Conceptualising complementarities in manufacturing flexibility: a comprehensive view

In this paper, we develop an extended view of the manufacturing flexibility construct. Instead of a sequential view as emphasised with the competence-capability perspective, the model presented in this study suggests a holistic view of manufacturing flexibility comprised of six complementary dimensions. We contend that the complementary view of manufacturing flexibility (MFLX) consisting of six dimensions – product-mix flexibility (PMX), routing flexibility (RTG), equipment flexibility (EQP), volume flexibility (VOL), labour flexibility (LBR), and supply management flexibility (SPM) – provides a path to implementation of manufacturing flexibility. Manufacturing flexibility is hypothesised as a second order construct comprised of the six complementary dimensions. We test our proposed model using data collected from US manufacturing organisations. Structural equation modelling was used to analyse the data. The results of confirmatory factor analysis support our hypothesis of a second order multi-dimensional construct structure. This comprehensive conceptualisation of manufacturing flexibility should help researchers evaluate the effect of manufacturing flexibility on operational and financial performance.