unique resources and they are more important than the asset frontiers in achieving a competitive advantage because these unique resources are valuable, rare and specific to a given firm, and they are difficult to replicate. Future research directions and research methods focusing on the internal resources of competitive advantage are also discussed. q 2000 Elsevier Science B.V. All rights reserved.