Alternative forms of fit in distribution flexibility strategies

Abstract Purpose – In response to highly volatile and uncertain environments, many firms have implemented flexible strategies and many management researchers have discussed the topic of flexibility. The purpose of this paper is to focus on distribution flexibility, the aspect of flexibility related to a downstream supply chain and to examine the construct of distribution flexibility and how organisations make strategic choices among different distribution flexibility strategies. Design/methodology/approach – This work conducts an exploratory multiple case study which analyses four Chinese manufacturers from different industries (pharmaceutical, solid/liquid separation, electric appliances, and clothing). Findings – The results show that, given different circumstances, firms might choose an appropriate distribution flexibility strategy (one focused on either physical distribution flexibility, demand management flexibility, coordination flexibility, or on distribution flexibility co‐alignment) which fits with their distribution environment in the contingency theory sense of matching. Furthermore, for implementation, they fit a given distribution flexibility strategy to both their distribution networks and their distribution performance outcomes in the sense of gestalts or covariance. Research limitations/implications – This paper has some limitations common to all case studies, such as the limited generalisability of results (since the sample of firms is not statistically significant) and the potential subjectivity of the analysis. Originality/value – The paper contributes to the existing literature by empirically investigating the dimensions of distribution flexibility, by considering how an organisation develops a distribution flexibility strategy in order to adapt to a particular environment, and by suggesting that final performance outcomes may arise through a variety of different distribution flexibility strategies.