International Journal of Production Research Vol. 48, No. 20, 15 October 2010, 5943–5961

The impact of market focus on operations practices
Tritos Laosirihongthonga, Keah Choon Tanb* and Vijay R. Kannanc
Department of Industrial Engineering, Thammasat University, Klong Luang, Pathumtanee 12121, Thailand; bDepartment of Management, University of Nevada, Las Vegas, Las Vegas, NV 89154-6009, USA; cJon M. Huntsman School of Business, Utah State University, Logan, UT 84322-3555, USA (Received 17 December 2008; final version received 3 August 2009) A key element of successful organisations is the alignment of their strategy and tactics. This study explores the relationship between a firm’s competitive strategy and its operations practices in the context of a developing economy. Two competitive strategies are examined; a niche market strategy characterised by targeting specific market segments, and a broad market strategy characterised by serving a wide range of market segments. Three sets of operations practices consistent with the adoption of lean manufacturing, Total Quality Management, and relationship development in a supply chain context, are explored. Using survey data from senior managers in Thailand, results show that for firms adopting a niche market focus, competitive strategy directly influences process management and relationship development, which in turn affect workforce commitment. Only workforce commitment has a direct effect on operational performance. In contrast, for firms adopting a broad market focus, competitive strategy directly influences workforce commitment, which in turn affects process management and relationship development practices. It is the latter practices that directly influence operational performance. Keywords: competitive strategy; market focus; process management; workforce commitment; relationship building; operational