Designing an Ambidexterity Supply Chain Development Model via Structural Equation Modelling: The Case of Yazd Steel Industry

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".

Keywords

• supply chain
• ambidexterity
• structural equation modeling