Analysis of the literature review provided that “there is a positive relation between a superior performance in flexibility capabilities and firm performance, although flexibility dimensions are not equally important for firm performance. On the other hand, the results show that companies enhance more the basic flexibility capabilities (at the shop floor level) than aggregate flexibility capabilities (at the customer-supplier level). However, aggregate flexibility capabilities are more positively related to firm performance than basic flexibility capabilities.” (Sánchez, & Pérez, 2005)
This was revealed through the analysis of the automobile companies which depicted that flexibility and the environmental uncertainties that are present in the automobile industry can help the supply chain dynamics of the automobile industries. The flexible structure of the Toyota Production System allows the automobile companies to adjust the operations in their supply chain to the changing conditions of their external environments.
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