The interaction between operational flexibility and financial flexibility

• Main Authors: BOYABATLI, Onur, LENG, Tiecheng
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2017
• Subjects: Financial Services; Financial Risk and Risk Management; Production management; Operational risk management; Contingency planning; Commodity price risk; Supply chain disruptions; Operations and Supply Chain Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5400; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6399/viewcontent/0200000077_Boyabatlı_Vol11_TOM_077.pdf
• Institution: Singapore Management University

This paper examines the interaction between operational flexibility and financial flexibility in a multi-product business unit that makes operational decisions based on financial resources provided by its parent company (or headquarters). We capture operational flexibility through investment in flex...