An empirical study of manufacturing flexibility of exporting firms in China : how do strategic and organizational contexts matter?
Document Type
Journal article
Source Publication
Industrial Marketing Management
Publication Date
8-1-2008
Volume
37
Issue
6
First Page
738
Last Page
751
Publisher
Elsevier Inc.
Keywords
Flexibility; Competence and capability theory; Contingency perspective; Firm performance
Abstract
Using evidence from exporting firms in China, this research aims to determine the conditions that foster manufacturing flexibility and the way in which firms support it. The contingency perspective and the competence and capability theory are utilized to develop a framework to enhance the knowledge of internal competence, external flexibility, and manufacturing performance, and the understanding of the moderating roles of strategic and organizational choice on the competence–flexibility and flexibility–performance relationships. Empirical evidence from a sample of 222 export product/market ventures confirmed the main effect that manufacturing, assembly outsourcing, and marketing competencies support a firm's manufacturing flexibility and in turn enhance manufacturing performance. Several notable moderating effects were also identified. Although a strategic emphasis on low-cost manufacturing and long-term contracting weakens a firm's transformation of core competencies into flexible capabilities, specific organizational choices regarding private ownership and direct exporting strengthen the conversion of manufacturing flexibility to superior manufacturing performance.
DOI
10.1016/j.indmarman.2007.05.007
Print ISSN
00198501
E-ISSN
18732062
Publisher Statement
Copyright © 2007 Elsevier Inc. All rights reserved.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Li, L.-y., & Ogunmokun, G. O. (2008). An empirical study of manufacturing flexibility of exporting firms in China: How do strategic and organizational contexts matter? Industrial Marketing Management, 37(6), 738-751. doi: 10.1016/j.indmarman.2007.05.007