An empirical study of manufacturing flexibility of exporting firms in China : how do strategic and organizational contexts matter?

Ling Yee, Esther LI, Gabriel O. OGUNMOKUN

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

20 Citations (Scopus)

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.
Original languageEnglish
Pages (from-to)738-751
Number of pages14
JournalIndustrial Marketing Management
Volume37
Issue number6
DOIs
Publication statusPublished - 1 Aug 2008

Fingerprint

Manufacturing flexibility
Organizational context
Exporting
China
Empirical study
Manufacturing performance
Contracting
Contingency perspective
Empirical evidence
Marketing
Manufacturing cost
Competency
Venture
Moderating effect
Core competencies
Manufacturing
Outsourcing
Product market
Private ownership

Keywords

  • Flexibility; Competence and capability theory; Contingency perspective; Firm performance

Cite this

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title = "An empirical study of manufacturing flexibility of exporting firms in China : how do strategic and organizational contexts matter?",
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.",
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An empirical study of manufacturing flexibility of exporting firms in China : how do strategic and organizational contexts matter? / LI, Ling Yee, Esther; OGUNMOKUN, Gabriel O.

In: Industrial Marketing Management, Vol. 37, No. 6, 01.08.2008, p. 738-751.

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

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