Process ambidexterity driven by environmental uncertainty: balancing flexibility and routine
International Journal of Operations & Production Management
ISSN: 0144-3577
Article publication date: 3 April 2023
Issue publication date: 28 November 2023
Abstract
Purpose
This study aims to extend ambidexterity theory from the perspective of organisational learning and examine how process ambidexterity, which comprises operational flexibility and operational routine, responds to environmental uncertainty and ultimately reduces organisational risks.
Design/methodology/approach
This study tests the hypotheses by analysing 464 annual reports of 115 listed companies in the Chinese agricultural and food industry using content and secondary data analyses. Four case studies are also provided.
Findings
The results show that (1) environmental uncertainty has a positive effect on either operational flexibility or operational routine; (2) both operational flexibility and operational routine have negative effects on organisational risks, supporting the view that process ambidexterity mediates the relationship between environmental uncertainty and organisational risks; and (3) organisational slack plays the role of “double-edged sword” by negatively moderating the effect of environmental uncertainty on operational flexibility and positively moderating the effect of environmental uncertainty on operational routine.
Originality/value
In an uncertain environment, companies are exposed to greater risk. This study contributes to risk management in three ways: first, it extends ambidexterity theory to process management and proposes how process ambidexterity balances operational flexibility and routines. Second, it distinguishes between the different conditions under which flexibility or routines are superior. Third, it explains the mechanisms related to how organisations can resolve environmental uncertainty into risk through process ambidexterity.
Keywords
Acknowledgements
The authors would like to thank Editor-in-Chief Professor Tobias Schoenherr and two anonymous reviewers for their constructive comments and suggestions. The research underlying this paper was supported by the National Natural Science Foundation of China (No. 72072174, No. 71902205), Major Program of the National Social Science Foundation of China (No. 22&ZD096) and the Young Scientists Fund of the Ministry of Education of Humanities and Social Sciences Project in China (Grant No. 21YJC630010).
Citation
Yu, K., Cadeaux, J., Luo, B.N. and Qian, C. (2023), "Process ambidexterity driven by environmental uncertainty: balancing flexibility and routine", International Journal of Operations & Production Management, Vol. 43 No. 12, pp. 1976-2007. https://doi.org/10.1108/IJOPM-05-2022-0290
Publisher
:Emerald Publishing Limited
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