The moderating effect of manufacturing capability on the relationship between strategic situation cognition and manufacturing strategy

The paper presents an analysis of manufacturing strategic model from the market - capability synergy perspective. By building on recent works on strategic rationality and manufacturing strategy, the paper proposes that a firm´s cognition of both the market environment it operated in, and the capabilities it posses, are two key factors affecting how the firm formulate its manufacturing strategic decision. Using empirical data from International Manufacturing Strategy Survey, an explorative study is conducted to confirm that, manufacturing strategic decision is moderated by the two key factors jointly and individually.