To read the full version of this content please select one of the options below:

What impacts do behaviour-based and buffer-based management mechanisms have on enterprise agility?

Sajad Fayezi (Faculty of Business and Economics, Monash University, Clayton, Australia) (La Trobe Business School, La Trobe University, Melbourne, Australia)
Andrew O’Loughlin (Australian Technical and Management College, Melbourne, Australia)
Ambika Zutshi (Department of Management, Faculty of Business and Law, Deakin University, Burwood, Australia)
Amrik Sohal (Department of Management, Faculty of Business and Economics, Monash University, Clayton, Australia)
Ajay Das (Baruch College Zicklin School of Business, New York, New York, USA)

Journal of Manufacturing Technology Management

ISSN: 1741-038X

Article publication date: 24 June 2019

Issue publication date: 23 January 2020

Abstract

Purpose

The purpose of this paper is to investigate the impact of behaviour-based and buffer-based management mechanisms on enterprise agility using the lens of the agency theory.

Design/methodology/approach

This study is based on data collected from 185 manufacturing enterprises using a survey instrument. The authors employ structural equation modelling for data analysis.

Findings

The results of this study show that buffer-based mechanisms used for dealing with agency uncertainty of supplier/buyer not only have a positive impact on agility of enterprises, but are also contingent on the behavioural interventions used in the relationship with a supplier/buyer. Behaviour-based mechanisms also positively impact enterprise agility through mitigating the likelihood of supplier/buyer opportunism.

Practical implications

This study demonstrates that buffer- and behaviour-based management mechanisms can be used as complementary approaches against agency uncertainties for enhancing enterprise agility. Therefore, for enterprises to boost their agility, it is vital that their resources and capabilities are fairly distributed across entities responsible for creating buffers through functional flexibility, as well as individuals and teams dealing with stakeholder engagement, in particular, suppliers and buyers.

Originality/value

The authors use the lens of the agency theory to assimilate and model characteristic agency uncertainties and management mechanisms that enhance enterprise agility.

Keywords

Citation

Fayezi, S., O’Loughlin, A., Zutshi, A., Sohal, A. and Das, A. (2020), "What impacts do behaviour-based and buffer-based management mechanisms have on enterprise agility?", Journal of Manufacturing Technology Management, Vol. 31 No. 1, pp. 169-192. https://doi.org/10.1108/JMTM-05-2018-0160

Publisher

:

Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited