The research attempts to evaluate whether services firms form a homogeneous body when applying managerial flexibility as compared to manufacturing firms. The paper examines the differential effects that exist regarding performance when faced with divergences in the levels of fit between the firm's real flexibility and that required by the environment on a strategic, structural and operational level. The hypotheses are tested using data from 417 European firms. The results show that a good fit between real and required operational flexibility has a more positive influence on business performance in service firms than in the manufacturing sector. Service firms, in the day‐to‐day context should have the capacity to change rapidly when successful operational practices in their adjacent environment change.
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