Latent Dimensions of Strategic Flexibility

Despite numerous scientific articles concerning strategic flexibility in various academic journals, the majority of those articles discuss the construct of strategic flexibility from theoretical perspective. Papers dealing with scale development of the construct are surprisingly rare. By applying part-machine grouping algorithm and multivariate analysis (principal component analysis, cluster analysis) on previous scientific publications that have developed measurement scales of strategic flexibility and validated the construct using confirmatory factor analysis (CFA), the following hidden dimensions of strategic flexibility can be revealed: continuous innovation, responsive value chain, supply chain relationship, and ambidexterity. A theoretical crosscheck indicates a distinct separation of these four latent dimensions into just two groups: strategic renewal and responsive supply chain, which then represent the higher-order dimensions, the building blocks of strategic flexibility. Based on the reviewed sample articles, the construct of strategic flexibility has been applicable in these four scientific disciplines (contexts of use): small-medium enterprises (SME) & human resources management (HRM), technology/engineering management, organisation & strategy, and business & marketing.