An increased awareness on competitive priorities and capabilities has been seen among firms. The main focus of this research are the operations capabilities which are connected to the competitive priorities in a company. The purpose of this research is to investigate critical operations priorities and capabilities with the following two research questions:

RQ1: Which critical operations priorities can be identified in the literature?

RQ2: Which critical operations capabilities can be identified in the literature?

The competitive priorities represent the company's future emphasis on the manufacturing, indicate the strategic position that is desired in the marketplace and support the corporate strategy. Operations capabilities can be defined as company-specific sets of skills, processes and routines which are developed within the operations strategy management. By conducting a systematic literature review seven priorities and 17 capabilities were identified in total.  The developed taxonomy will help companies identify and develop their company-specific operations priorities and capabilities. It can also be used as a framework for other researchers within this area.