Manufacturing flexibility and business strategy: an empirical study of small and medium sized firms

This study investigates the practice of manufacturing flexibility in small and medium sized firms. Using the data collected from 87 firms from machinery and machine tool industries in Taiwan, we analyzed and prescribed the alignment of various manufacturing flexibility dimensions with business strategies. Several practical approaches to developing manufacturing flexibility in small and medium sized firms were discussed. In addition, statistical results indicate that the compatibility between business strategy and manufacturing flexibility is critical to business performance. The one-to-one relationship between business strategy and manufacturing flexibility is established to enable managers to set clear priorities in investing and developing necessary manufacturing flexibility. (C) 2002 Elsevier Science B.V. All rights reserved.