The paper analyzes the impact of macro environment
on the relationship between HR
improvement efforts in manufacturing and the result
ing manufacturing system flexibility. Our
findings underline the importance of contingencies.
Although HR improvement programs are
used at similar levels in more and less developed c
ountries, manufacturing system flexibility
improves more in less developed countries. Furtherm
ore, while delegation and knowledge,
and continuous improvement have the largest impact
on manufacturing system flexibility
improvement in less developed macro environment, wo
rk force flexibility proved to be the
most important in more developed countries.