Achieving manufacturing flexibility through entrepreneurial orientation

Abstract

Purpose Entrepreneurial orientation (EO) purportedly enhances a firm's competitive edge, but its alignment with specific dimensions of manufacturing flexibility has not been convincingly documented. The purpose of this study is to investigate the effects of several identifiable aspects of EO on particular types of manufacturing flexibility. Design/methodology/approach Using the data collected from 115 motherboard manufacturers, the study employs multiple regression analysis to examine the effects of entrepreneurial practices on manufacturing flexibility. Findings The statistical results lead to the following conclusions: autonomy, innovativeness, risk‐taking and proactiveness have significant positive effects on new product flexibility; autonomy, innovativeness, and competitive aggressiveness improve product mix flexibility; innovativeness, proactiveness, and competitive aggressiveness determine volume flexibility. Research limitations/implications The research focuses exclusively on external manufacturing flexibility, ignoring, for the time being, internal manufacturing flexibility factors. Practical implications The outcomes of the present study reveal that manufacturing flexibility cannot be achieved by simply installing a computer‐aided system; rather, it needs to be planned, managed, and integrated with a firm's entrepreneurial endeavors. Originality/value This is the first empirical study to investigate the effects of EO on manufacturing flexibility rather than on business performance, which most of the previous research on this topic has emphasized. In terms of practical applicability, the findings provide plant managers with valuable guidelines for improving manufacturing flexibility by undertaking appropriate entrepreneurial action.