Organizational and Innovative Flexibility Mechanisms and their Impact upon Organizational Effectiveness

This paper presents a lexical definition of firms' flexibility and its operationalization as used in the DISKO survey of 1900 Danish private firms. This operationalization is highlighted by data from a highly flexible firm which was visited in 1997 as part of a follow-up upon the questionnaire survey of which the firm in question was a part. The aim is to understand the flexible traits and their meaning for effectiveness. The analysis shows how the interviewees’statements give an understanding of the firm’s flexibility and its effectiveness and how their explanations draw upon elements from the operationalization as well as elements not included in the operationalization but can be seen as part of the lexical definition. The results point to the importance for effectiveness of the firm's culture based upon openness, cooperation and service mindednes in combination with a group structure which means extended cross functional information processes. These processes are supported by information and communication technology founded on a common understanding among the users building upon learning activities. From these connections stem extended relationships with customers and a rich web of processes conducive for new ideas on products and services. Details of these relationships are presented. From this analysis is also drawn a few conclusions regarding the problem of operationalization of flexibility. Results from the questionnaire survey are given as background information and include the distribution of the 1900 firms as measured by a flexibility index and divided according to a typology of static, flexible, innovative and dynamic firms.