The effect of country level factors on the trade-off between cost and flexibility in mass customization

Insufficient attention has been paid to both the relationship between mass customization capability and operational performance and the contingency factors affecting this relationship. We propose a model that conceptualizes the relationship between mass customization capability, flexibility performance, and cost performance. The hypotheses are empirically tested using data collected from 5th round of GMRG and secondary data obtained from World Bank and UNIDO. The results show that mass customization capability positively impacts both flexibility performance and cost performance. In addition, national logistics performance and a country's risk level impact the relationship between mass customization capability and cost performance in different ways.