Ambidextrous supply chain as a dynamic capability: building a resilient supply chain

Abstract

Purpose

Developing ambidexterity as a dynamic capability is important for firms to sustain their competitive advantage. Moreover, this capability allows firms to build the resiliency to mitigate enterprise risks. The purpose of this paper is to apply two main theoretical frames from the strategy literature, dynamic capabilities, and organizational ambidexterity, to supply chain management (SCM) to examine mitigation strategies for supply chain (SC) disruptions. The authors empirically investigated how the firm’s SC ambidexterity is developed through a dynamic capability-building process and how this, in turn, can mitigate the negative impact of SC disruptions and improve business performance.

Design/methodology/approach

This study conducted a field survey to answer the research questions as there exists no archival database with detailed information on ambidextrous SC strategies and dynamic capability. A total of 316 usable responses were received from managers working in the SC area. Confirmatory factor analysis and structural equation modeling were run on SPSS (version 16.0) and AMOS (version 18.0) to test the hypotheses to answer research questions.

Findings

Overall, the results of the study confirmed that a dynamic SC capability-building process is an antecedent of SC ambidexterity, and that SC ambidexterity is important to firms as it mitigate the negative impact of SC disruptions and enhance business performance. To take advantage of an ambidextrous SC, through minimizing the negative impact of SC disruptions and maximizing firm performance, firms should continually search for creative ways to satisfy new market needs and adapt to the fast changing business environment.

Originality/value

This study applied a dynamic capability-building process and ambidexterity to SCM. From the resilient SC perspective, the study found that the ability to effectively utilize existing resources and create novel strategies for problem solving plays a critical role in addressing SC disruptions.

Citation

Lee, S.M. and Rha, J.S. (2016), "Ambidextrous supply chain as a dynamic capability: building a resilient supply chain", Management Decision, Vol. 54 No. 1, pp. 2-23. https://doi.org/10.1108/MD-12-2014-0674