Flexibility management in the changing competitive environment

Abstract

The ability to anticipate and respond to opportunities or pressure for changes, both internally and externally, is important to ensure competitiveness and sustainability of an organization. Flexibility management (termed as 'manufacturing flexibility in manufacturing research) is emerging as a key competitive strategy in response to the constantly changing competitive environment. Authors have attempted to relate the value of flexibility to crisis management, real option approach and human resource management in construction business. It appears, however, flexibility management is widely recognized as a multi-dimensional concept that is not being well-understood. The objectives of this paper are to: (1) review the fundamental principles of flexibility management; (2) consider its application in the construction industry; and (3) develop a conceptual model for delivering flexibility in the construction industry. The review shows that the major variables of manufacturing flexibility include business strategy, organizational attribute, supply chain relationship and technology. This research project is based on the premise that flexibility concept is applicable to the construction industry given that these key variables are comparable to those forming the competitive environment of the construction industry.