The effect of strategic flexibility configurations on product innovation

Aydin Beraha,Dursun Bingol,Nina Szczygiel,Ela Ozkan-Canbolat

doi:10.1108/ejmbe-02-2018-0028

Abstract

Purpose The purpose of this paper is to determine the contribution of company functional areas – production, marketing, and human resources – to strategic flexibility configurations. It also seeks to explore the comparative contributions of functional areas to product innovation. Design/methodology/approach The study uses the fuzzy-set qualitative comparative analysis to develop a better understanding of departmental contributions to strategic flexibility configuration and the effect of strategic flexibility on product innovation by functional areas. Findings The findings of this study indicate that marketing flexibility has a key role in product innovation. Research limitations/implications A limited number of cases may be one of the possible reasons for no proven contribution of HR flexibility to product innovation, and may affect results due to poor representation. Practical implications The required flexibility level is at least the one maintaining the company’s status and certifying competitive advantage. Social implications A pressure for flexibility leads companies to modify their organizational structure, processes, and resources. Originality/value The environmental change and uncertainty provide dynamic challenges that increase the need of company flexible reactions

Highlights

With the advancement of information technologies, company strategy focuses nowadays on sustainable competitive advantage, and gives importance to short-term advantages of flexibility and fast response
The findings reveal that the strategic flexibility configurations have a significant role in product innovation, as referred to in the first proposition
The results indicate that strategic flexibility configurations related to production and marketing flexibility have a significant role in product innovation

Summary

Introduction

With the advancement of information technologies, company strategy focuses nowadays on sustainable competitive advantage, and gives importance to short-term advantages of flexibility and fast response. Flexibility is accompanied by reorganization of resources and skills, strategic cooperation, and centrifugal hierarchical structure (Grant and Jordan, 2012). A company aims to absorb or exploit uncertainty through flexibility © Aydin Beraha, Dursun Bingol, Ela Ozkan-Canbolat and Nina Szczygiel. Published in the European Journal of Management and Business Economics. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

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