Strategic flexibility is the organization's. capability to identify major changes in the external environment, quickly commit. resources to new courses of action in response to those changes, and recognize and act. promptly when it is time to halt or reverse existing resource commitments.

1. Group-2
• Abhishek Chaudhary
• Deepali Singh Parmar
• Ishanee Bajpai
• Mayanka Mishra
• Nishant Kr. Bhatnagar
• Vikram Malik
Strategic Flexibility : A Literature Review

2. • Strategic Flexibility
• Reason for paper study
• Scope and coverage of the
literature review
• Analytical Model
• Discussion
• Conclusion

3. Strategic Flexibility

4. 4
Strategic Flexibility
Strategy
A method or plan chosen to bring about a
desired future, such as achievement of a goal
or a solution to the problem
Outline of Strategic Flexibility
A strategic flexibility is related not only to a firm’s reaction to changes
in the business environment, but also its ability to model, shape and
transform its environment :
• Note:
• Strategic flexibility helps firm surmount economic and political
crisis
• Strategic flexibility reflects how the firm positions itself with
respect to a menu of choices for future.
• Strategic flexibility is a firms reaction to changes in business
environment and its ability to model, shape and transform its
environment
• Early conceptualization - Responsive ability of the firm and
alternative course of action that can be applied for particular
situation
• Best contributions according to year of publication for strategic
flexibility is shown as per the graph.

5. 5
Strategic Flexibility
Shortcomings
• Lack a specific focus in the field
• Provide excessive definitional focus
• Lack of clear empirical overview of
research in the field
Reason for paper study
It helps in analysing various aspects & understanding of
strategic flexibility, and contributes to the field by providing a
consolidation of the literature and helps in indicating future
research avenues.

6. 6
a) Identification of relevant literature
(it’s a difficult & complex topic)
Identification of literature review & Analytical Model
Many articles that mentioned
strategic flexibility do not deal with it
specifically. it had to be recognized
that some articles may have dealt
with issues regarding strategic
flexibility, but different terminologies
were used(eg. dynamic capabilities,
agility, adaptability)
b) Development of the analytical model
It provided the basis for a well-founded
overview and critique of the identified
contributions. During review, the need
arose to expand the analytical model &
distinguish between the nature of
changes in the business environment
and the nature of the internal enabling
base to exercise strategic flexibility

7. Base Analytical Model of Strategic Flexibility
Triggers of
strategic
flexibilityMeta Review Identified 4 main Elements
1. Dimensions
2. Antecedents
3. Process
4. Outcomes
Further extended to include 3 more
1. Triggers
2. Enablers
3. Barriers
Reasons
1. Different nature of triggers
2. Frequency of enabler which trigger change
3. Inadequate discussion about barriers
4. Need to illuminate counter balance of
enablers & barriers as driving
Dimensions
of strategic
flexibility
Process of
performing
strategic
flexibility
Outcome of
strategic
flexibility

8. Extended Analytical Model of Strategic Flexibility
Triggers of
strategic
flexibilityEnablers of
strategic
flexibility
Barriers of
strategic
flexibility
Dimensions
of strategic
flexibility
Process of
performing
strategic
flexibility
Outcome of
strategic
flexibility

9. 9
a) Dimensions of Strategic Flexibility
Dimensions and Triggers of Strategic Flexibility
The dimensions of ‘response’, ’a
timely manner’ an appropriate
manner and firms reaction to
changes in the business
environment, but also its ability
to model , shape and transform
its environment
b) Triggers of strategic flexibility
Sources of the uncertainties that can triggers
strategic flexibility may vary:
• Competition or Supplier related
• Unpredictable demand fluctuations
& advances in technology
• Economic & political crisis
• Rising Complexity in modern
markets

10. 1
0
c) Enablers of strategic flexibility
Enablers of strategic flexibility
d) Enablers
Enablers have been grouped under
three categories
• strategy
• orientation & culture
• resource-related enablers
Older literature
emphasized on
New enablers
emphasized on
strategic variety organizational
knowledge
slack resources or
technology
flexibility of business
models
1.Strategies are assumed to be
accompanied by structures and
processes designed to facilitate
implementation
2.Analysis of Data within product and
market boundaries to the contextual
knowledge.
3.Organizational culture & orientation
of firms formalized factors.

11. 1
1
e) Barriers to strategic flexibility
Barriers and scope of strategic flexibility
• Rigidity.
• Over-flexibility – it can cause
the firm to lose its focus (can
damage the firm as acutely as
a rigidity).
• The negative influence of poor
management practices.
• Lack of financial resources.
f) The process of strategic flexibility
(tactical flexibility)
A firm initially focuses on identifying
and evaluating specific traits of
environmental change and secures
adequate resources. The firm then
chooses and implements the most
appropriate option

12. 1
2
g) Outcomes of strategic flexibility
Outcome of Analytical Model
• Financial performance.
• Competitive advantage.
• Reduces risk & Uncertainty.
• Exploration and Realization of
new Markets.
Negative outcomes
• Over-flexibility.
• High Costs.
• Disagreement - whether strategic
flexibility is actually suitable for
small firms
Positive outcomes

13. 1
3
Measurement followed Strategic Flexibility
h) Measuring strategic flexibility
There are no absolute measures of strategic flexibility
Flexibility audit by Aaker
and Mascarenhas (1984)
Harrigan’s (1985) proxies
of manufacturing,
financial, marketing and
knowledge flexibilities
Sanchez’s (1995)
resource and
coordination flexibility
variables
Volberda’s (1996, 1998)
dimensions of strategic flexibility
The four-item measure by Grewal and
Tansuhaj (2001)

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4
Strategic Flexibility
Discussion
• Different nature of changes firms can act differently in
relation to changes
• Changes characterized as opportunities cause firm to act
more proactively and offensively.
• The analytical model implies complex relationships
between different aspects of strategic flexibility
• Existence of various combinations of relationships between
o Triggers,
o Dimensions
o Enablers
o Barriers
o Processes
o Outcomes
The findings and challenges of the research highlight

15. 1
5
Strategic Flexibility
Re-framed analytical model of Strategic Flexibility

16. 1
6
Strategic Flexibility
Direction for future research
o Understanding how and why some negative
outcomes appear are also advisable
• Other possible research avenues include
o influence of various nature of changes
o the proactive view on strategic flexibility
o enabling and disabling capacities of IT
o new technologies
Transforming the analytical model used for the review (Figure 1) into a model for Potential future research
(Figure 2), the discussion reveals complex sets of connections and links between the aspects of strategic
flexibility, which were, previously, seldom discussed.
• Barriers to strategic flexibility: Is a largely unexplored area

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7
Strategic Flexibility
Conclusion
• Highlighted a number of actual sources of changes in the environment (like competition ,uncertainty or
complexity )and the varying nature of these changes (expected or unexpected changes ,continuous changes
or any disturbance).
• Different firms act differently when faced with the similar changes
• It shows the progress of the conceptualization of strategic flexibility & recognizes the broadness of the
mechanisms of strategic flexibility.
With regard to the barriers to strategic flexibility,
• The review indicates that this aspect is relatively under-research area as compared to other important areas
in strategic flexibility.