Chapter 24 - Reconceptualizing supply chain strategy for the digital era: achieving digital ambidexterity through dynamic capabilities

Abstract

The concept of the digital supply chain (DSC) has gained prominence across industry, business, and commerce, as it opens up new business opportunities and new business models and has the potential to revolutionize supply chain performance. Accordingly, supply chain managers are viewing the DSC as a critical source of value creation and competitive advantage. Yet, many firms are still in the early stages of adoption and there is a lack of understanding of how the DSC can develop supply chain capabilities or improve supply chain performance. The DSC concept has not yet been appropriately theoretically grounded. Drawing on dynamic capabilities and ambidexterity, we present a set of six propositions showing how digital ambidexterity can be achieved to generate high levels of supply chain performance. We introduce a conceptual framework that underlines the importance of dynamic supply chain capabilities, including visibility, agility, and flexibility, in the design of the DSC-building process. We highlight the need to possess these capabilities to create ambidextrous supply chain capabilities. The conceptual framework explains how digital technologies support and interact to enable digital ambidexterity. This chapter sets the stage for an ambitious research agenda focused on Digital Supply Chain Strategy to achieve sustainable performance gains.