Performance landscape modeling in digital manufacturing firm

Purpose The purpose of this paper is to update existing Kauffmann’s NK model to evaluate the manufacturing fitness of strategic business capabilities. The updated model is tested in a digital manufacturing (DM) setting to investigate the sequence for developing cumulative capabilities that can yield the maximum payoff. Design/methodology/approach The authors develop a grey–DEMATEL–NK fitness model and show its application, through a case study, to a DM firm in India. Findings The grey–DEMATEL–NK model helps evaluate multiple manufacturing capabilities and indicates that quality–flexibility–cost–delivery is the sequence that yields the maximum manufacturing fitness (competitive payoff) for a DM firm. This sequence helps the firm reorganise its internal business processes and is different from that used to develop cumulative capabilities in a traditional manufacturing setting (quality–delivery–flexibility–cost). Originality/value This study presents a pilot model for computing the cumulative capabilities payoff and prescribes a sequence for developing cumulative capabilities within a DM context.