| One of the first steps in understanding and improving a manufacturing capability such as flexibility is the ability to measure it. Yet, there is a lack of good, generalizable measures for it (e.g., De Toni and Tonchia 1998, Gerwin 1993, Sethi and Sethi 1990). The current study examined the theoretical underpinnings of this concept, and then used this theory to create generalizable measurement scales for flexibility. Scale development efforts were focused on six flexibility dimensions that are relevant to manufacturing organizations: machine, labor, material handling, mix, new product, and modification. Each of these dimensions, in turn, is composed of four elements: range-number, range-heterogeneity, mobility, and uniformity. Thus a total of 24 constructs (6 dimensions x 4 elements) were defined and empirically measured.;We followed Churchill's (1979) paradigm for scale development. In conjunction with extant literature, interviews with plant managers were used to generate, test, and purify scale items for each of the constructs included in this study. Mail surveys were used to collect data from 158 organizations representing 3 major SIC industry groups.;After establishing the measurement properties of the scales with Exploratory Factor Analysis and Confirmatory Factor Analysis, the scales were used to examine the relationships among elements of each flexibility dimension. The consistency of these relationships with prior literature and research expectations provided internal validity for the new measurement scales. The four elements can be categorized by two underlying factors representing benefits of flexibility (range-number and heterogeneity), and costs of invoking a flexible response (mobility and uniformity). Cluster analysis was subsequently performed based on these two factors. Evidence is shown to support the theory that tradeoffs exist within and between flexibility costs and benefits for several manufacturing organizations. This result has important implications for how manufacturing organizations, and the supply chains within which they exist, are managed.;This study provided insights into how different elements of flexibility relate to one another and how they contribute differently to firm performance. In addition, the development of valid, reliable, and generalizable measures of manufacturing flexibility provide a much-needed tool for the advancement of this research field into the theory testing stage. |
