The impact of ambidexterity on supply chain flexibility fit

Abstract

Purpose The purpose of this paper is to analyze whether supply chain (SC) ambidexterity improves supply chain flexibility (SCF) and its impact on SC competence and firm performance. A new measurement instrument for SCF is proposed that takes into account the demands of the environment: SCF fit. Design/methodology/approach A theoretical model is developed to examine the relationships proposed. The hypotheses are tested with data from 302 manufacturing firms using a structural equations model methodology. Findings The results show that SC ambidexterity helps to achieve the optimal level of SCF and that supply chain management (SCM) is important to firm performance. Research limitations/implications This paper makes three contributions to the SCM literature: first, it develops the conceptual definition of SC ambidexterity and studies its effects at the SC level; second, it develops a new instrument to measure SCF known as SCF fit; third, it studies both the impact of SCF fit on SC competence and the importance of SC in firm performance. Practical implications This paper develops a measurement instrument that permits managers to diagnose the level of SCF and the correspondence/gap between current and optimal levels and to establish comparisons between different SC. It also indicates the importance of SCM for firm performance and the need to consider the SC as a whole. Originality/value This is one of the first studies to analyze ambidexterity in an organizational network like the SC. It shows that exploitation practices do not jeopardize SCF as long as they are accompanied by exploration practices. That is, high levels of exploration and exploitation are compatible in the SC and lead to the optimal level of SCF.