Towards a Dynamic Model of Organisational Flexibility

Organisational flexibility, as the ability to adapt quickly to new or changing environments, has received growing attention from both researchers and managers as a key driver for companies to survive and prosper in turbulent and unpredictable environments. Although many scholars have studied the complex nature and multidimensional structure of this construct, research on a comprehensive model, which explains the relationships between its key variables and consequent side effects of such iterations, remains a challenge. We explore these interactions and the dynamic adaptation processes applying system dynamics modelling to develop a more robust organisational flexibility theory. The objective of this paper is twofold, to provide dynamic propositions related to several strategies along different enterprise lifecycle stages and to complement the transition guidelines proposed by the organizational flexibility framework. The results suggest that decision concerning flexible capabilities management and organizational responsiveness can be improved if organizational flexibility is analysed and evaluated incorporating the time-varying dimension. The analysis help to test and expand current theory, envisage new theoretical propositions and provide new alternatives for empirical results about the complex construct of organizational flexibility.