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They suggested that there should be a link between product plans and process choice that supports the overall business strategy (Hayes and Wheelwright, 1979). Furthermore, they contended that firms operating on or close to the diagonal of the product-process matrix will outperform those that hold significantly off-diagonal positions (see Figure 1). Much of the operations strategy literature since then has supported their assertions, and many operations management texts use the model to describe process choice in manufacturing.
More recently, research has been conducted to validate empirically whether firms actually link their process choice to product volume and customization and whether those decisions result in better performance...
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