A comparative evaluation of manufacturing flexibility adoption in SMEs and large firms in India
Purpose – The purpose of this paper is to analyse and compare the status of manufacturing flexibility adoption, its barriers and adoption practices in small and medium-sized enterprises (SMEs) and large firms in India. Design/methodology/approach – Using mixed methods sequential explanatory design, this study employs survey responses from 121 firms, followed by 16 semi-structured interviews to investigate and explain the status of manufacturing flexibility adoption, barriers to adoption and practices adopted to achieve flexibility in SMEs and large firms in India. Findings – The study suggests that awareness of manufacturing flexibility concept in SMEs is considerably low and application of manufacturing flexibility is still at embryonic stage. It was found that both SMEs and large firms employ manufacturing flexibility, but they differ with respect to their emphasis on adoption practices used to achieve flexibility. SMEs emphasize entrepreneurial orientation and flexible human resource practices to achieve flexibility, whereas large firms emphasize practices such as technological capability, sourcing practices and integration practices to achieve flexibility. The study also illustrates barriers that hinder manufacturing flexibility adoption at plant level in India. Research limitations/implications – The study is cross-sectional in nature and is limited to specific regions of India. The use of subjective measures in survey questionnaire is another limitation of the study. Practical implications – Practitioners should consider combinations of adoption practices to achieve the desired level of manufacturing flexibility. It is also important to give due consideration to barriers before considering manufacturing flexibility adoption. Originality/value – The findings contribute to the manufacturing flexibility and SMEs research by providing insights into manufacturing flexibility adoption from the developing economy perspective and by widening the scope of existing research into SMEs.