Specific match between specific types of strategic flexibility and sourcing strategy: another strategic approach to build competitive advantage

Strategic flexibility, sourcing strategy and organisational performance are often a source of contention among firms in manufacturing sectors. This paper explores effects of specific types of strategic flexibility and product diversifications (related and unrelated) on strategic sourcing of make and...

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Main Authors: Abdullah, Haim Hilman, Mohamed, Zainal Abidin
Format: Article
Published: Inderscience Publishers 2013
Subjects:
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author Abdullah, Haim Hilman
Mohamed, Zainal Abidin
author_facet Abdullah, Haim Hilman
Mohamed, Zainal Abidin
author_sort Abdullah, Haim Hilman
collection UUM
description Strategic flexibility, sourcing strategy and organisational performance are often a source of contention among firms in manufacturing sectors. This paper explores effects of specific types of strategic flexibility and product diversifications (related and unrelated) on strategic sourcing of make and buy. Questionnaires were sent to top management personnel of firms in four manufacturing sectors namely electrical and electronics, chemicals (including petroleum), food and beverages and fabricated metal. The results confirmed that the make or buy sourcing strategy acts as mediators and it partially does so on the relationship between related product diversification strategy and organisational performance. In addition, the buy strategy mediated partially the relationship between unrelated product diversification strategy and organisational performance. These findings go along with the theories that support both constructs, Industrial Organisation (IO) Theory, Transaction Cost Theory and Resource–Based View (RBV). All these findings should enable practitioners to make better manufacturing and sourcing decisions.
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spelling uum-191542016-11-10T04:51:40Z https://repo.uum.edu.my/id/eprint/19154/ Specific match between specific types of strategic flexibility and sourcing strategy: another strategic approach to build competitive advantage Abdullah, Haim Hilman Mohamed, Zainal Abidin HD28 Management. Industrial Management Strategic flexibility, sourcing strategy and organisational performance are often a source of contention among firms in manufacturing sectors. This paper explores effects of specific types of strategic flexibility and product diversifications (related and unrelated) on strategic sourcing of make and buy. Questionnaires were sent to top management personnel of firms in four manufacturing sectors namely electrical and electronics, chemicals (including petroleum), food and beverages and fabricated metal. The results confirmed that the make or buy sourcing strategy acts as mediators and it partially does so on the relationship between related product diversification strategy and organisational performance. In addition, the buy strategy mediated partially the relationship between unrelated product diversification strategy and organisational performance. These findings go along with the theories that support both constructs, Industrial Organisation (IO) Theory, Transaction Cost Theory and Resource–Based View (RBV). All these findings should enable practitioners to make better manufacturing and sourcing decisions. Inderscience Publishers 2013 Article PeerReviewed Abdullah, Haim Hilman and Mohamed, Zainal Abidin (2013) Specific match between specific types of strategic flexibility and sourcing strategy: another strategic approach to build competitive advantage. Journal for Global Business Advancement, 6 (2). p. 167. ISSN 1746-966X http://doi.org/10.1504/JGBA.2013.053569 doi:10.1504/JGBA.2013.053569 doi:10.1504/JGBA.2013.053569
spellingShingle HD28 Management. Industrial Management
Abdullah, Haim Hilman
Mohamed, Zainal Abidin
Specific match between specific types of strategic flexibility and sourcing strategy: another strategic approach to build competitive advantage
title Specific match between specific types of strategic flexibility and sourcing strategy: another strategic approach to build competitive advantage
title_full Specific match between specific types of strategic flexibility and sourcing strategy: another strategic approach to build competitive advantage
title_fullStr Specific match between specific types of strategic flexibility and sourcing strategy: another strategic approach to build competitive advantage
title_full_unstemmed Specific match between specific types of strategic flexibility and sourcing strategy: another strategic approach to build competitive advantage
title_short Specific match between specific types of strategic flexibility and sourcing strategy: another strategic approach to build competitive advantage
title_sort specific match between specific types of strategic flexibility and sourcing strategy another strategic approach to build competitive advantage
topic HD28 Management. Industrial Management
work_keys_str_mv AT abdullahhaimhilman specificmatchbetweenspecifictypesofstrategicflexibilityandsourcingstrategyanotherstrategicapproachtobuildcompetitiveadvantage
AT mohamedzainalabidin specificmatchbetweenspecifictypesofstrategicflexibilityandsourcingstrategyanotherstrategicapproachtobuildcompetitiveadvantage