Building new competitive advantage through match between specific types of strategic flexibility and sourcing strategy

Strategic flexibility, sourcing strategy and organisational performance are often a source of contention among firms in manufacturing sector.This paper explores the effects of specific types of strategic flexibility â-“ related and unrelated product diversification â-“ that matched with specific typ...

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Main Authors: Abdullah, Haim Hilman, Mohamed, Zainal Abidin
Format: Article
Published: Inderscience Publishers 2011
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Online Access:http://repo.uum.edu.my/7158/
http://dx.doi.org/10.1504/JGBA.2011.043525
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spelling my.uum.repo.71582016-12-06T03:54:23Z http://repo.uum.edu.my/7158/ Building new competitive advantage through match between specific types of strategic flexibility and sourcing strategy Abdullah, Haim Hilman Mohamed, Zainal Abidin HF Commerce Strategic flexibility, sourcing strategy and organisational performance are often a source of contention among firms in manufacturing sector.This paper explores the effects of specific types of strategic flexibility â-“ related and unrelated product diversification â-“ that matched with specific types of sourcing strategy â-“ make and buy. Questionnaires were sent to respondents who were top management officers of firms from four major manufacturing sectors: electrical and electronics, chemicals including petroleum, food and beverages, and fabricated metal. The results confirmed that a specific type of sourcing strategy (make or buy) mediated a specific type of strategic flexibility (related or unrelated product diversification). Specifically, the make strategy partially mediated the relationship between related product diversification strategy and organisational performance, whereas the buy strategy partially mediated the relationship between unrelated product diversification strategy and organisational performance.These findings go along with the theories that support both constructs: industrial organisation theory, transaction cost theory and resource-based view. All these findings would enable practitioners to make better manufacturing and sourcing decisions. Inderscience Publishers 2011 Article PeerReviewed Abdullah, Haim Hilman and Mohamed, Zainal Abidin (2011) Building new competitive advantage through match between specific types of strategic flexibility and sourcing strategy. Journal for Global Business Advancement, 4 (4). pp. 356-367. ISSN 1746-966X http://dx.doi.org/10.1504/JGBA.2011.043525 doi:10.1504/JGBA.2011.043525
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
topic HF Commerce
spellingShingle HF Commerce
Abdullah, Haim Hilman
Mohamed, Zainal Abidin
Building new competitive advantage through match between specific types of strategic flexibility and sourcing strategy
description Strategic flexibility, sourcing strategy and organisational performance are often a source of contention among firms in manufacturing sector.This paper explores the effects of specific types of strategic flexibility â-“ related and unrelated product diversification â-“ that matched with specific types of sourcing strategy â-“ make and buy. Questionnaires were sent to respondents who were top management officers of firms from four major manufacturing sectors: electrical and electronics, chemicals including petroleum, food and beverages, and fabricated metal. The results confirmed that a specific type of sourcing strategy (make or buy) mediated a specific type of strategic flexibility (related or unrelated product diversification). Specifically, the make strategy partially mediated the relationship between related product diversification strategy and organisational performance, whereas the buy strategy partially mediated the relationship between unrelated product diversification strategy and organisational performance.These findings go along with the theories that support both constructs: industrial organisation theory, transaction cost theory and resource-based view. All these findings would enable practitioners to make better manufacturing and sourcing decisions.
format Article
author Abdullah, Haim Hilman
Mohamed, Zainal Abidin
author_facet Abdullah, Haim Hilman
Mohamed, Zainal Abidin
author_sort Abdullah, Haim Hilman
title Building new competitive advantage through match between specific types of strategic flexibility and sourcing strategy
title_short Building new competitive advantage through match between specific types of strategic flexibility and sourcing strategy
title_full Building new competitive advantage through match between specific types of strategic flexibility and sourcing strategy
title_fullStr Building new competitive advantage through match between specific types of strategic flexibility and sourcing strategy
title_full_unstemmed Building new competitive advantage through match between specific types of strategic flexibility and sourcing strategy
title_sort building new competitive advantage through match between specific types of strategic flexibility and sourcing strategy
publisher Inderscience Publishers
publishDate 2011
url http://repo.uum.edu.my/7158/
http://dx.doi.org/10.1504/JGBA.2011.043525
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score 12.845895