The Effects of Manufacturing Flexibility on Operational Performance; Acknowledging the Role of Innovation Capability
Author(s):
UNTUNG SETIYO PURWANTOI AND RAIHAN2
Tahun:
2015
Item Type:
Journal
ISSN/ISBN:
0973-4562
Keyword(s):
Manufacturing flexibility, innovation capability, operational performance, manufacturing SMEs
This study aims to examine the effect of manufacturing flexibility (five dimensions) on operational performance (three dimensions) and to examine the mediating effect of innovation capability (four dimensions) in the relationship between the two constructs. A cross-sectional survey design was appli... (selengkapnya)
DESKRIPSI
This study aims to examine the effect of manufacturing flexibility (five dimensions) on operational performance (three dimensions) and to examine the mediating effect of innovation capability (four dimensions) in the relationship between the two constructs. A cross-sectional survey design was applied involving 238 Indonesian manufacturing SMEs. data were analyzed using covariance-based structural equations modelling. The findings indicate that manufacturing flexibility was positively associated with operational performance and innovation capability as well. The findings also indicate that each of innovation capability types mediate positively, but not equally to the operational performance. This study highlights the importance of the mediating role of innovation capability when examining the relationship between manufacturing flexibility and the operational performance of manufacturing plants. The results imply that manufacturing SMEs need to search for and utilized their manufacturing flexibility competence to enhance their innovation capability and operational performance