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BUSINESS STRATEGY, MANUFACTURING FLEXIBILITY, AND ORGANIZATIONAL PERFORMANCE RELATIONSHIPS: A PATH ANALYSIS APPROACH
Author(s) -
Gupta Yash P.,
Somers Toni M.
Publication year - 1996
Publication title -
production and operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.279
H-Index - 110
eISSN - 1937-5956
pISSN - 1059-1478
DOI - 10.1111/j.1937-5956.1996.tb00395.x
Subject(s) - flexibility (engineering) , path analysis (statistics) , business , manufacturing , organizational performance , affect (linguistics) , empirical examination , process management , path (computing) , empirical research , industrial organization , test (biology) , operations management , knowledge management , marketing , computer science , management , economics , psychology , machine learning , programming language , paleontology , philosophy , communication , epistemology , actuarial science , biology
It has been argued in the literature that business strategy and manufacturing flexibility independently affect the performance of an organization. However, no empirical examination of the interrelationship among these three constructs has been performed. In this paper, based on a field study of 269 firms in the manufacturing industry, the identified constructs have been used to test a theoretical model using path analysis techniques. Our results indicate that business strategy contributes both directly and indirectly to organizational performance. The findings provide evidence of direct effects of (i) business strategy on manufacturing flexibility and (ii) manufacturing flexibility on organizational performance.