Production competence models have been proposed and empirically tested by many academics. CSA (Cleveland, Schroeder and Anderson) model was the first production competence measurement model which directly addressed how to evaluate the firm's competiti...
Production competence models have been proposed and empirically tested by many academics. CSA (Cleveland, Schroeder and Anderson) model was the first production competence measurement model which directly addressed how to evaluate the firm's competitiveness based on production system characteristics. But its applicability appeared to be very limited by the use of less appropriate competence measures as well as the very small sample-based empirical test. This CSA model was further revised by Vickery but still remained incomplete in spite of some improvement in competence measuring method. Later, Vickery and his associates proposed a more comprehensive production competence model based on various manufacturing strategies and practices as well as other functional characteristics such as marketing mix elements and strategic choice attributes. But this model was also criticised because it employed too many complicated non=manufacturing characteristic in determining production competence. Kim and Arnold have also proposed and tested two production competence models, model-1 and model-2, based on strategic orientations and relative performances of manufacturing system. Model-2 focused on strategically important manufacturing orientation proved to be more applicable to forecast business performance. However, limitations of these competence models such as use of invalid measures or lack of applying rigorous validation process make them show only limited relationship with overall business performance measures. Thus, this study aims to propose a new production competence model (GAP model) based on the notion that both over or under allocated resources to strategically important competitive priorities (that is allocation gap)will surely weaken production competence of a firm. Competence measures of manufacturing practice and strategic orientation were surveyed through the review of theoretical and empirical studies and refined to be sues in the proposed model. Comparing with VDM model (proposed by Vickery, Droge and Markland) and KA (Kim and Arnold) model, this model showed more suitable for discriminating leading business performance companies from lagging ones by empirical testing.