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Exploitation versus exploration: the influence of manufacturing flexibility and the environment

Author

Listed:
  • Javier Tamayo Torres
  • Jose Benitez-Amado
  • Ma. Nieves Perez-Arostegui
  • Vanesa Barrales-Molina

Abstract

Environmental dynamics have transformed manufacturing flexibility into one of the strategic keys for organisations. This paper analyses whether the implementation of manufacturing flexibility, as solution to the continuous changes of the environment, will encourage exploration of new knowledge and exploitation of a company's abilities. This relationship was measured in 231 production firms. The results obtained show that the firms develop exploration of new knowledge at the same time as they exploit their abilities. The results also show that some of the dimensions of manufacturing flexibility encourage the development of both exploration and exploitation. Finally, we find a moderator effect in these relationships if we take into account environmental dynamics.

Suggested Citation

  • Javier Tamayo Torres & Jose Benitez-Amado & Ma. Nieves Perez-Arostegui & Vanesa Barrales-Molina, 2011. "Exploitation versus exploration: the influence of manufacturing flexibility and the environment," International Journal of Business Environment, Inderscience Enterprises Ltd, vol. 4(1), pages 92-105.
    • Handle: RePEc:ids:ijbenv:v:4:y:2011:i:1:p:92-105
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