Abstract
This study aims at investigating the influence of tactical flexibilities (mix flexibility, volume flexibility, and modification flexibility) on the competitive advantage of a firm. To address this objective, a cross-sectional survey employing a questionnaire method of data collection is adopted. The study targets operations managers, plant managers, and quality managers in Jordanian Manufacturing Companies listed in Amman Stock Exchange Market. A total of 153 usable responses are received representing a response rate of 69.5%. For the purpose of data analysis, the research utilizes multivariate data analysis using exploratory and confirmatory factor analysis. The results of structural equation modeling analysis indicate significant impact of tactical flexibilities on competitive advantage. The study includes managerial implications for managers and proposes several directions for future research such as examining the role of tactical flexibilities in planning the corporate and functional strategies of a firm.
Highlights
IntroductionIn today’s uncertain business environment characterized by rapid changes, advanced technology systems, complexity of customers’ requirements, new forms of strategic alliance, customized products, increasing levels of product variety, appearance of new trends toward quality issues (e.g. six sigma approach) and extension of the globalization phenomenon across and outside borders; flexibility is emerging as a competitive priority required to respond effectively to changing circumstances resulting from internal and external environments
In today’s uncertain business environment characterized by rapid changes, advanced technology systems, complexity of customers’ requirements, new forms of strategic alliance, customized products, increasing levels of product variety, appearance of new trends toward quality issues and extension of the globalization phenomenon across and outside borders; flexibility is emerging as a competitive priority required to respond effectively to changing circumstances resulting from internal and external environments
Mix flexibility is loaded on three factors which are named and labeled as follows: x Mix flexibility based on range dimension (MIX_R). x Mix flexibility based on mobility dimension (MIX-M). x Mix flexibility based on uniformity dimension (MIX_U)
Summary
In today’s uncertain business environment characterized by rapid changes, advanced technology systems, complexity of customers’ requirements, new forms of strategic alliance, customized products, increasing levels of product variety, appearance of new trends toward quality issues (e.g. six sigma approach) and extension of the globalization phenomenon across and outside borders; flexibility is emerging as a competitive priority required to respond effectively to changing circumstances resulting from internal and external environments. If a firm deals proactively, tactical flexibilities result in fast and shorter response times to environmental changing conditions. Flexibility helps a firm to deal with internal and external environmental factors such as: shorter product life cycle, the market acceptance of the product, the ease of entry into the market, rapid technological change, entry of barriers, the availability of substitute products, and poor market acceptance. Flexibility according to Gupta and Somers (1996) has direct effects on an organization’s growth (financial) performance and would play a mediating role between business strategy and the organizational performance of firms
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