| New product development has been considered a key success factor for today's businesses. Long term survival of many manufacturing organizations depends on how successful organizations are introducing new products to compete in existing markets or in creating new markets. Despite the importance of new product development, many manufacturing organizations face a limited understanding of the relationship between manufacturing capabilities and new product success. This study examined the relationship between manufacturing flexibility and new product performance.;Eight dimensions of manufacturing flexibility and three measures of new product performance were identified and the relationships among these variables were examined. Impact of new product type, value creation mode, and manufacturing system on the relationships was also assessed. A survey of the U.S. electronic manufacturing industry was conducted. Data obtained was statistically analyzed to provide valid and reliable measures for research variables and to test the hypothesized relationships.;This study supports the multidimensionality of flexibility and the existence of a hierarchy among flexibility dimensions. A suggested hierarchy of manufacturing flexibility is offered. Manufacturing flexibility was found to be more positively correlated with market success than with quality, cost or delivery. The difference between quality and cost and delivery was found to be insignificant.;For more radical products, manufacturing flexibility was found to be more positively correlated with product performance. Another fording suggested that manufacturing flexibility is more positively correlated with product performance in a product focused environment than in a process focused or market focused environment. Manufacturing flexibility was found to be more positively correlated with product performance in a market focused than in a process focused environment. Another result suggested that the level of positive correlation between manufacturing flexibility and new product performance is higher in a Line Flow manufacturing system and in a Flexible Manufacturing System (FMS) than in any other manufacturing system. |
