IDEAS home Printed from https://ideas.repec.org/a/rbs/ijbrss/v11y2022i3p33-43.html
   My bibliography  Save this article

The influence of resource flexibility and product complexity on operational performance moderated by employee competence in Indonesian defense industry

Author

Listed:
  • Himawan Hatmanto

    (Faculty of Economics and Business, University of Brawijayai Indonesia)

  • Agung Yuniarinto

    (Faculty of Economics and Business, University of Brawijayai Indonesia)

  • Surachman

    (Faculty of Economics and Business, University of Brawijayai Indonesia)

Abstract

Operational performance reflects the company’s operating performance in terms of waste reduction, product quality improvement, and product delivery. This study examines the effect of resource flexibility and product complexity on operational performance moderated by employee competence in the Indonesian defense industry at PT. Pindad (Persero) Turen, Malang. 194 employees who work in the production function are sampled in this research. The data analysis model used is a structural equation model with a Partial Least Square approach using SmartPLS 3.0 software. The results show that resource flexibility has a positive and significant effect on operational performance, product complexity does not affect operational performance, and employee competence has a positive and significant effect on operational performance. The moderation test shows that employee competence strengthens the effect of resource flexibility on operational performance and employee competence does not weaken or strengthen the effect of product complexity on operational performance. Key Words:Resource Flexibility, Product Complexity, Operasional Performance, Employee Competence

Suggested Citation

  • Himawan Hatmanto & Agung Yuniarinto & Surachman, 2022. "The influence of resource flexibility and product complexity on operational performance moderated by employee competence in Indonesian defense industry," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(3), pages 33-43, April.
    • Handle: RePEc:rbs:ijbrss:v:11:y:2022:i:3:p:33-43
    DOI: 10.20525/ijrbs.v11i3.1741
    as

    Download full text from publisher

    File URL: http://ssbfnet.com/ojs/index.php/ijrbs/article/view/1741/1242
    Download Restriction: no
    File URL: https://doi.org/10.20525/ijrbs.v11i3.1741
    Download Restriction: no
    File URL: https://libkey.io/10.20525/ijrbs.v11i3.1741?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Cardy, Robert L. & Selvarajan, T.T., 2006. "Competencies: Alternative frameworks for competitive advantage," Business Horizons, Elsevier, vol. 49(3), pages 235-245.
    2. Leslie E. Palich & Laura B. Cardinal & C. Chet Miller, 2000. "Curvilinearity in the diversification–performance linkage: an examination of over three decades of research," Strategic Management Journal, Wiley Blackwell, vol. 21(2), pages 155-174, February.
    3. Diwakar Gupta & Mandyam M. Srinivasan, 1998. "Note: How Does Product Proliferation Affect Responsiveness?," Management Science, INFORMS, vol. 44(7), pages 1017-1020, July.
    4. Dominik Eckstein & Matthias Goellner & Constantin Blome & Michael Henke, 2015. "The performance impact of supply chain agility and supply chain adaptability: the moderating effect of product complexity," International Journal of Production Research, Taylor & Francis Journals, vol. 53(10), pages 3028-3046, May.
    5. Shakun Preet Kaur & Jatinder Kumar & Rakesh Kumar, 2017. "The Relationship Between Flexibility of Manufacturing System Components, Competitiveness of SMEs and Business Performance: A Study of Manufacturing SMEs in Northern India," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 18(2), pages 123-137, June.
    6. Paul M. Swamidass & William T. Newell, 1987. "Manufacturing Strategy, Environmental Uncertainty and Performance: A Path Analytic Model," Management Science, INFORMS, vol. 33(4), pages 509-524, April.
    7. Yu-Je Lee & Ching-Ho Chen, 2014. "The Effects of Flexible Manufacturing Capabilities and Logistics Capabilities Upon Organizational Performance: Using Cloud Technology Investment as the Moderator," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 4(10), pages 488-502.
    8. Avi Fiegenbaum & Aneel Karnani, 1991. "Output flexibility—A competitive advantage for small firms," Strategic Management Journal, Wiley Blackwell, vol. 12(2), pages 101-114, February.
    9. Yu-Je Lee & Ching-Ho Chen, 2014. "The effects of flexible manufacturing capabilities and logistics capabilities upon organizational performance: Using cloud technology investment as the moderator," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 4(10), pages 488-502, October.
    10. Charles H. Fine & Arnoldo C. Hax, 1985. "Manufacturing Strategy: A Methodology and an Illustration," Interfaces, INFORMS, vol. 15(6), pages 28-46, December.
    11. Huo, Baofeng & Ye, Yuxiao & Zhao, Xiande & Zhu, Kaihang, 2019. "Supply chain quality integration: A taxonomy perspective," International Journal of Production Economics, Elsevier, vol. 207(C), pages 236-246.
    12. Bendickson, Joshua S. & Chandler, Timothy D., 2019. "Operational performance: The mediator between human capital developmental programs and financial performance," Journal of Business Research, Elsevier, vol. 94(C), pages 162-171.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yu, Kangkang & Cadeaux, Jack & Luo, Ben Nanfeng, 2015. "Operational flexibility: Review and meta-analysis," International Journal of Production Economics, Elsevier, vol. 169(C), pages 190-202.
    2. Chahal, Hardeep & Gupta, Mahesh & Bhan, Namrita & Cheng, T.C.E., 2020. "Operations management research grounded in the resource-based view: A meta-analysis," International Journal of Production Economics, Elsevier, vol. 230(C).
    3. Chang Liu & Zhen Li & Jiafu Tang & Xuequn Wang & Ming-Jong Yao, 2022. "How SERU production system improves manufacturing flexibility and firm performance: an empirical study in China," Annals of Operations Research, Springer, vol. 316(1), pages 529-554, September.
    4. Shakun Preet Kaur & Jatinder Kumar & Rakesh Kumar, 2017. "The Relationship Between Flexibility of Manufacturing System Components, Competitiveness of SMEs and Business Performance: A Study of Manufacturing SMEs in Northern India," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 18(2), pages 123-137, June.
    5. Allam Yousuf & Hossam Haddad & Miklos Pakurar & Serhii Kozlovskyi & Anastasiia Mohylova & Oksana Shlapak & Felfoldi Janos, 2019. "The Effect of Operational Flexibility on Performance: A Field Study on Small and Medium-sized Industrial Companies in Jordan," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 15(1), pages 47-60.
    6. Avella, Lucía & Fernández, Esteban & Vázquez, Camilo J., 1999. "The large Spanish industrial company: strategies of the most competitive factories," Omega, Elsevier, vol. 27(5), pages 497-514, October.
    7. Li, Siyu & Huo, Baofeng & Wang, Qiang, 2023. "The impact of buyer-supplier communication on performance: A contingency and configuration approach," International Journal of Production Economics, Elsevier, vol. 257(C).
    8. Hallgren, Mattias & Olhager, Jan, 2006. "Quantification in manufacturing strategy: A methodology and illustration," International Journal of Production Economics, Elsevier, vol. 104(1), pages 113-124, November.
    9. Aleda V. Roth, 2007. "Applications of Empirical Science in Manufacturing and Service Operations," Manufacturing & Service Operations Management, INFORMS, vol. 9(4), pages 353-367.
    10. Boyer, Kenneth K. & Leong, G. Keong, 1996. "Manufacturing flexibility at the plant level," Omega, Elsevier, vol. 24(5), pages 495-510, October.
    11. Ye, Yu & Yu, Qionglei & Zheng, Yongjun & Zheng, Yi, 2022. "Investigating the effect of social media application on firm capabilities and performance: The perspective of dynamic capability view," Journal of Business Research, Elsevier, vol. 139(C), pages 510-519.
    12. Mwangola, Willis N. & Mackelprang, Alan W. & Burke, Gerard J., 2024. "Performing in Uncertain Operating Environments: Buffer Inventory, Volume Flexibility or Both?," International Journal of Production Economics, Elsevier, vol. 268(C).
    13. Badri, Masood A. & Davis, Donald & Davis, Donna, 2000. "Operations strategy, environmental uncertainty and performance: a path analytic model of industries in developing countries," Omega, Elsevier, vol. 28(2), pages 155-173, April.
    14. Simona Alfiero & Laura Broccardo & Massimo Cane & Alfredo Esposito, 2018. "High Performance Through Innovation Process Management in SMEs. Evidence from the Italian wine sector," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2018(3), pages 87-110.
    15. Sujan Piya & Ahm Shamsuzzoha & Mohammad Khadem & Nasr Al-Hinai, 2020. "Identification of Critical Factors and Their Interrelationships to Design Agile Supply Chain: Special Focus to Oil and Gas Industries," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(3), pages 263-281, September.
    16. López Zapata, Esteban & García Muiña, Fernando Enrique & García, Susana María, 2019. "Analysing the relationship between diversification strategy and firm performance: the role of the economic cycle," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    17. Zhang, Qingyu & Vonderembse, Mark A. & Cao, Mei, 2009. "Product concept and prototype flexibility in manufacturing: Implications for customer satisfaction," European Journal of Operational Research, Elsevier, vol. 194(1), pages 143-154, April.
    18. H. Mahesh Prabhu & Amit Kumar Srivastava, 2023. "CEO Transformational Leadership, Supply Chain Agility and Firm Performance: A TISM Modeling among SMEs," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 24(1), pages 51-65, March.
    19. Markus Menz & Sven Kunisch & Julian Birkinshaw & David J. Collis & Nicolai J. Foss & Robert E. Hoskisson & John E. Prescott, 2021. "Corporate Strategy and the Theory of the Firm in the Digital Age," Journal of Management Studies, Wiley Blackwell, vol. 58(7), pages 1695-1720, November.
    20. Joon Mahn Lee & Rahul Kapoor, 2017. "Complementarities and Coordination: Implications for Governance Mode and Performance of Multiproduct Firms," Organization Science, INFORMS, vol. 28(5), pages 931-946, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijbrss:v:11:y:2022:i:3:p:33-43. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.