Ambidextrous Learning in Buyer-Supplier Relationships

Ryan Atkins,Cynthia Ruppel,Yuliya Yurova,Arvind Gudi

doi:10.4018/ijisscm.290355

Abstract

Achieving competitive advantage in a dynamic environment requires firms to exploit their current capabilities and explore new opportunities through innovation. Organizational learning theory refers to these two types of focused learning activities as exploitation and exploration, and jointly as ambidextrous learning. Suppliers can play an important role in the learning process. This research focuses on the role of strategic and operational information sharing between buyers and suppliers in promoting ambidextrous learning. Based on a survey of supply chain managers in U.S. manufacturing firms, the findings indicate that sharing operational information promotes exploitative performance, while sharing strategic information promotes exploratory performance. Both exploitative and exploratory performance improvements positively relate to the buyer’s financial performance, but these relationships are moderated by the buyer’s product innovation strategy. Exploratory performance is particularly important for firms pursuing a high innovation strategy to maximize financial performance.

Highlights

Information is necessary to reduce uncertainty, maintain efficient operations, and develop innovative new products, services, processes, and strategies (Huber, 1991; Lee et al, 1997; Li et al, 2014)
This study has demonstrated that performance along both dimensions of ambidextrous organizational learning - exploitation and exploration - can be achieved through focused information sharing between buyers and suppliers
This study has validated the value of ambidextrous learning pursuant to sharing both operational and strategic information in buyer-supplier relationships

Summary

Introduction

Information is necessary to reduce uncertainty, maintain efficient operations, and develop innovative new products, services, processes, and strategies (Huber, 1991; Lee et al, 1997; Li et al, 2014). Firms whose strategies involve complex interorganizational relationships face an even greater challenge, as pertinent information exists within the firm’s boundaries, and in external entities (Kilpi et al, 2018). The integration of this information has become more complex due to the increasing number of individuals and organizations involved in supply chains, the increasing asymmetry of information, and uncertainty as to how to structure information and relationships for future information requirements (Becker, 2001). An organization strategically, operationally, and technologically (Hult et al, 2007) – can be important sources of information as manufacturers navigate the uncertain and dynamic business environment (Andersen et al, 2020). Data and information rich organizations that effectively use information to increase organizational learning have been found to be top performers (Davenport, 2013); it is critically important for firms to leverage their supply chains for information

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