THE ROLE OF OPERATIONS STRATEGY IN BUILDING SUSTAINABLE COMPETITIVE ADVANTAGE: A SYSTEMATIC LITERATURE REVIEW

Abstract

Background: Increasingly dynamic business competition compels firms to seek sources of competitive advantage that are difficult for rivals to imitate and can be sustained over the long term. The operations function is critical to this effort, although its strategic role is often underappreciated.

Aims: This study synthesizes the literature on the role of operations strategy in building sustainable competitive advantage and develops an integrated conceptual framework linking operational resources and capabilities to long-term competitive outcomes.

Research Method: A systematic literature review guided by the PRISMA 2020 statement was conducted. Scopus, Web of Science, ScienceDirect, and Google Scholar were searched using combinations of the terms “operations strategy,” “competitive advantage,” and “sustainable competitive advantage.” Eligible studies were analyzed thematically through the lenses of the Resource-Based View and Dynamic Capabilities Theory.

Results and Conclusion: Operations strategy acts as a bridging mechanism between a firm’s internal resources and capabilities and sustainable competitive advantage through five principal pathways: lean and agile practices, total quality management, the integration of sustainability into operational decisions, digital transformation and Industry 4.0, and alignment with the local institutional context. Operations-based advantage is more difficult to imitate when it arises from valuable, rare, inimitable, and non-substitutable resources supported by dynamic capabilities that enable continuous adaptation.

Contribution: The study offers an integrated conceptual framework for academics and practitioners designing operations strategies for long-term competitive advantage and identifies future research priorities, particularly for small and medium-sized enterprises in developing countries.