Sources of volume flexibility and their impact on performance

TLDR

The study aims to identify the drivers and sources of volume flexibility by examining three in‑depth case studies and a field survey of firms’ importance and actions regarding volume flexibility. Researchers employed three detailed case studies and a field survey to assess how firms value volume flexibility and the actions they take to maintain it. The findings show that managers prioritize volume flexibility for competitiveness, that multiple avenues exist for developing flexibility, that deployment depends on resources and systems, and that both short‑ and long‑term sources positively influence firm performance.

Abstract

Abstract This research uses three in‐depth case studies to establish the drivers and sources of volume flexibility. We find that in all three firms, there is significant concern among managers for gaining competitiveness through volume flexibility. We also find that there are several avenues for developing a volume flexible response and that deployment of these tactics is dependent on the availability of resources and systems. To verify some of these propositions we report on the outcomes of a field survey that measures the importance firms place on volume flexibility as well as the corresponding actions they take to remain volume flexible. Our critical finding is that short‐ and long‐term sources of volume flexibility have a positive, albeit differential, impact on a firm’s performance.