IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v120y2009i1p18-29.html
   My bibliography  Save this article

How organizational flexibility affects new product development in an uncertain environment: Evidence from China

Author

Listed:
  • Liu, Yi
  • Li, Yuan
  • Wei, Zelong

Abstract

This study builds a conceptual model to describe the relationships between resource flexibility (RF), operational coordination flexibility (OCF), and new product introduction capability (NPIC) in operations management, and to explain the moderating effects of resource availability (RA) on the relationships between both types of flexibility and NPIC. Using sample data from Chinese firms, this study finds an inverse U-shaped relationship between resource flexibility and NPIC, and a positive relationship between coordination flexibility and NPIC. Furthermore, this study finds that resource availability negatively moderates the relationships between both types of flexibility and NPIC

Suggested Citation

  • Liu, Yi & Li, Yuan & Wei, Zelong, 2009. "How organizational flexibility affects new product development in an uncertain environment: Evidence from China," International Journal of Production Economics, Elsevier, vol. 120(1), pages 18-29, July.
    • Handle: RePEc:eee:proeco:v:120:y:2009:i:1:p:18-29
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925-5273(08)00326-5
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Atul Nerkar & Peter W. Roberts, 2004. "Technological and product‐market experience and the success of new product introductions in the pharmaceutical industry," Strategic Management Journal, Wiley Blackwell, vol. 25(8‐9), pages 779-799, August.
    2. Matsui, Yoshiki, 2007. "An empirical analysis of just-in-time production in Japanese manufacturing companies," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 153-164, July.
    3. Lee, Joo-Heon & Venkataraman, S., 2006. "Aspirations, market offerings, and the pursuit of entrepreneurial opportunities," Journal of Business Venturing, Elsevier, vol. 21(1), pages 107-123, January.
    4. Fernando F. Suarez & Michael A. Cusumano & Charles H. Fine, 1996. "An Empirical Study of Manufacturing Flexibility in Printed Circuit Board Assembly," Operations Research, INFORMS, vol. 44(1), pages 223-240, February.
    5. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer;The Psychometric Society, vol. 16(3), pages 297-334, September.
    6. Ron Sanchez, 1995. "Strategic flexibility in product competition," Strategic Management Journal, Wiley Blackwell, vol. 16(S1), pages 135-159.
    7. Mohan V. Tatikonda & Mitzi M. Montoya-Weiss, 2001. "Integrating Operations and Marketing Perspectives of Product Innovation: The Influence of Organizational Process Factors and Capabilities on Development Performance," Management Science, INFORMS, vol. 47(1), pages 151-172, January.
    8. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    9. MacMillan, Ian C. & Day, Diana L., 1987. "Corporate ventures into industrial markets: Dynamics of aggressive entry," Journal of Business Venturing, Elsevier, vol. 2(1), pages 29-39.
    10. Amoako-Gyampah, Kwasi & Acquaah, Moses, 2008. "Manufacturing strategy, competitive strategy and firm performance: An empirical study in a developing economy environment," International Journal of Production Economics, Elsevier, vol. 111(2), pages 575-592, February.
    11. Chang, An-Yuan, 2007. "On the measurement of routing flexibility: A multiple attribute approach," International Journal of Production Economics, Elsevier, vol. 109(1-2), pages 122-136, September.
    12. Ron Sanchez, 1997. "Preparing for an Uncertain Future," International Studies of Management & Organization, Taylor & Francis Journals, vol. 27(2), pages 71-94, June.
    13. Jay B. Barney, 1986. "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, INFORMS, vol. 32(10), pages 1231-1241, October.
    14. Yuan Li & Yi Liu & Feng Ren, 2007. "Product innovation and process innovation in SOEs: evidence from the Chinese transition," The Journal of Technology Transfer, Springer, vol. 32(1), pages 63-85, April.
    15. Corsten, Hans & Gossinger, Ralf, 2006. "Output flexibility of service enterprises -- an analysis based on production theory," International Journal of Production Economics, Elsevier, vol. 104(2), pages 296-307, December.
    16. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    17. Lau Antonio, K.W. & Yam, Richard C.M. & Tang, Esther, 2007. "The impacts of product modularity on competitive capabilities and performance: An empirical study," International Journal of Production Economics, Elsevier, vol. 105(1), pages 1-20, January.
    18. ANITA M. McGAHAN & MICHAEL E. PORTER, 1997. "How Much Does Industry Matter, Really?," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 15-30, July.
    19. Filson, Darren, 2002. "Product and process innovations in the life cycle of an industry," Journal of Economic Behavior & Organization, Elsevier, vol. 49(1), pages 97-112, September.
    20. Yuan Li & YongFeng Sun & Yi Liu, 2006. "An empirical study of SOEs' market orientation in transitional China," Asia Pacific Journal of Management, Springer, vol. 23(1), pages 93-113, March.
    21. John Child & Terence Tsai, 2005. "The Dynamic Between Firms’ Environmental Strategies and Institutional Constraints in Emerging Economies: Evidence from China and Taiwan," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 95-125, January.
    22. De Toni, Alberto & Tonchia, Stefano, 2005. "Definitions and linkages between operational and strategic flexibilities," Omega, Elsevier, vol. 33(6), pages 525-540, December.
    23. Donald Gerwin, 1993. "Manufacturing Flexibility: A Strategic Perspective," Management Science, INFORMS, vol. 39(4), pages 395-410, April.
    24. Matthew S. Kraatz & Edward J. Zajac, 2001. "How Organizational Resources Affect Strategic Change and Performance in Turbulent Environments: Theory and Evidence," Organization Science, INFORMS, vol. 12(5), pages 632-657, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Monika Stelmaszczyk & Agata Pierscieniak, 2020. "Strategic Flexibility as a Mediator in Relationship between Managerial Decisions and Organizational Learning: Ambidexterity Perspective," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 612-622.
    2. Li, Yuan & Wei, Zelong & Zhao, Jie & Zhang, Chenlu & Liu, Yi, 2013. "Ambidextrous organizational learning, environmental munificence and new product performance: Moderating effect of managerial ties in China," International Journal of Production Economics, Elsevier, vol. 146(1), pages 95-105.
    3. Gunday, Gurhan & Ulusoy, Gunduz & Kilic, Kemal & Alpkan, Lutfihak, 2011. "Effects of innovation types on firm performance," International Journal of Production Economics, Elsevier, vol. 133(2), pages 662-676, October.
    4. Jun Tian & Kanliang Wang & Yan Chen & Björn Johansson, 2010. "From IT deployment capabilities to competitive advantage: An exploratory study in China," Information Systems Frontiers, Springer, vol. 12(3), pages 239-255, July.
    5. Jin Li & Lulu Zhou & Xufan Zhang & Zhihong Chen & Feng Tian, 2018. "Technological Configuration Capability, Strategic Flexibility, and Organizational Performance in Chinese High-Tech Organizations," Sustainability, MDPI, vol. 10(5), pages 1-17, May.
    6. Sima Sabahi & Mahour M. Parast, 2023. "An operations and supply chain management perspective to product innovation," Operations Management Research, Springer, vol. 16(2), pages 808-829, June.
    7. Pino, Cesar & Felzensztein, Christian & Zwerg-Villegas, Anne Marie & Arias-Bolzmann, Leopoldo, 2016. "Non-technological innovations: Market performance of exporting firms in South America," Journal of Business Research, Elsevier, vol. 69(10), pages 4385-4393.
    8. Longwei Tian & Yuan Li, 2017. "Double-edged sword effect of independent innovations and foreign cooperation: evidence from China," The Journal of Technology Transfer, Springer, vol. 42(6), pages 1276-1291, December.
    9. Su, Meng & Rao, Vithala R., 2011. "Timing decisions of new product preannouncement and launch with competition," International Journal of Production Economics, Elsevier, vol. 129(1), pages 51-64, January.
    10. Wang, Longwei & Yeung, Jeff Hoi Yan & Zhang, Min, 2011. "The impact of trust and contract on innovation performance: The moderating role of environmental uncertainty," International Journal of Production Economics, Elsevier, vol. 134(1), pages 114-122, November.
    11. Sasan Torabzadeh Khorasani, 2018. "A Robust Optimization Model for Supply Chain in Agile and Flexible Mode Based on Variables of Uncertainty," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 19(3), pages 239-253, September.
    12. Nikunj Kumar Jain & Abinash Panda & Piyush Choudhary, 2020. "Institutional pressures and circular economy performance: The role of environmental management system and organizational flexibility in oil and gas sector," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3509-3525, December.
    13. Ma, Li & Zhai, Xin & Zhong, Weiguo & Zhang, Zhi-Xue, 2019. "Deploying human capital for innovation: A study of multi-country manufacturing firms," International Journal of Production Economics, Elsevier, vol. 208(C), pages 241-253.
    14. Chan, Alan T.L. & Ngai, Eric W.T. & Moon, Karen K.L., 2017. "The effects of strategic and manufacturing flexibilities and supply chain agility on firm performance in the fashion industry," European Journal of Operational Research, Elsevier, vol. 259(2), pages 486-499.
    15. Huo, Baofeng & Gu, Minhao & Jiang, Bin, 2018. "China-related POM research: Literature review and suggestions for future research," International Journal of Production Economics, Elsevier, vol. 203(C), pages 134-153.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhongfeng Su & En Xie & Dong Wang & Yuan Li, 2011. "Entrepreneurial strategy making, resources, and firm performance: evidence from China," Small Business Economics, Springer, vol. 36(2), pages 235-247, February.
    2. Thorsten Grohsjean & Tobias Kretschmer & Nils Stieglitz, 2011. "Performance Feedback, Firm Resources, and Strategic Change," DRUID Working Papers 11-02, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    3. Sima Sabahi & Mahour M. Parast, 2023. "An operations and supply chain management perspective to product innovation," Operations Management Research, Springer, vol. 16(2), pages 808-829, June.
    4. Chahal, Hardeep & Gupta, Mahesh & Bhan, Namrita & Cheng, T.C.E., 2020. "Operations management research grounded in the resource-based view: A meta-analysis," International Journal of Production Economics, Elsevier, vol. 230(C).
    5. Sardana, Deepak & Terziovski, Mile & Gupta, Narain, 2016. "The impact of strategic alignment and responsiveness to market on manufacturing firm's performance," International Journal of Production Economics, Elsevier, vol. 177(C), pages 131-138.
    6. Sanchez, Ron, 2004. "Understanding competence-based management: Identifying and managing five modes of competence," Journal of Business Research, Elsevier, vol. 57(5), pages 518-532, May.
    7. Jin Li & Lulu Zhou & Xufan Zhang & Zhihong Chen & Feng Tian, 2018. "Technological Configuration Capability, Strategic Flexibility, and Organizational Performance in Chinese High-Tech Organizations," Sustainability, MDPI, vol. 10(5), pages 1-17, May.
    8. Mehmet Ali Köseoglu & John A. Parnell & Melissa Yan Yee Yick, 2021. "Identifying influential studies and maturity level in intellectual structure of fields: evidence from strategic management," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(2), pages 1271-1309, February.
    9. Covin, Jeffrey G. & Garrett, Robert P. & Kuratko, Donald F. & Shepherd, Dean A., 2015. "Value proposition evolution and the performance of internal corporate ventures," Journal of Business Venturing, Elsevier, vol. 30(5), pages 749-774.
    10. Asif Ali & Ashok Aima & Jaya Bhasin & Robert D. Hisrich, 2021. "Measuring Entrepreneurial Orientation in Developing Economies: Scale Development and Validation," Jindal Journal of Business Research, , vol. 10(2), pages 147-162, December.
    11. João José M. Ferreira & Cristina I. Fernandes & Vanessa Ratten, 2016. "A co-citation bibliometric analysis of strategic management research," Scientometrics, Springer;Akadémiai Kiadó, vol. 109(1), pages 1-32, October.
    12. Tan, Justin & Wang, Liang, 2010. "Flexibility-efficiency tradeoff and performance implications among Chinese SOEs," Journal of Business Research, Elsevier, vol. 63(4), pages 356-362, April.
    13. Giovanni Gavetti, 2012. "PERSPECTIVE—Toward a Behavioral Theory of Strategy," Organization Science, INFORMS, vol. 23(1), pages 267-285, February.
    14. José Andrade & Mário Franco & Luis Mendes, 2021. "Technological capacity and organisational ambidexterity: the moderating role of environmental dynamism on Portuguese technological SMEs," Review of Managerial Science, Springer, vol. 15(7), pages 2111-2136, October.
    15. Eleonora Bartoloni & Alessandro Arrighetti & Fabio Landini, 2021. "Recession and firm survival: is selection based on cleansing or skill accumulation?," Small Business Economics, Springer, vol. 57(4), pages 1893-1914, December.
    16. Kazeminia, Ali, 2021. "Unfolding the airbus’ strategic growth: A successful case," Scandinavian Journal of Management, Elsevier, vol. 37(1).
    17. Allam Yousuf & Hossam Haddad & Miklos Pakurar & Serhii Kozlovskyi & Anastasiia Mohylova & Oksana Shlapak & Felfoldi Janos, 2019. "The Effect of Operational Flexibility on Performance: A Field Study on Small and Medium-sized Industrial Companies in Jordan," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 15(1), pages 47-60.
    18. Stoelhorst, J. W. & van Raaij, Erik M., 2004. "On explaining performance differentials: Marketing and the managerial theory of the firm," Journal of Business Research, Elsevier, vol. 57(5), pages 462-477, May.
    19. Hyoung-Goo Kang & Richard M. Burton & Will Mitchell, 2021. "How firm boundaries and relatedness jointly affect diversification value: trade-offs between governance and flexibility," Computational and Mathematical Organization Theory, Springer, vol. 27(1), pages 1-34, March.
    20. Basu, Sandip & Phelps, Corey & Kotha, Suresh, 2011. "Towards understanding who makes corporate venture capital investments and why," Journal of Business Venturing, Elsevier, vol. 26(2), pages 153-171, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:120:y:2009:i:1:p:18-29. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.