Mitigating the tension in pursuit of operational ambidexterity: The roles of knowledge development and bricolage

Abstract

Managers across the supply chain are expected to meet customers’ ever-changing needs (exploration of new opportunities) by employing innovative approaches, while operations people are inclined towards enhancing efficiency and productivity (exploitation of current practices). However, little is known about how firms manage this paradoxical tension in meeting the conflicting objectives of operations (in meeting existing demand) and supply chain management (in fulfilling future demand) through the simultaneous pursuit of explorative and exploitative activities. To address this issue, we explore the roles of the supply chain knowledge development process (SCKDP) and bricolage in mitigating the tension between exploration and exploitation. We use a survey to collect data from large-scale firms operating in north-western India to test the research model. The empirical results generally support our hypothesis that SCKDP is significantly related to bricolage. Both SCKDP and bricolage positively affect the simultaneous pursuit of explorative and exploitative operational activities, which in turn have a significant impact on supply chain performance in terms of cycle time, supply chain relationships, and financial measures.