What is flexible firm?

A flexible firm is an organizational model that emphasizes adaptability and responsiveness to changing market conditions and workforce needs. This approach often involves a mix of core and peripheral employees, where core staff are permanent and highly skilled, while peripheral workers are hired on a temporary or part-time basis to meet fluctuating demands. This structure allows firms to optimize resources, enhance productivity, and maintain competitiveness in a dynamic environment. Ultimately, the flexible firm seeks to balance stability with the ability to pivot quickly when necessary.