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

Article


Li, Ling-yee and Ogunmokun, Gabriel O.. 2008. "An empirical study of manufacturing flexibility of exporting firms in China: how do strategic and organizational contexts matter?" Industrial Marketing Management. 37 (6), pp. 738-751. https://doi.org/10.1016/j.indmarman.2007.05.007
Article Title

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

ERA Journal ID19793
Article CategoryArticle
AuthorsLi, Ling-yee (Author) and Ogunmokun, Gabriel O. (Author)
Journal TitleIndustrial Marketing Management
Journal Citation37 (6), pp. 738-751
Number of Pages14
Year2008
Place of PublicationNew York, NY. United States
ISSN0019-8501
1873-2062
Digital Object Identifier (DOI)https://doi.org/10.1016/j.indmarman.2007.05.007
Web Address (URL)http://www.sciencedirect.com/science/article/pii/S0019850107000703
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.

Keywordsflexibility; competence and capability theory; contingency perspective; firm performance
ANZSRC Field of Research 2020380109. Industry economics and industrial organisation
350715. Quality management
350711. Organisational planning and management
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Byline AffiliationsLingnan University of Hong Kong, China
Department of Marketing and Tourism
Institution of OriginUniversity of Southern Queensland
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