Supply chain ambidexterity and performance under uncertainty: The case of inter-island logistics in Indonesia

Abstract

This study investigated the impact of supply chain ambidexterity on supply chain performance (SCP) under uncertainties. The dynamic capability theory of firms was adopted in the supply chain to design a research framework that recommends a supply chain strategy under uncertainties pertaining to inter-island logistics in Indonesia. This study involved the survey of 140 large-scale companies delivering products across the Indonesian islands to identify the supply chain uncertainties by analyzing data using SmartPLS. The supply chain ambidexterity (SAM) was identified to exhibit no direct correlation with SCP; however, agile supply chain (ASC) and lean supply chain (LSC) could indirectly relate the SAM and SCP. For supply chain professionals, the results indicated that SCP cannot be achieved solely through SAM, thereby necessitating the development of LSCs and/or ASCs, driven from SAM, to achieve SCP. Thus, this study empirically confirmed ASC and LSC to be effective practices for mitigating supply chain uncertainties by mediating supply chain ambidexterity on SCP.