Strategic flexibility as a moderator of the relationship between commitment to employees and performance in service firms

Abstract

This paper examines the fit between organizational commitment to employees (OCE) and strategic flexibility. The complementariness between these two factors originates from the fact that the effect of OCE on a firm's performance depends on the type of strategic flexibility. We argue that the greater the degree of strategic flexibility, the greater the positive effect of OCE on organizational performance. Using data from a random sample of 230 service firms, the empirical results partially support this hypothesis.