Empirical analysis of enablers and performance outcome of manufacturing flexibility in an emerging economy

Abstract

PurposeThe objective of this paper is to empirically test and verify the enablers of volume flexibility and product-mix flexibility and to assess the influence of these flexibilities on operational performance.Design/methodology/approachA research framework consisting of nine pairs of hypotheses was developed using an extensive literature review. Using a self-administered questionnaire, 391 responses were collected, and these responses were analyzed using descriptive statistics, factor analysis, and structural equation modeling techniques.FindingsThe findings empirically confirm the enablers of volume flexibility and product-mix flexibility. The proposed model explained 59 percent variance in volume flexibility and 63 percent variance in product-mix flexibility. Volume flexibility and product-mix flexibility together explained 38 percent variance in operational performance.Research limitations/implicationsTheoretically, this study advances flexibility literature in two significant ways. First, the study conducts first of its kind quantitative empirical investigation considering upstream, downstream, and internal integration practices as enablers of volume flexibility and product-mix flexibility. Second, this study adds to the flexibility literature by suggesting the positive influence of volume and product-mix flexibility on the operational performance of firms.Originality/valueThe study reinforces the role of enablers in the development of volume and product-mix flexibilities. Thus, the study provides a comprehensive view of flexibility enablers that can be used as a diagnostic tool, which practitioners can use to assess and deploy flexibility.

A hybrid multi-criteria decision-making approach to assess the enablers of manufacturing flexibility under fuzzy environment

“…Building on previous manufacturing flexibility literature (Jain et al , 2013; Mishra, 2020; Nawanir et al , 2020) and analysis of various case studies (Oke, 2005; Mishra, 2018), a conceptual framework for the assessment of manufacturing flexibility was developed (Figure 1). The conceptual framework brings together collective logic of various theoretical and empirical studies done in the area of manufacturing flexibility (Swink et al , 2007; Chang, 2012; Chaudhuri et al , 2018; Sáenz et al , 2018).…”

“…A range of proactive and reactive manufacturing flexibility improvement practices, including sophisticated AMTs, suppliers, workforce, technology, best practices, customers’ and suppliers’ relationship are identified in the literature, (Upton, 1995; Vokurka and O'Leary-Kelly, 2000; Jack and Raturi, 2002; Salvador et al , 2007; Boyle, 2006; Zhang et al , 2006; Hallgren and Olhager, 2009; Boyle and Scherrer-Rathje, 2009; Rogers et al , 2011; Sáenz et al , 2018; Mishra, 2020b). Therefore, it can be said that unlike the conventional belief, the development of manufacturing flexibility demands more than just the availability of essential infrastructure (Chaudhuri et al , 2018).…”

“…In this study, as suggested by Mishra (2020), manufacturing flexibility enablers are grouped into eight factors, namely operational improvement practices, advanced manufacturing technology, advanced human resource practices, supplier integration, customer integration, product-process technology integration, marketing and manufacturing integration and supplier flexibility. Operational improvement practices refer to a set of practices that lead to continuous improvement in manufacturing (Zhang et al , 2006; Hallgren and Olhager, 2009).…”

“…Enablers of the manufacturing flexibility were derived from existing literature (Mishra, 2020). These include eight different enablers, namely operational improvement practices, advanced manufacturing technology, advanced human resource practices, supplier integration, customer integration, product process technology integration, marketing and manufacturing integration and supplier flexibility.…”

IT Usage and Innovation Performance of SMEs in China: A New Perspective

“…But views on the specific dimensions of manufacturing flexibility are different from one another [26]. Despite this, scholars generally agree that manufacturing flexibility is essentially the ability of a firm to adapt to environmental uncertainty [27].…”