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Employees’ skills, manufacturing flexibility and performance: a structural equation modelling applied to the automotive industry

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  • Luis Mendes
  • José Machado

Abstract

The issue of manufacturing flexibility (MF) is gaining growing importance in production/operations management, mainly due to the changing nature of competition, and in such a context, the efficient use of resources may be a major concern and challenge for manufacturing strategy in many industries, particularly in the capital intensive automotive industry. Building on the foundation laid by previous researches on flexibility concerns, the objective of this study is to gain further insights on the nature of the linkage between employees’ skills and MF, as well as its impact on business performance. Moving toward such purpose, a structural equation modelling is applied to data collected from 144 manufacturing firms in the automotive industry from several countries. Findings provide evidences that workforce’ skills may foster MF as an effective approach to cope with uncertain environments and turbulent markets. More precisely, results show that employees’ skills directly influence new product, volume and mix flexibility, which in turn directly influence business performance. Moreover, findings revealed that MF mediates partially the relationship between employees’ skills and business performance.

Suggested Citation

  • Luis Mendes & José Machado, 2015. "Employees’ skills, manufacturing flexibility and performance: a structural equation modelling applied to the automotive industry," International Journal of Production Research, Taylor & Francis Journals, vol. 53(13), pages 4087-4101, July.
  • Handle: RePEc:taf:tprsxx:v:53:y:2015:i:13:p:4087-4101
    DOI: 10.1080/00207543.2014.993772
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    Citations

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    Cited by:

    1. Marta Pérez Pérez & Ana María Serrano Bedia & María Concepción López Fernández, 2016. "A review of manufacturing flexibility: systematising the concept," International Journal of Production Research, Taylor & Francis Journals, vol. 54(10), pages 3133-3148, May.
    2. Angi Skhvediani & Anastasia Koklina & Tatiana Kudryavtseva & Diana Maksimenko, 2023. "The Impact of Intellectual Capital on the Firm Performance of Russian Manufacturing Companies," Risks, MDPI, vol. 11(4), pages 1-25, April.
    3. 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.
    4. 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.
    5. 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.
    6. Wei, Zelong & Song, Xi & Wang, Donghan, 2017. "Manufacturing flexibility, business model design, and firm performance," International Journal of Production Economics, Elsevier, vol. 193(C), pages 87-97.
    7. Johansson, Malin & Olhager, Jan, 2018. "Comparing offshoring and backshoring: The role of manufacturing site location factors and their impact on post-relocation performance," International Journal of Production Economics, Elsevier, vol. 205(C), pages 37-46.
    8. Nitin S. Solke & Pritesh Shah & Ravi Sekhar & T. P. Singh, 2022. "Machine Learning-Based Predictive Modeling and Control of Lean Manufacturing in Automotive Parts Manufacturing Industry," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(1), pages 89-112, March.
    9. Qin Chen & ShiLong Liao & ZhongZhen Wu & ShuPing Yi, 2016. "Comparative analysis of the performance of a novel U-shaped ‘chasing-overtaking’ production line," International Journal of Production Research, Taylor & Francis Journals, vol. 54(12), pages 3677-3690, June.

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