Reconciling the resource‐based and competitive positioning perspectives on manufacturing flexibility

Abstract

PurposeThe purpose of this paper is to reconcile two different perspectives on manufacturing flexibility found in the operations management literature.Design/methodology/approachConceptual in nature, the paper examines manufacturing flexibility from the perspective of the resource‐based view of the firm as a complement to the competitive positioning view of strategic management. It draws upon both these views to better understand the role of manufacturing flexibility in firms.FindingsThe paper emphasizes the proactive use of manufacturing flexibility, as a means to create opportunities, in addition to its reactive use in response to environmental uncertainties. The integration of the resource‐based and competitive positioning views has implications for researchers in explaining inter‐firm performance differences and for practitioners in incorporating the role of manufacturing flexibility in their strategic thinking.Research limitations/implicationsThe integration of these two theories should be empirically tested to provide a better understanding of the conditions under which alternative use is more critical in explaining a firm's success.Practical implicationsManufacturing has been traditionally viewed as a reactive tool to adjust to environmental uncertainties. The paper argues that this approach is too narrow and emphasizes the proactive role of manufacturing flexibility as a competitive weapon in strategy formulation.Originality/valueThe paper suggests that the integration of the resource‐based and competitive positioning allows for a more complete picture of the role of manufacturing flexibility in creating a competitive advantage.