Manufacturing flexibility and manufacturing proactiveness: Empirical evidence from the motherboard industry

Improvement of flexibility is among the top concerns of manufacturing managers, however, managers are advised to choose the appropriate types of flexibility needed in their plants. The purpose of this study is to investigate the effects of manufacturing proactiveness dimensions (manufacturing involvement, commitment to manufacturing technology advancements and multi‐skilled workforce developments, and manufacturing's integration with marketing and design functions) on three types of manufacturing flexibility (new product, volume, and product mix).

Using the data collected from 108 motherboard manufacturers in Taiwan, this study develops valid and reliable measures of manufacturing proactiveness and flexibility. The study used multiple regression analysis to examine how different proactiveness dimensions link with specific types of manufacturing flexibility.

The study found that manufacturing involvement, multi‐skilled workforce developments, and manufacturing/design integration have significant positive effects on new product flexibility. Statistical results indicated that manufacturing technology advancements, multi‐skilled workforce developments, and manufacturing/design integration lead to better product mix flexibility. In addition, manufacturing involvement, manufacturing technology advancements, and manufacturing/marketing collaboration are determinants of volume flexibility. This research provides deeper insights regarding the impact of manufacturing flexibility upon the proactiveness programs.

This research focuses on the effect of manufacturing proactiveness only on external manufacturing flexibility. It does not address the issue of internal manufacturing flexibility. The use of a single indicator for the manufacturing flexibility measure may limit the generalization of the statistical results.

These findings have two main managerial implications. With rigorous and comprehensive measures of proactiveness, investigations of its impact on competitive priorities (e.g. delivery, cost, and quality) are issues to be addressed in future studies of manufacturing strategy. Outcomes of the research also enable practitioners to implement the appropriate practices of manufacturing proactiveness based on the specific types of manufacturing flexibility which their plants require.

The uniqueness of this paper is twofold. It is the only empirical study to explore the relationship between manufacturing proactiveness and flexibility from the manufacturing strategy process aspect. This may inspire researchers to focus on other related process issues such as the effect of supplier or customer involvement on manufacturing flexibility. The study also generated five dimensions of manufacturing proactiveness that differ from previous empirical works which overlooked the critical factors of manufacturing/design integration and manufacturing/marketing collaboration. Future researchers and practitioners should be able to apply these results to study and assess related issues of manufacturing proactiveness more rigorously and precisely.