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Specific match between specific types of strategic flexibility and sourcing strategy: another strategic approach to build competitive advantage


Abdullah, Haim Hilman and Mohamed, Zainal Abidin (2013) Specific match between specific types of strategic flexibility and sourcing strategy: another strategic approach to build competitive advantage. Journal for Global Business Advancement, 6 (2). p. 167. ISSN 1746-966X

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Abstract

Strategic flexibility, sourcing strategy and organisational performance are often a source of contention among firms in manufacturing sectors. This paper explores effects of specific types of strategic flexibility and product diversifications (related and unrelated) on strategic sourcing of make and buy. Questionnaires were sent to top management personnel of firms in four manufacturing sectors namely electrical and electronics, chemicals (including petroleum), food and beverages and fabricated metal. The results confirmed that the make or buy sourcing strategy acts as mediators and it partially does so on the relationship between related product diversification strategy and organisational performance. In addition, the buy strategy mediated partially the relationship between unrelated product diversification strategy and organisational performance. These findings go along with the theories that support both constructs, Industrial Organisation (IO) Theory, Transaction Cost Theory and Resource–Based View (RBV). All these findings should enable practitioners to make better manufacturing and sourcing decisions.

Item Type: Article
Uncontrolled Keywords: strategic flexibility, related products, product diversification, unrelated products, sourcing strategy, make or buy, organisational performance, manufacturing industry, industrial organisation theory, transaction cost theory, resource–based view, RBV
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: School of Business Management
Depositing User: Dr. Haim Hilman Abdullah
Date Deposited: 10 Nov 2016 04:51
Last Modified: 10 Nov 2016 04:51
URI: http://repo.uum.edu.my/id/eprint/19154

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