The integrated impact of new product and market flexibilities on operational performance: The case of the Jordanian manufacturing sector

• Published in: Journal of manufacturing technology management 2018-08, Vol.29 (7), p.1163-1187
• Main Authors: Alamro, Ahmed Salameh, Awwad, Abdulkareem Salameh, Anouze, Abdel Latef M.
• Format: Article
• Language: English
• Subjects: Advanced manufacturing technologies; Competition; Competitive advantage; Costs; Decisions; Developing countries; Economic reform; Factor analysis; Flexibility; Hypothesis testing; Inventory; LDCs; Manufacturing; Marketing; Operations management; Product development; Productivity; Researchers; Response time; Small business; Studies; Target markets; Wage & price controls
• ISSN: 1741-038X; 1758-7786
• DOI: 10.1108/JMTM-01-2017-0001

PurposeThe purpose of this paper is to investigate and test the relationship between a company’s strategic flexibility, as evidenced by new product development flexibility and market flexibility, and its operational performance (OP) in Jordanian manufacturing companies.Design/methodology/approachUsing a survey questionnaire, data were collected against two strategic decisions market and new product flexibility (NPF) from 222 middle and senior managers belonging to 116 Jordanian manufacturing firms. Confirmatory factor analysis was employed to investigate the effects of these two strategic decisions on OP.FindingsResults show a significant positive relationship between both NPF and market flexibility and OP. No significant differences between small and medium enterprises and large companies are found, indicating that the model is valid for both sizes. Also, the additional analyses suggest that the proposition that both NPF and market flexibility are important for OP was correct.Research limitations/implicationsOnly two strategic flexibility decisions were considered in this paper, however, researcher could investigate other strategic flexibility decisions on OP.Practical implicationsThe strategic flexibility level, in terms of NPF and market flexibility, that is needed for coping with uncertainty equips managers to handle challenges by enhancing the company’s controlled capacity through a considerable reduction in response time. An improvement in the company’s strategic flexibility enhances its overall performance and competitiveness and this, in turn, has a positive impact on its long-term sustainability.Originality/valueThe paper provides insights into the strategic flexibility decision practices in a Jordanian context. It provides further evidence that both market flexibility and NPF are significant in enhancing OP.