Zero-sum and frontier trade-offs: an investigation on compromises and compatibilities amongst manufacturing capabilities

This paper examines well-accepted methodologies and rationales used to assert the presence/absence of trade-offs and compatibilities between manufacturing capabilities, and comparisons are made with respect to more recent theoretical developments. By means of a detailed analysis of a representative framework, important limitations and inconsistencies are identified. The proposal for the existence of zero-sum and frontier trade-offs intends to resolve some of those issues. Generally speaking, zero-sum trade-offs are identified by a statistically significant and negative correlation. On the other hand, frontier trade-offs are predicted to be observed after some level of compatibility between different capabilities is achieved. This means that, apart from widely-used probabilistic methodologies such as linear regression/correlation analysis, subsequent deterministic approaches and rationales need to be applied in order to acknowledge the potential existence of frontier trade-offs. These and other implications are discussed in light of previous studies, and suggestions for future research are offered.