Manufacturing capabilities reconfiguration in manufacturing strategy for sustainable competitive advantage

This paper focuses on reconfiguring manufacturing capabilities by aligning know‐how and customer focus capabilities in finding manufacturing capabilities mechanism. The methodology applies Newsboy problem to capability transformation and game theory to capture bigger market share. Further, response analysis finds reconfiguration response pattern. The results show that a firm manufacturing strategy should consider know‐how and customer focus on their manufacturing capability transformation to get information related to product life cycle and costs of technology and opportunity lost. The proposed approach shows that combination among Newsboy vendor problem, game theory and system dynamic models is suitable to be applied in maintaining the firm competitiveness. An innovated model of 'Newsboy vendor‐game theory‐system dynamic' shows the novelty of this proposed methodology.