THE IMPACT OF INNOVATION FLEXIBILITY ON INNOVATION PERFORMANCE IN SMALL AND MEDIUM MANUFACTURING COMPANIES

Purpose: Flexibility is important for firms to attain and sustain a competitive advantage. However, innovation is also a crucial aspect that not only manufacturers have to manage when planning their business strategies to build a competitive advantage. This present study investigates the problems of flexibility in manufacturing companies via different points of view among electrical engineering companies in the Czech Republic. The aim of this paper is to identify the impact of innovative flexibility on innovation performance by small and medium-sized manufacturing companies. Methodology: To fulfill the research objective, a questionnaire in the form of the Likert scale was prepared to gather information. A total of 112 SMEs from the Czech Republic participated in the survey from July to October 2019. This is the first empirical research focused on this area held among electrical engineering companies in the Czech Republic. Findings: Innovative flexibility is positively associated with innovation performance in small and medium manufacturing companies. Research implications: Our study shows a great deal of interesting information related to flexibility in manufacturing companies. The findings of the research contribute to an understanding of the relationship between innovation flexibility and innovation performance. Results of the research show that there is a positive relationship between innovation flexibility in products and innovation performance and innovation flexibility in accompanying services and innovation flexibility as well. Value: This research study provides insights into the complex relationship between innovation flexibility and innovation development. There is still little information concerning understanding of flexibility in manufacturing companies.