Designing an Ambidexterity Supply Chain Development Model via Structural Equation Modelling: The Case of Yazd Steel Industry
Subject Areas : Business Management
Ali Morovati Sharifabadi
1
(.Associate Professor, Department of Industrial Management, The School of Economy, Management and Accounting, Yazd University, Yazd, Iran.)
Davood Andalib Ardakani
2
(Assistant Professor, Department of Industrial Management, The School of Economy, Management and Accounting, Yazd University, Yazd, Iran)
Seyed Ali Mirnezhad
3
(Professor, Department of Industrial Management, The School of Economy, Management and Accounting, Yazd University, Yazd, Iran)
Farzad Johari Naeimi
4
(.(M.A. Graduate). Department of Industrial Management, The School of Economy, Management and Accounting, Yazd University, Yazd, Iran)
Keywords: Supply Chain, Ambidexterity, structural equation modeling,
Abstract :
Nowadays, owing to the raise in product diversity and development and intense competition among companies, manufacturing organizations should be flexible enough to manage the unpredictable threats in uncertain future and unstable environments, on the other hand, and to adequately take existing opportunities, on the other. Ambidexterity is defined as an organizational ability to align to the market and efficiently respond to market demands while maintaining the simultaneous capacity to remain adaptable to environmental changes.Moreover, it is one of the fundamental challenges for today’s managers to fit turbulent business environment Hence, this study sought to design an Ambidexterity Supply Chain Development Model in Yazd Steel Industry. Due to the growing use of Structural Equation Modeling and its hypothesis testing power, Partial Least Squares Approach was applied to test the proposed model. Four dimensions of the proposed model include "Dynamic SC Capability-Building Process", "Combinative Competitive Capabilities", "SC Ambidexterity" and "Firm Performance". The research sample (population) comprised 100 experts in Yazd Steel Industry who completed a questionnaire assessing the proposed model. The results of the statistical analyses revealed that the "dynamic SC capability-building process" was positively associated with both "SC ambidexterity" and "Combinative competitive capabilities", that the "SC ambidexterity" was positively related with both "Combinative competitive capabilities" and "firm performance", and finally that the "Combinative competitive capabilities" was positively associated with "firm performance".
Ambe, I. M.(2010). Agile Supply Chain: Strategy for Competitive Advantage. Journal of Global Strategic Management, 7(7), 5-17.
Abebe, M. A., & Angriawan, A.(2014). Organizational and Competitive Influences of Exploration and Exploitation Activities in Small Firms. Journal of Business Research, 67(3), 339-345.
Asree, S.(2016). Ambidextrous Supply chain in an Emerging Market: Impacts on Innovation and Performance. International Journal of Supply Chain and Operations Resilience, 2(1), 1-11.
Akbari, M., Ebrahimpoor Azbari, M., & Hooshmand Chaijani, M. (2016). The Impact of Entrepreneurial Orientation and Innovation Ambidexterity on Export Performance of New Products with the Moderating Effects of Innovation Intensity of Product. Innovation Management Journal, 4(4), 81-106.
Birkinshaw, J., & Gupta, K.(2013). Clarifying the Distinctive Contribution of Ambidexterity to the Field of Organization Studies.The Academy of Management Perspectives,27(4),287-98.
BoliVar-Ramos, M. T., Garcia-Morales, V. J., & Garcia-Sanchez, E. (2012). Technological Distinctive Competencies and Organizational Learning: Effects on Organizational Innovation to Improve Firm Performance. Journal of Engineering and Technology Management, 29(3), 331-357.
Blome, C., Schoenherr, T., & Kaesser, M.(2013). Ambidextrous Governance in Supply Chains: The Impact on Innovation and Cost Performance. Journal of Supply Chain Management, 49(4), 59-80.
Bandarian, R.(2014). Simultaneous Ambidexterity, Appropriate Model for Organizing Exploration and Exploitation Activities in Research and Technology Organizations. Quarterly Journal of Industrial Technology Development, 11(22), 21-32, (In Persian).
Devinney, T. M., Richard, P. J., Yip, G. S., & Johnson, G.(2005). Measuring Organizational Performance in Management Research: A Synthesis of Measurement Challenges and Approaches. Research Paper.
D'Souza, D. E., & Williams, F.P.(2000). Toward a Taxonomy of Manufacturing Flexibility Dimensions. Journal of Operations Management, 18(5), 577-593.
Davari, A., & Rezazadeh, A. (2013). Structural Equation Modeling with PLS. Tehran: Jahad University, 2, 215-224, (In Persian).
Ebrahimpour, M., Moradi, M., & Mombiniy, Y.(2015). Effect of Organizational Ambidexterity on the Manufacturing Industries Performance: Investigation the Role of Environmental Dynamics. Iranian Journal of Management Sciences, 9(36), 53-76, (In Persian).
Ebrahimpour M., Akbari M., & Jaijani M.(2015). The Effect of Innovation Ambidexterity on Export Knowledge and Performance of New Products in Export Markets. Journal of Science & Technology Parks and Incubators, 42, (In Persian).
Ghandi arani, M., & Najmi, M.(2014). Divtvany Achieved Through the Design of the Relationship between Marketing and Sales Organization. Iranian Journal of Management Sciences, 9(35), 1-24,(In Persian).
Hajipour, B., & Ghanavati, M.(2011). The Impact of Market Orientation and Organizational Culture on the Performance: Case Study of SMES. Journal of Contemporary Management,15,83-95.
Hooley, G. J., Greenley, G. E., Cadogan, J. W., & Fahy, J.(2005). The Performance Impact of Marketing Resources. Journal of Business Research, 58(1), 18-27.
Haenlein, M., & Kaplan, A. M.(2004). A Beginner's Guide to Partial Least Squares Analysis. Understanding Statistics, 3(4), 283-297.
Kristal, M. M., Huang, X., & Roth, A.V.(2010). The Effect of an Ambidextrous Supply Chain Strategy on Combinative Competitive Capabilities and Business Performance. Journal of Operations Management, 28(5), 415-429.
Lee, S. M., & Rha, J.S.(2016). Ambidextrous Supply Chain as a Dynamic Capability: Building a Resilient Supply Chain. Management Decision, 54(1), 2-23.
Lacerda, R. T. D. O., Ensslin, L., Ensslin, S. R., & Dutra, A.(2014). A Constructivist Approach to Manage Business Process as a Dynamic Capability. Knowledge and Process Management, 21(1), 54-66.
Li, D., & Liu, J.(2013). Dynamic Capabilities, Environmental Dynamism, and Competitive Advantage: Evidence from China. Journal of Business Research.
Middle East Bank Research Group, (2015). Iran Steel Industry Survey. Retrieved from: https://www.middleeastbank.ir, (In Persian).
Moradi, M., Ebrahimpour, M., & Mombiniy, Y.(2014). Explaining Organizational Ambidexterity as a New Concept in the Management of Knowledge Based Organizations. 18-27, (In Persian).
Mombiniy, Y., Moradi, M., & Ebrahimpour, M.(2016). A Comparative Study in Assessing the Role of Organizational Ambidexterity in the Performance of Manufacturing and Service Firms. Journal of Management Improvement, 9(30), 87-112, (In Persian).
Moradi, M., Ebrahimpour, M., & Mombiniy, Y.(2015). An Investigation on the Effect of top Management Teams’ Behavioral Integration and Organizational Ambidexterity on Performance. Organizational Behaviour Studies Quarterly, 4(3), 96-61, (In Persian).
Menor, L. J., & Roth, A. V.(2007). New Service Development Competence in Retail Banking: Construct Development and Measurement Validation. Journal of Operations Management, 25(4), 825-846.
Nemati, M. A., Hemmati, M., & Kholghi, I.(2013). Devising a Competitive Advantage Model for Manufacturing Firms Based on Dynamic Capabilities Theory and Strategic Agility in Line with Economic Development of the City of Semnan. Journal of Urban Economics and Management, 1(2), 75-86, (In Persian).
O’Reilly, C. A., & Tushman, M. L.(2008). Ambidexterity as a Dynamic Capability:Resolving the Innovator's Dilemma. Research in Organizational Behavior, 28,185-206.
O'Reilly, C.A., & Tushman, M.L.(2013). Organizational Ambidexterity: Past, Present, and Future. The Academy of Management Perspectives, 27(4), 324-338.
Patel, P. C., Terjesen, S., & Li, D.(2012). Enhancing Effects of Manufacturing Flexibility through Operational Absorptive Capacity and Operational Ambidexterity. Journal of Operations Management, 30(3), 201-220.
Patel, P. C., Messersmith, J. G., & Lepak, D.P.(2013). Walking the Tightrope: An Assessment of the Relationship between High-Performance Work Systems and Organizational Ambidexterity. Academy of Management Journal, 56(5), 1420-1442.
Rajabzadeh, G. A., Seyed, H. S. M., Alborzi, M., Razavi, M., & Ramezani, A.(2012). Design Business Agility Dynamic Model in Manufacturing Organization with Dynamic Systems Approach. Journal of Organizational Resources Management Research, 46-68, (In Persian).
Ramazanian, M., Mombiniy, Y., & Moradi, M.(2015). The Effects of Information Technology Based Retail Channels Integration on Retail Stores Performance: Mediating Role of Organizational Ambidexterity (Case Study: Rasht Stores). Journal of Information Technology Management, 7(4), 741-768
Razavi S., Shahriari S., & Ahmadpour Dariani M.(2016). The Effect of Organizational Ambidexterity on Strategic Entrepreneurship. Journal of Entrepreneurship Development, 8(4), 767-786.
Rosenzweig, E. D., Roth, A. V., & Dean, J.W.(2003). The Influence of an Integration Strategy on Competitive Capabilities and Business Performance: An Exploratory Study of Consumer Products Manufacturers. Journal of Operations Management, 21(4), 437-456.
Roth, A.V.(1996). Neo-Operations Strategy: Linking Capabilities-Based Competition to Technology. Handbook of Technology Management, 38, 1-38.
Roth, A. V., De Meyer, A., & Amano, A.(1989). International Manufacturing Strategies: A Comparative Analysis. In: Ferdows.
Roth, A. V., & Miller, J.G.(1988). North American Manufacturing Futures Survey Fact Book. Manufacturing Roundtable Research Report Series, Boston University.
Sakhdari, K., Ziyae, B., & Johariyan Zadeh, F.(2016). Investigating the Effecting Factors on Franchisors Ambidexterity. Journal of Entrepreneurship Development, 8(4), 631-648.
Swafford, P. M., Ghosh, S., & Murthy, N.(2008). Achieving Supply Chain Agility through IT Integration and Flexibility. International Journal of Production Economics, 116(2), 288-297.
Stevenson, M., & spring, M.(2007). Flexibility from a Supply Chain Perspective: Definition and Review. International Journal of Operations & Production Management, 27(7), 685-713.
Wei, H. L., & Wang, E. T. G.(2010). The Strategic Value of Supply Chain Visibility: Increasing the Ability to Reconfigure. European Journal of Information Systems, 19(2), 238-249.
_||_
Ambe, I. M.(2010). Agile Supply Chain: Strategy for Competitive Advantage. Journal of Global Strategic Management, 7(7), 5-17.
Abebe, M. A., & Angriawan, A.(2014). Organizational and Competitive Influences of Exploration and Exploitation Activities in Small Firms. Journal of Business Research, 67(3), 339-345.
Asree, S.(2016). Ambidextrous Supply chain in an Emerging Market: Impacts on Innovation and Performance. International Journal of Supply Chain and Operations Resilience, 2(1), 1-11.
Akbari, M., Ebrahimpoor Azbari, M., & Hooshmand Chaijani, M. (2016). The Impact of Entrepreneurial Orientation and Innovation Ambidexterity on Export Performance of New Products with the Moderating Effects of Innovation Intensity of Product. Innovation Management Journal, 4(4), 81-106.
Birkinshaw, J., & Gupta, K.(2013). Clarifying the Distinctive Contribution of Ambidexterity to the Field of Organization Studies.The Academy of Management Perspectives,27(4),287-98.
BoliVar-Ramos, M. T., Garcia-Morales, V. J., & Garcia-Sanchez, E. (2012). Technological Distinctive Competencies and Organizational Learning: Effects on Organizational Innovation to Improve Firm Performance. Journal of Engineering and Technology Management, 29(3), 331-357.
Blome, C., Schoenherr, T., & Kaesser, M.(2013). Ambidextrous Governance in Supply Chains: The Impact on Innovation and Cost Performance. Journal of Supply Chain Management, 49(4), 59-80.
Bandarian, R.(2014). Simultaneous Ambidexterity, Appropriate Model for Organizing Exploration and Exploitation Activities in Research and Technology Organizations. Quarterly Journal of Industrial Technology Development, 11(22), 21-32, (In Persian).
Devinney, T. M., Richard, P. J., Yip, G. S., & Johnson, G.(2005). Measuring Organizational Performance in Management Research: A Synthesis of Measurement Challenges and Approaches. Research Paper.
D'Souza, D. E., & Williams, F.P.(2000). Toward a Taxonomy of Manufacturing Flexibility Dimensions. Journal of Operations Management, 18(5), 577-593.
Davari, A., & Rezazadeh, A. (2013). Structural Equation Modeling with PLS. Tehran: Jahad University, 2, 215-224, (In Persian).
Ebrahimpour, M., Moradi, M., & Mombiniy, Y.(2015). Effect of Organizational Ambidexterity on the Manufacturing Industries Performance: Investigation the Role of Environmental Dynamics. Iranian Journal of Management Sciences, 9(36), 53-76, (In Persian).
Ebrahimpour M., Akbari M., & Jaijani M.(2015). The Effect of Innovation Ambidexterity on Export Knowledge and Performance of New Products in Export Markets. Journal of Science & Technology Parks and Incubators, 42, (In Persian).
Ghandi arani, M., & Najmi, M.(2014). Divtvany Achieved Through the Design of the Relationship between Marketing and Sales Organization. Iranian Journal of Management Sciences, 9(35), 1-24,(In Persian).
Hajipour, B., & Ghanavati, M.(2011). The Impact of Market Orientation and Organizational Culture on the Performance: Case Study of SMES. Journal of Contemporary Management,15,83-95.
Hooley, G. J., Greenley, G. E., Cadogan, J. W., & Fahy, J.(2005). The Performance Impact of Marketing Resources. Journal of Business Research, 58(1), 18-27.
Haenlein, M., & Kaplan, A. M.(2004). A Beginner's Guide to Partial Least Squares Analysis. Understanding Statistics, 3(4), 283-297.
Kristal, M. M., Huang, X., & Roth, A.V.(2010). The Effect of an Ambidextrous Supply Chain Strategy on Combinative Competitive Capabilities and Business Performance. Journal of Operations Management, 28(5), 415-429.
Lee, S. M., & Rha, J.S.(2016). Ambidextrous Supply Chain as a Dynamic Capability: Building a Resilient Supply Chain. Management Decision, 54(1), 2-23.
Lacerda, R. T. D. O., Ensslin, L., Ensslin, S. R., & Dutra, A.(2014). A Constructivist Approach to Manage Business Process as a Dynamic Capability. Knowledge and Process Management, 21(1), 54-66.
Li, D., & Liu, J.(2013). Dynamic Capabilities, Environmental Dynamism, and Competitive Advantage: Evidence from China. Journal of Business Research.
Middle East Bank Research Group, (2015). Iran Steel Industry Survey. Retrieved from: https://www.middleeastbank.ir, (In Persian).
Moradi, M., Ebrahimpour, M., & Mombiniy, Y.(2014). Explaining Organizational Ambidexterity as a New Concept in the Management of Knowledge Based Organizations. 18-27, (In Persian).
Mombiniy, Y., Moradi, M., & Ebrahimpour, M.(2016). A Comparative Study in Assessing the Role of Organizational Ambidexterity in the Performance of Manufacturing and Service Firms. Journal of Management Improvement, 9(30), 87-112, (In Persian).
Moradi, M., Ebrahimpour, M., & Mombiniy, Y.(2015). An Investigation on the Effect of top Management Teams’ Behavioral Integration and Organizational Ambidexterity on Performance. Organizational Behaviour Studies Quarterly, 4(3), 96-61, (In Persian).
Menor, L. J., & Roth, A. V.(2007). New Service Development Competence in Retail Banking: Construct Development and Measurement Validation. Journal of Operations Management, 25(4), 825-846.
Nemati, M. A., Hemmati, M., & Kholghi, I.(2013). Devising a Competitive Advantage Model for Manufacturing Firms Based on Dynamic Capabilities Theory and Strategic Agility in Line with Economic Development of the City of Semnan. Journal of Urban Economics and Management, 1(2), 75-86, (In Persian).
O’Reilly, C. A., & Tushman, M. L.(2008). Ambidexterity as a Dynamic Capability:Resolving the Innovator's Dilemma. Research in Organizational Behavior, 28,185-206.
O'Reilly, C.A., & Tushman, M.L.(2013). Organizational Ambidexterity: Past, Present, and Future. The Academy of Management Perspectives, 27(4), 324-338.
Patel, P. C., Terjesen, S., & Li, D.(2012). Enhancing Effects of Manufacturing Flexibility through Operational Absorptive Capacity and Operational Ambidexterity. Journal of Operations Management, 30(3), 201-220.
Patel, P. C., Messersmith, J. G., & Lepak, D.P.(2013). Walking the Tightrope: An Assessment of the Relationship between High-Performance Work Systems and Organizational Ambidexterity. Academy of Management Journal, 56(5), 1420-1442.
Rajabzadeh, G. A., Seyed, H. S. M., Alborzi, M., Razavi, M., & Ramezani, A.(2012). Design Business Agility Dynamic Model in Manufacturing Organization with Dynamic Systems Approach. Journal of Organizational Resources Management Research, 46-68, (In Persian).
Ramazanian, M., Mombiniy, Y., & Moradi, M.(2015). The Effects of Information Technology Based Retail Channels Integration on Retail Stores Performance: Mediating Role of Organizational Ambidexterity (Case Study: Rasht Stores). Journal of Information Technology Management, 7(4), 741-768
Razavi S., Shahriari S., & Ahmadpour Dariani M.(2016). The Effect of Organizational Ambidexterity on Strategic Entrepreneurship. Journal of Entrepreneurship Development, 8(4), 767-786.
Rosenzweig, E. D., Roth, A. V., & Dean, J.W.(2003). The Influence of an Integration Strategy on Competitive Capabilities and Business Performance: An Exploratory Study of Consumer Products Manufacturers. Journal of Operations Management, 21(4), 437-456.
Roth, A.V.(1996). Neo-Operations Strategy: Linking Capabilities-Based Competition to Technology. Handbook of Technology Management, 38, 1-38.
Roth, A. V., De Meyer, A., & Amano, A.(1989). International Manufacturing Strategies: A Comparative Analysis. In: Ferdows.
Roth, A. V., & Miller, J.G.(1988). North American Manufacturing Futures Survey Fact Book. Manufacturing Roundtable Research Report Series, Boston University.
Sakhdari, K., Ziyae, B., & Johariyan Zadeh, F.(2016). Investigating the Effecting Factors on Franchisors Ambidexterity. Journal of Entrepreneurship Development, 8(4), 631-648.
Swafford, P. M., Ghosh, S., & Murthy, N.(2008). Achieving Supply Chain Agility through IT Integration and Flexibility. International Journal of Production Economics, 116(2), 288-297.
Stevenson, M., & spring, M.(2007). Flexibility from a Supply Chain Perspective: Definition and Review. International Journal of Operations & Production Management, 27(7), 685-713.
Wei, H. L., & Wang, E. T. G.(2010). The Strategic Value of Supply Chain Visibility: Increasing the Ability to Reconfigure. European Journal of Information Systems, 19(2), 238-249.