Although externally-driven flexibilities, i.e., volume, variety, and physical distribution flexibility, are considered to be key competitive tools, little research exists on how each of these flexibilities may be improved in the demand chain. Similarly, only few studies have examined the outcomes of externally-driven flexibilities in the demand chain.;Accordingly, the purposes of this paper are to study the antecedents and outcomes of externally-driven flexibilities. Specifically, this study explores the relationships between (i) web-based DCM integration, volume, variety, and physical distribution flexibilities, and (ii) volume, variety, physical distribution flexibilities, and perceived customer value.;These research objectives are examined in a Business-to-Business (B2B) context. Survey responses from 330 senior-level managers representing various manufacturing industries in India, are analyzed with Structural Equation Modeling (SEM) statistical technique.;The findings indicate that web-based DCM integration is positively related to volume, variety, and physical distribution flexibilities. Results also show strong, positive relationships between volume, variety, and physical distribution flexibilities, and perceived customer value. These findings have key implications for manufacturing research and practice. |