The relative impact of technology and sourcing practices in managing manufacturing flexibilities – Evidence from large and medium scale enterprises in India

Abstract

Manufacturing flexibilities improves an organization capability to respond to customer demands without incurring excessive time and cost penalties. The objective of this paper is to understand and explicate the nature of interaction between advanced manufacturing technology, sourcing practices and manufacturing flexibilities and assess their relative impact on different flexibilities for the trade off associated with the strategic choice between different methods of achieving manufacturing flexibilities. This research aims to report the findings of an exploratory study administered in North Indian medium and large manufacturing organizations, who are in the process of achieving the manufacturing flexibilities at all or various levels by acquiring, developing or utilizing the advanced manufacturing technology or by the use of specific/different sourcing practices. The statistical result suggests significant relationships between sourcing practices, advanced manufacturing technology and manufacturing flexibilities at different levels of manufacturing flexibility. The results also suggest that a organization could deploy specific sourcing practice or advanced manufacturing technology to target specific manufacturing flexibility in pursuit of agility-based competitive advantages.