The relationship between internal integration and manufacturing flexibility in the Egyptian industry

Abstract

Purpose This paper aims to empirically investigate the triadic relationship between internal integration, internal flexibility and external flexibility. Design/methodology/approach This research hypothesized the mediation effect of internal flexibility on the relationship between internal integration and external flexibility. Survey data were collected and analyzed using simple and mediation regression analysis to test the study hypotheses. Findings The research finding reveals that machine, labor and material handling flexibilities; being as internal flexibility dimensions mediate the relationship between internal integration and volume and mix flexibilities; being as external flexibility dimensions. The results provided insufficient evidence on the mediating effect of routing flexibility on the relationship between internal integration and both volume and mix flexibilities. Research limitations/implications This research presents a new perspective for research studies to understand the factors that affect manufacturing flexibility. However, the nature of the surveyed sample and using of a single informant might limit the generalizability of the research findings. Practical implications This study provides useful insights for firms wishing to enhance their competitiveness through improving their flexibility. The companies should be aware of the importance of developing a suitable platform for coordinating inter-departmental activities to enhance its internal competencies, which, in turn, improve its customer-facing capabilities and boosts its competitiveness. Originality/value This paper contributes to knowledge by proposing and empirically testing the mediating effect of internal flexibility on the relationship between internal integration and external flexibility.

Supply Chain Integration Enables Resilience, Flexibility, and Innovation to Improve Business Performance in COVID-19 Era

“…SCM integration consists of sharing information, joint decision-making, and collaborating with partners [17]. Internal integration consists of three dimensions: communication, relationship, and coordination [22]. Measurement items for internal integration and external integration as supply chain integration used by the International Manufacturing Strategy Survey (IMSS) are share inventory level, share production planning, collaborative forecast, Just-in-time replenishment, and consignment stock [5,19].…”

“…The flexibility established by the manufacturing company depends on and relates to vendors' flexibility in complying with the delivery time, order size, and volume flexibility [17]. Manufacturing flexibility is a company's ability to make changes related to production levels, create new products frequently, to enhance company competitiveness [22,42]. The company flexibility also refers to coping with customer needs quickly and effectively and communicating well to suppliers to deliver the raw materials requirement [19].…”

“…Manufacturing flexibility is related to customizing products, volume flexibility, mix flexibility, delivery speed, and delivery reliability [19]. Manufacturing flexibility is measured with item machine flexibility, labor flexibility, material handling flexibility, and routing flexibility [22]. Business flexibility in the supply chain strategy includes flexible suppliers, flexible supply contracts, flexible manufacturing processes, flexible products, and flexible pricing [40].…”

“…Supplier integration is part of supply chain integration that improves manufacturing flexibility in providing materials to meet company needs [19,20]. Supply chain flexibility can provide customer satisfaction because it can provide product quality and product variance as needed [21,22]. The company's ability to manage flexibility properly will improve company performance [22].…”

“…Supply chain flexibility can provide customer satisfaction because it can provide product quality and product variance as needed [21,22]. The company's ability to manage flexibility properly will improve company performance [22]. Supply chain integration, which consists of supplier integration and internal integration, does not directly impact supply chain agility, but in contrast to customer integration, it has a direct impact on supply chain agility from the Malaysian industry [23].…”