ABSTRACT
This chapter focuses on the role of operations managers who define the process capabilities that critically impact a firm's competitive advantage. The chapter is devoted to developing a deep understanding of the research and managerial implications that lead to the successful innovation of process capabilities. It explores how advance in science and technology are pursued to innovate process capabilities in two contexts. The chapter considers a firm that relies solely on its internal knowledge resources. It considers a firm that relies on both internal and external knowledge resources. The chapter suggests opportunities for future research. It focuses on how advances in science and technology drive new process, as opposed to product, capabilities. The chapter establishes that a firm's process capabilities play a critical role in the successful creation of new products, services, and business models, and the improvement of those that already exist.
