Is flexibility a dual mechanism? Evidence from the Hungarian food industry

Abstract

There is a body of evidence that flexibility as a mechanism can help to increase a company’s performance when an unexpected situation occurs. The food industry is considered one of the best industries and the performance of food industry undertakings accounts for 2.2% of Hungarian GDP. Food companies make up the third-largest manufacturing sector in Hungary. This study aims, therefore, to investigate the impact of operational flexibility on the performance of the Hungarian food industry by considering environmental uncertainty as a moderator. The research is cross-sectional. A customized questionnaire was used to obtain primary data. The questionnaires were distributed to a purposive group of managers, and there were 301 valid replies for statistical analysis. The findings revealed that operational flexibility has a beneficial impact on company success, while uncertainties in supply and demand do not have an effect on this link.