The manufacturing adaptive capabilities of firms: the role of technology, market and management systems-related adaptive capabilities

Abstract

PurposeThis study investigates the roles of market, technology, and management system-related adaptive capability variables on a firm’s manufacturing adaptive capability. In addition, the study examines the effects of a firm’s manufacturing adaptive capability on its effectiveness. Further, this study tests the moderating role of organizational redundancy on the relationship between the market, technology, and management system-related adaptive capabilities and the overall manufacturing adaptive capability of a firm.Design/methodology/approachThis study utilizes questionnaire-based research to test the suggested hypotheses by gathering related data from 59 manufacturing firms.FindingsThis study determined that a firm’s technology and management system-related adaptive capability positively relates to firm's manufacturing adaptive capability. Further, market adaptive capability influences manufacturing adaptive capability via the levels of technology and management system-related adaptive capabilities. Manufacturing adaptive capability is also found to be positively associated with organizational effectiveness, and resource redundancy positively moderates the relationship between management systems adaptive capability and manufacturing adaptive capability. Conversely, resource redundancy negatively moderates the relationship between technology adaptive capability and manufacturing adaptive capability. Finally, this study demonstrates that information redundancy does not moderate the desired relationship between all the adaptive capability-related variables for firms.Research limitations/implicationsThis study has some limitations inherent in survey design, mainly for both convenient sampling and country context.Practical implicationsThis study suggests that management should improve firm’s manufacturing adaptive capability to enhance firm's overall effectiveness. For that purpose, managers should consider the interrelationships between the market and a firm’s technology, management system, and manufacturing-related adaptive capabilities. Management should also consider the importance of using resource-related redundancy to leverage the relationship between a firm’s management adaptive capability and manufacturing adaptive capability. At the same time, management should be aware of certain reverse effects of resource redundancy on both technology adaptive capability and the manufacturing adaptive capability linkage of a firm.Originality/valueThis study expands the understanding of the adaptive capability of firms by examining how manufacturing adaptive capability can be further enhanced. The study also offers a model for the potential relationships that develop between different aspects of organizational adaptive capability by applying the contingency role of organizational redundancy variables.

Exploring challenges in dimensioning safety buffers: an empirical study

“…(2020) have further argued that future methods for dimensioning safety buffers should better account for input data, because the output from a method is only as good as its input. Keskin et al. (2022) have additionally highlighted the importance of not only the quality but also the quantity of input data for improvements, especially in shifting conditions.…”

“…Most of the challenges, including those in decision management and responsibilities, were of an organisational, qualitative character, thereby implying a need to underscore concern for and interest in dimensioning safety buffers at higher organisational levels. According to Keskin et al. (2022), safety buffers are of strategic importance and should receive attention from top management, for they permit an organisation to accommodate changes and leverage delivery capability.…”

“…, 2022). The companies all expressed interest in such adaptive dimensioning of safety buffers, thereby potentially signalling another challenge—namely, outdated practices and behaviours—as also identified by Keskin et al. (2022).…”

“…Such enhancements can be based on adaptive control, in which a company's adaptability indicates its ability to react to changing conditions (Keskin et al, 2022). The companies all expressed interest in such adaptive dimensioning of safety buffers, thereby potentially signalling another challenge-namely, outdated practices and behaviours-as also identified by Keskin et al (2022). Fifth, the identified challenges need to be considered in developing a standardised routine for adaptive dimensioning of safety buffers, preferably with guidelines to facilitate employees' commitment and top management's support, as advised by Abu et al (2022) in response to cultural challenges.…”

“…, 2022) without compromising their delivery capability. However, as the capability to handle stochastic variations in supply and demand becomes increasingly critical in today's volatile business environment (Howells, 2020; Keskin et al. , 2022), equally critical is having added resources in the shape of safety buffers (Boulaksil, 2016; Hopp and Spearman, 2021; Wang et al.…”