Abstract
This study found evidence that operating strategies of efficiency and flexibility are related to product offering in small firms and that these firms have difficulties pursuing both strategies. In a sample of 200 small manufacturing firms, significant differences were found in measures of operational performance between firms providing only standard products and firms providing only made-to-order products, and these differences coincided with efficiency and flexibility in operations. Additionally, firms providing both standard and made-toorder products had significantly lower operational performance on nearly all measures than other firms. These results indicate that small firms should focus on either standard or made-to-order product offerings, as these allow for consistency in organizational development.