Achieving manufacturing flexibility through entrepreneurial orientation

Shih‐Chia Chang · Ru‐Jen Lin · Fu‐Jen Chang · Rong-Huei Chen

96 citations0/0 files storedIndustrial Management & Data Systems

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Entrepreneurship Studies and Influences Innovation and Knowledge Management Collaboration in agile enterprises

Abstract

Purpose Entrepreneurial orientation (EO) purportedly enhances a firm's competitive edge, but its alignment with specific dimensions of manufacturing flexibility has not been convincingly documented. The purpose of this study is to investigate the effects of several identifiable aspects of EO on particular types of manufacturing flexibility. Design/methodology/approach Using the data collected from 115 motherboard manufacturers, the study employs multiple regression analysis to examine the effects of entrepreneurial practices on manufacturing flexibility. Findings The statistical results lead to the following conclusions: autonomy, innovativeness, risk‐taking and proactiveness have significant positive effects on new product flexibility; autonomy, innovativeness, and competitive aggressiveness improve product mix flexibility; innovativeness, proactiveness, and competitive aggressiveness determine volume flexibility. Research limitations/implications The research focuses exclusively on external manufacturing flexibility, ignoring, for the time being, internal manufacturing flexibility factors. Practical implications The outcomes of the present study reveal that manufacturing flexibility cannot be achieved by simply installing a computer‐aided system; rather, it needs to be planned, managed, and integrated with a firm's entrepreneurial endeavors. Originality/value This is the first empirical study to investigate the effects of EO on manufacturing flexibility rather than on business performance, which most of the previous research on this topic has emphasized. In terms of practical applicability, the findings provide plant managers with valuable guidelines for improving manufacturing flexibility by undertaking appropriate entrepreneurial action.

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References

1985Competitive Advantage: Creating and Sustaining Superior Performance 1996Clarifying the Entrepreneurial Orientation Construct and Linking It To Performance 1990The Fifth Discipline 1989Strategic management of small firms in hostile and benign environments 1983The Correlates of Entrepreneurship in Three Types of Firms 1998Competitive advantage: creating and sustaining superior performance 1991Conventional wisdom on measurement: A structural equation perspective.2004Entrepreneurial orientation and small business performance: a configurational approach

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2015Strategic planning as a complex and enabling managerial tool 2021The mediating role of innovation between entrepreneurial orientation and supply chain resilience 2014Employees’ skills, manufacturing flexibility and performance: a structural equation modelling applied to the automotive industry 2014Manufacturing Flexibility Research: A Review of Literature and Agenda for Future Research 2021Does absorptive capacity moderate the relationship between entrepreneurial orientation and supply chain resilience?

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