Manufacturing strategy and enterprise dynamic capability

From a system thinking perspective, competition/cooperation boundaries govern the evolution of a firmʹs adaptive strategic behaviour and drive it towards its desired objectives. By analyzing different scenarios using a system dynamic simulation approach and considering market competitive dynamics, this study explores the volume flexibility measure considering both the operating environment and the simultaneous strategic behaviour of the competing firm(s). The objective is to develop new macro measures for the enterprise manufacturing strategy and link the operations management theory on volume flexibility to the dynamic capability theory. The strategic effect of enterprise volume flexibility under three market scenarios is studied and reported.