Manufacturing firms in general create and execute manufacturing strategies based on the extent to which their environment is uncertain. Being flexible is a part of manufacturing strategy to improve their performance in such situations. This study examines how the manufacturing industry has confronted an increasingly volatile environment encompassing unforeseen disruptions that can severely impact operational continuity and competitiveness. A systematic literature review was conducted and ended up with 99 studies, which were selected from 562 studies for the purpose of identifying key themes and providing insights into the manufacturing industries. It is observed that organisations seeking to maintain a competitive advantage develop capabilities that not only enable them to recover from challenges created by their stakeholders and communities but also to adapt and thrive in a constantly changing environment. A crucial element for achieving this resiliency is the development of dynamic capabilities, which allow companies to anticipate and proactively respond to environmental changes. The ability to detect and swiftly react to signals is essential for ensuring long-term sustainability. It is found that dynamic capabilities become more effective when they are combined with strategies supporting digitalisation and automation. This study reveals that digitalisation and automation are the key components in the modernisation of industrial operations. These technologies optimize operational efficiency and also enhance an organisation’s ability to withstand disruptions, such as those caused by the COVID-19 pandemic. The adoption of digital tools improves flexibility, effectiveness, and adaptability in manufacturing processes that lead to strengthening organisational resilience. This literature review highlights that a resilience-oriented design approach from the early stages of the manufacturing process facilitates the creation of operational configurations that can swiftly adjust to unforeseen changes. This proactive approach not only ensures business continuity but also fosters innovation, driving companies to explore new opportunities and maintain competitiveness in a highly dynamic global market.