Taxonomy of Manufacturing Firms’ Flexibility Under Influence of Dynamic Organizational Capabilities

Abstract

Many scholars mentioned various dimensions and complex relations for manufacturing flexibility that implementing all of them is not possible for a manufacturing firm. On the other hand, today’s dynamic environment convinces flexible organizations to create capabilities in order to take over competitors. Hence, the aim of this study is to determine dominant groups of flexibility for manufacturing firms and to prioritize them under the influence of dynamic organizational capabilities. In this research, firstly components of dynamic organizational capabilities and flexibility of manufacturing are identified by content analysis method. Then, based on that, taxonomy for Iran’s manufacturing firms was determined using support vector machine algorithm. In the next step, based on experts’ view using FDEMATEL method, conceptual model for relationship of manufacturing flexibility dimension as well as dynamic capabilities are provided. Conceptual model in three flexibility clusters was tested by structural equation modeling, and dominant groups were prioritized based on dynamic organizational capabilities. Results show that the best number of clusters is three. Results also show that dynamic organizational capabilities not only affect flexibility dimensions of manufacturing but also this influence is different in manufacturing firms with various industry fields.