The 'Sandcone' Cumulative Capabilities Model: Testing Its Application in Some Asia-Pacific Countries

A carefully crafted manufacturing strategy that enables a company to develop its key competitive capabilities - quality, delivery, flexibility and cost efficiency - can strongly influence its ability to compete effectively. To date, a number of models have been proposed that provide guidance on how companies should treat these capabilities. Our study focuses on the cumulative 'sandcone' model proposed by Ferdows and De Meyer [1]. This model not only suggests that firms can compete on all four capabilities simultaneously, but also defines how this can be done (a plant should start with quality, followed by delivery, then flexibility and lastly cost efficiency). This model has been widely cited; however its validation has been inadequate. We tested this model with data from 218 manufacturing firms in five Asia Pacific regional countries (Hong Kong, Singapore, Taiwan, Korea and Australia). We found evidence in support of it, although this support was not emphatic. Results suggested that firms develop capabilities in quality, then simultaneously develop capabilities in delivery, flexibility and cost efficiency. The higher level capabilities are indirectly related to each other.