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The Relationship Between Flexibility of Manufacturing System Components, Competitiveness of SMEs and Business Performance: A Study of Manufacturing SMEs in Northern India

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Listed:
  • Shakun Preet Kaur

    (NIT)

  • Jatinder Kumar

    (NIT)

  • Rakesh Kumar

    (SBSSTC)

Abstract

The rapid changes in the manufacturing environment have become the greatest challenge for a manufacturing unit. This leads to the demand for change from the traditional manufacturing strategies to more flexible strategies. To sustain in the hyper-competitive market, a flexible system strategy is required. For designing such strategies and policies, it is important to know the factors that influence the performance of the system. The aim of this paper is to establish the relationship between the flexibility of components of a manufacturing system (machine, material handling and worker), competitiveness and business performance of small and medium scale enterprises (SMEs). A survey was conducted in SMEs of northern India. Three sectors, namely automotive, machine tool and light engineering (mechanical components and equipment), were analysed under manufacturing SMEs. The study contributes towards investigating the effect of the machine, material handling and worker flexibility on competitiveness and further competitiveness on business performance of manufacturing firms. This paper presents a structural equation model displaying the relationship between the flexibility of manufacturing system components, competitiveness of SMEs, and business performance.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:gjofsm:v:18:y:2017:i:2:d:10.1007_s40171-016-0149-x
    DOI: 10.1007/s40171-016-0149-x
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    References listed on IDEAS

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    3. V. Kolmakov & K. Ekimova & K. Ordov & A. Aliev & N. Tchuykova, 2018. "Monetary Policy Influence on Companies’ Competitiveness through Credit Channel," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 614-623.
    4. Lopes de Sousa Jabbour, Ana Beatriz & Ndubisi, Nelson Oly & Roman Pais Seles, Bruno Michel, 2020. "Sustainable development in Asian manufacturing SMEs: Progress and directions," International Journal of Production Economics, Elsevier, vol. 225(C).
    5. Somen Dey & R. R. K. Sharma & Balbir Kumar Pandey, 2019. "Relationship of Manufacturing Flexibility with Organizational Strategy," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(3), pages 237-256, September.
    6. Said Yousef Dwikat & Darwina Arshad & Mohd Noor Mohd Shariff, 2023. "Effect of Competent Human Capital, Strategic Flexibility and Turbulent Environment on Sustainable Performance of SMEs in Manufacturing Industries in Palestine," Sustainability, MDPI, vol. 15(6), pages 1-29, March.
    7. André Marie Mbakop & Joseph Voufo & Florent Biyeme & Jean Raymond Lucien Meva’a, 2022. "Moving to a Flexible Shop Floor by Analyzing the Information Flow Coming from Levels of Decision on the Shop Floor of Developing Countries Using Artificial Neural Network: Cameroon, Case Study," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(2), pages 255-270, June.
    8. Nitin S. Solke & T. P. Singh, 2018. "Analysis of Relationship Between Manufacturing Flexibility and Lean Manufacturing Using Structural Equation Modelling," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 19(2), pages 139-157, June.
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    10. 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.
    11. Sumiati & Ainur Rofiq & Sigit Pramono, 2019. "The Role of Strategic Planning and Flexibility in Shaping SMEs Market Orientation in Turbulence Business Environment," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 221-236.
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