A Conceptual Framework for Manufacturing Flexibility and New Product Performance: The Strategic Role of Sustainable Competitive Advantage

This conceptual paper proposes a framework that investigates the role of manufacturing flexibility (MF) in enhancing new product performance (NPP), with sustainable competitive advantage (SCA) as a mediating factor, within Malaysia’s Electrical and Electronics (E&E) industry. Drawing on the Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT), the framework highlights five core MF dimensions lkke labour, machine, operational, new product, and material handling flexibility which has been critical enablers for adapting to technological change, market uncertainty, and sustainability demands. The paper posits that MF enhances NPP by enabling faster product launches, customization, and efficient resource utilization, while SCA reinforces this link by supporting differentiation, innovation, and long-term competitiveness. This model addresses key gaps in existing literature by contextualizing MF within a high-mix, low-volume manufacturing environment typical of Malaysia’s E&E sector. The study contributes theoretically by integrating strategic and operational perspectives of MF and offers practical insights for managers aiming to build resilient, innovation-driven operations. The proposed framework also aligns with Malaysia’s MADANI strategy and the United Nations Sustainable Development Goals (SDGs 9 and 17). Future empirical studies are encouraged to validate and extend the framework across diverse industrial contexts