What impacts do behaviour-based and buffer-based management mechanisms have on enterprise agility?

Journal article


Fayezi, Sajad, O’Loughlin, Andrew, Zutshi, Ambika, Sohal, Amrik and Das, Ajay. (2020). What impacts do behaviour-based and buffer-based management mechanisms have on enterprise agility? Journal of Manufacturing Technology Management. 31(1), pp. 169-192. https://doi.org/10.1108/JMTM-05-2018-0160
AuthorsFayezi, Sajad, O’Loughlin, Andrew, Zutshi, Ambika, Sohal, Amrik and Das, Ajay
Abstract

Purpose
The purpose of this paper is to investigate the impact of behaviour-based and buffer-based management mechanisms on enterprise agility using the lens of the agency theory.

Design/methodology/approach
This study is based on data collected from 185 manufacturing enterprises using a survey instrument. The authors employ structural equation modelling for data analysis.

Findings
The results of this study show that buffer-based mechanisms used for dealing with agency uncertainty of supplier/buyer not only have a positive impact on agility of enterprises, but are also contingent on the behavioural interventions used in the relationship with a supplier/buyer. Behaviour-based mechanisms also positively impact enterprise agility through mitigating the likelihood of supplier/buyer opportunism.

Practical implications
This study demonstrates that buffer- and behaviour-based management mechanisms can be used as complementary approaches against agency uncertainties for enhancing enterprise agility. Therefore, for enterprises to boost their agility, it is vital that their resources and capabilities are fairly distributed across entities responsible for creating buffers through functional flexibility, as well as individuals and teams dealing with stakeholder engagement, in particular, suppliers and buyers.

Originality/value
The authors use the lens of the agency theory to assimilate and model characteristic agency uncertainties and management mechanisms that enhance enterprise agility.

Keywordsagile manufacturing ; manufacturing operations; extended enterprise
Year01 Jan 2020
JournalJournal of Manufacturing Technology Management
Journal citation31 (1), pp. 169-192
PublisherEmerald Group Publishing Limited
ISSN1741-038X
Digital Object Identifier (DOI)https://doi.org/10.1108/JMTM-05-2018-0160
Web address (URL)https://www.emerald.com/insight/content/doi/10.1108/JMTM-05-2018-0160/full/html
Open accessPublished as non-open access
Research or scholarlyResearch
Page range169-192
Publisher's version
License
All rights reserved
File Access Level
Controlled
Output statusPublished
Publication dates
Online24 Jun 2019
Publication process dates
Accepted02 Apr 2019
Deposited06 Aug 2024
Additional information

Copyright © 2019, Emerald Publishing Limited

Place of publicationUnited Kingdom
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