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This paper presents taxonomy of operations priorities using data collected from 175 companies in China. The taxonomy of operations priorities in China are found to be quite different from what was observed in previous studies (Miller and Roth 1994; Kathuria 2000; Frohlich and Dixon 2001). The result of this study supports the view that the types of the operations strategies used by companies are different in different parts of the world and are influenced by the competitive environment (Frohlin and Dixon 2001).

This paper also compares the use of the competitive strength and importance rating of the operation priorities to develop the taxonomy and found that competitive strength measures are more reliable and can better explain company's performance and their emphases on management programs. The paper advocates the use of competitive strength rather than importance in future research on operations strategy.

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