Understanding product flexibility using SAP–LAP approach

Abstract

The purpose of this study is to assess the overall role of product flexibility in providing sustainable growth to the organization. The Situation-Actor-Process–Learning Action-Performance (SAP–LAP) model technique has been used on Tata's Nano to show the importance of product flexibility in providing a competitive edge to organizations. Cases from the corporate world are cited and the SAP–LAP model is used to clear the ambiguity of the concept. It has been found that at strategic level product flexibility acts as a distinctive competence as the organization is able to react swiftly to the changing needs and preferences of customers through the improved versions of the product while at operational level, product flexibility proves its worth by hedging the firm against the uncertain demand trends. A conceptual framework of product flexibility is developed using other cases, and its link with organizational performance has been demonstrated. The study proposes a conceptual model of product flexibility, which needs to be tested empirically.