The Relationship Between of Manufacturing Flexibility, Innovation Capability, and Operational Performance in Indonesian Manufacturing SMEs

This study examined the relationship between manufacturing flexibility competence and operational performance with technological innovation capability as mediator variables. A survey method was applied to collect data pertaining to the variables being investigated. The findings indicated that manufacturing flexibility competence is positively associated with technological innovation capability and operational performance. The findings also suggested that technological innovation capability types mediated positively to the operational performance implication of manufacturing flexibility competence. This implies that manufacturing organizations pursuing manufacturing flexibility competence need to develop technological innovation capability in obtaining a high operational performance.