Effects of standardization and innovation on mass customization: An empirical investigation
Mass customization (MC) refers to the capability to produce customized goods for a mass market. Innovation can enhance the flexibility and responsiveness of a company, and standardization enables the company to achieve economies of scale and scope, both of which are necessary for developing MC capability. A conceptual model is proposed to explore the relationships among innovation, standardization, MC capability, and delivery speed. Hypotheses are tested using survey data from 204 manufacturing companies in China. The results show that standardization positively influences innovation. Innovation and standardization positively affect MC capability and are complementary in developing MC capability. Innovation significantly enhances delivery speed. However, the direct effect of standardization on delivery speed is nonsignificant. In addition, innovation and standardization indirectly affect delivery speed through MC capability. This study contributes to the literature by providing empirical evidence on the individual and interactive effects of standardization and innovation in developing MC capability and their joint influence on delivery speed. The results will help managers understand the roles of standardization and innovation in improving organizational capability and performance.