The flexibility in an organization is the outcome of an interaction between the controllability or responsiveness (Volberda, 1997) of the organization and the dynamic control capacity of management. This interaction should be made in a way that there remains a balance between the two.
Small firms are more flexible in their initial stage to attract new customers in the market and when they go up to intermediate stage the flexibility level decreases (Grau and Aranda, 2006). This is because of the difficulty to make a balance between attracting new customers and providing services required by them. This problem can be handled by way of making a balance between change and continuity.
Eppink (1978) has defined the relationship between environmental
Organizations having more flexibility serve their customer in a much better way than others. Flexibility is also considered as the vital force of strategy development process in the uncertain environment. According to Bishwas and Sushil (2013), innovation and flexibility are among the processes that play a critical role in long-term survival and growth. Innovation and flexibility are defined as the two key processes for long-term survival and organizational success (Liao et al., 2008) and an integrated thinking of these two processes help organization in managing the environmental changes.
Hitt et al. (1998) explained that organizations having strategic flexibility have more chances to survive as compare to others. Top management plays a leadership role in any organization. Strategic flexibility can be defined as the capability of manager deployed to face the environmental uncertainty in terms of realizing the consequences and responding in a quick manner (Volberda, 1996). Variety and speed has been defined as the two aspects of managerial capabilities that lead to strategic
According to Birch and Sadati (2004) organizations having high vital state works as a social entrepreneur and make people aware about what they usually do. According to Isaac et al. (2009), trust between the members and entrepreneur, and decision-making in a participative way contributes towards a healthy organization culture. McConaughy et al. (2001) have suggested that entrepreneurial management process is more efficient as compared to the professional management process for organizational