Developing manufacturing agility in SMEs

The problem of manufacturing in the late twentieth century can be seen as t he latest version of two long-standing puzzles to do with responding to dem anding internal and external environments. The continuing search for soluti ons to these puzzles leads to investment in innovation - via R&D, technolog y transfer, etc. But evidence suggests that the key requirement is not solv ing the puzzle for one set of circumstances but in continually solving prob lems as the puzzles mutate. This places emphasis on organizational capability - it is not what you know or what you can buy but how well you learn and adapt which is the key. We term this 'manufacturing agility' - and this paper explores the definition in terms of the 'dynamic capability' view of strategic management. This paper draws on case study research being carried out as part of a majo r UK program of work in manufacturing agility. The paper presents a referen ce model which seeks to explain and guide the development of agility within manufacturing enterprises.