A Theory of Production Competence*

Production competence is an enigmatic functional phenomenon. What is it? Can it be measured? Does it affect business performance? The literature barely touches on these issues. If competence is defined as a variable rather than a fixed attribute, it can be measured by how well manufacturing's strengths and weaknesses complement the priorities of the business strategy. Since performance is a measure of how well that strategy works, there should be a definable relationship between competence and performance. This study proposes just such a relationship and promotes production competence as the theoretical link between production process and business strategy.