EXPLORING THE INFLUENCING FACTORS OF ORGANIZATIONAL FLEXIBILITY ON INNOVATION PERFORMANCE OF MANUFACTURING FIRMS: BASED ON THE MEDIATING ROLE OF FIRM DYNAMIC CAPABILITY
DOI:
https://doi.org/10.18623/rvd.v23.5933Keywords:
Organizational Flexibility, Dynamic Capability, Enterprise Innovation Performance, Employee knowledge Structure, Environmental DynamicsAbstract
Manufacturing firms face volatile markets, necessitating adaptive strategies for competitive innovation. This study explores how organizational flexibility, dynamic capability, environmental dynamics, and employee knowledge structure influence enterprise innovation performance. Employing a mixed-methods approach, quantitative data from 280 manufacturing managers in Guangdong, China, were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Qualitative insights were derived from in-depth interviews with 14 industry experts, analyzed via NVIVO 14. Results show organizational flexibility significantly boosts dynamic capability (β=0.504, p=0.000*) and innovation performance (β=0.351, p=0.005). Dynamic capability strongly predicts innovation (β=0.588, p=0.012) and mediates the flexibility-innovation link (indirect effect=0.544, p=0.002). Environmental dynamics negatively moderate the capability-innovation relationship (β=-0.054, p=0.020), while employee knowledge structure negatively moderates the flexibility-capability link (β=-0.077, p=0.029). Qualitative findings corroborate these relationships, highlighting how technological, structural, and cultural flexibilities foster dynamic capabilities crucial for adaptive innovation. The study confirms that organizational flexibility drives innovation directly and, more substantially, indirectly through dynamic capabilities. Environmental and knowledge factors further shape these interactions. A holistic framework integrating agile design, robust dynamic capabilities, and effective knowledge management is vital for sustained manufacturing innovation. This research offers theoretical contributions and practical guidance for fostering adaptive, innovation-centric cultures.
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