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The recently developed resource orchestration theory studies the processes by which managers handle resources to create competitive advantages. According to this theory, it is the way that resources interact with each other that results in such advantages. Resource integration, i.e. the alignment, or fit between resources, is one important outcome of resource orchestration processes. This paper aims to develop a scale and outline approaches to measuring such resource integration.

Using a typology of five types of resources derived from value theory, the authors develop a scale for measuring the fit between resource types, i.e. the degree of resource integration. The authors illustrate the method using a case example of an IT company and demonstrate how a variety of statistical methods including hierarchical cluster analysis, structural equation modeling, social network analysis and methods from biostatistics can provide measures of resource integration.

The authors develop a scale and associated measures that can help scholars systematically measure and identify firms with a high or low level of resource integration capability. This makes it possible to investigate further these companies and reconstruct how they support dynamic capabilities, as well as commonalities across firms with high and low levels of this capability.

Existing studies on resource orchestration have failed to provide us with a reliable measurement instrument that can be used both in cross-sectional work, and in repeated or time-series studies, allowing us to assess the degree to which a wider range of resources in an organization are integrated. The authors develop and demonstrate such an instrument.

The purpose of this paper is to understand how small and medium enterprises (SMEs) cope with the need for labour flexibility. Most previous studies ignore the labour flexibility practices of SMEs, especially in times of economic growth and tight labour markets.

A multiple case study approach is applied, with ten Dutch SMEs located in one small province with a similar labour market. A survey was executed as an intake, followed by 48 interviews with the entrepreneurs, HR and other managers and employees, and two focus groups in each company. The findings are based on an analysis of the approved case descriptions.

SMEs, like big companies, do not rely on one flexibility practice. Volume fluctuations are countered with all flexibility strategies, the mix fluctuations and the product innovations are mostly countered with flexible functions and flexible production technology. In general, the data suggest that flexibility strategies of SMEs can be characterised as ad hoc, reactive and with a short-term orientation.

Future research should include other sectors and regions enabling to generalise the findings. Future research should have a longitudinal design to include the pathway dependencies of flexibility practices.

This study identifies the need to analyse flexibility demands; reduce flexibility demands before investments in flexibility practices; create production process flexibility; invest in labour flexibility practices only after the first three steps are taken; and develop basic and more advanced levels of flexible contracts, flexible functions and flexible working times.

This study contributes to the authors’ knowledge on the use of labour flexibility practices in SMEs. In addition, it brings empirical data on how these labour flexibility practices relate to the needs for flexibility and how they relate to other sources of organisational flexibility, such as a flexible market approach and flexible production technologies. Dynamic capabilities should include the suggested operationalisation of the flexibility practices.