Effects of absorptive capacity and innovation spillover on manufacturing flexibility
International Journal of Productivity and Performance Management
ISSN: 1741-0401
Article publication date: 16 February 2021
Issue publication date: 6 May 2022
Abstract
Purpose
Shifting demand and ever-shorter production cycles pressure manufacturing flexibility. Although the literature has established the positive effect of the firm's absorptive capacity on manufacturing flexibility, the separate role of the innovation competencies of exploitation and exploration in such a relationship is still under-investigated. In this study, the authors examine how these competencies affect manufacturing flexibility.
Design/methodology/approach
The authors use survey data from 370 manufacturing firms and analyze them using covariance-based structural equation modeling (CB–SEM).
Findings
The results indicate that absorptive capacity has a strong, positive and direct effect on exploitative and exploratory innovation competencies, proactive and responsive market orientations, and manufacturing flexibility. The authors’ findings also demonstrate that the exploitative innovation competencies mediate the relation between responsive market orientation and manufacturing flexibility. Essentially, these exploitative innovation competencies produce a direct positive effect on manufacturing flexibility while simultaneously being a vehicle for absorptive capacity's indirect effects on it. An exploration innovation strategy does not significantly affect manufacturing flexibility.
Originality/value
This study contributes by combining key strategic features of firms with manufacturing flexibility, while providing new empirical evidence of the mediation of the exploitative innovation competencies in the relation between responsive market orientation and manufacturing flexibility.
Keywords
Acknowledgements
Funding: Graça Miranda Silva acknowledges the support of national funds through FCT - Fundação para a Ciência e a Tecnologia, I.P., Project UIDB/04521/2020.Availability of data and material: The authors are available to make available, upon request, the data and for a period of five years after publication to other researchers interested in replicating and/or extending the work.
Citation
Pinheiro, J., Lages, L.F., Silva, G.M., Dias, A.L. and Preto, M.T. (2022), "Effects of absorptive capacity and innovation spillover on manufacturing flexibility", International Journal of Productivity and Performance Management, Vol. 71 No. 5, pp. 1786-1809. https://doi.org/10.1108/IJPPM-04-2020-0156
Publisher
:Emerald Publishing Limited
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