The role of supply management resilience in attaining ambidexterity: a dynamic capabilities approach

Purpose – This study aims to explore the necessary role of supply management (SM) resilience capabilities in making effective trade-offs to attain an ambidextrous state, i.e. the state of attaining exploitation and exploration with dexterity, or achieving high levels of both. Sustainability requires effective trade-offs among economic, environmental and social outcomes while maintaining the longevity of the buying firm. Existing literature highlights the difficulty of making effective trade-offs due to likely tensions between divergent demands, i.e. tensions between exploitative and explorative performance goals. Design/methodology/approach – This conceptual study extends insights from the dynamic capabilities approach to explore the nature of SM resilience and its role in attaining ambidexterity. Findings – This study proposes SM resilience as a multifaceted dynamic capability that is determined by two contrasting aspects of stability (engineering and ecological resilience) that aid the buyer’s firm to ambidextrously adapt and transform in turbulent environments. Practical implications – The study highlights the competencies and resilience capabilities that managers need to develop and maintain in pursuing an effective balance of exploitation and exploration in SM. Originality/value – The proposed framework extends existing SM sustainability frameworks by examining the nature and dimensionality of resilience and linking it to ambidexterity. The proposed framework provides a platform for the integration of theoretical aspects from various research streams; socio-ecological literature, dynamic capabilities and organizational ambidexterity.