Operationalising Ambidexterity through Better Management Practices: The Case of High-Variety, Low-Volume Manufacturing
- Publication Type:
- Thesis
- Issue Date:
- 2020
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Despite increased research interest concerning organisational ambidexterity - the ability to increase operational efficiency and simultaneously leverage assets for change and innovation – the question of how this is actually operationalised in organisations remains elusive. This thesis aims to address this gap based on the context of small to medium sized manufacturers that produce a high variety of customised products at low volumes (HVLV). For these HVLV manufacturers, ambidexterity appears in all parts of their daily operations. However, the reality seems far more challenging as the flexibility so ingrained in their organisational design can actually be to their detriment.
Taking on the routines-based view of organisation, this thesis aims to uncover the mechanisms that enable ambidextrous capabilities to impact organisational performance in HVLV manufacturers. In particular, this thesis is concerned with the role better management practices (BMP), in the form of production planning and control (PPC) and human resource management (HRM), play in facilitating the deployment of ambidextrous capabilities towards organisational performance outcomes.
A literature review and theory building exercise led to the development of a conceptual model grounded on the hypothesised links between ambidextrous capabilities, BMP and HVLV manufacturer performance. An Australia-wide survey of HVLV manufacturers was subsequently undertaken and the results analysed through the use of partial least squares structural equation modelling.
The outcomes of this research reveal that both PPC and HRM mediate the relationship between ambidextrous capabilities and HVLV manufacturer performance by way of operational flexibility and process innovation. Though providing evidence that BMP form the conduit from which ambidextrous capabilities incur performance outcomes, their impacts prove varied. PPC, whilst effective in facilitating operational flexibility, does not have an impact on process innovation and HRM, whilst useful in inducing process innovation, does not appear to have an impact on operational flexibility.
This thesis adds to the growing body of literature on ambidexterity where BMP are uncovered as a missing link between ambidextrous capabilities and organisational performance outcomes. In addressing the HVLV manufacturing dilemma, this research reveals that merely holding ambidextrous capabilities is not enough. In order to capitalise on these capabilities, HVLV manufacturers need to make effective use of management practices that actually help to get work done in the first place. This thesis ends with a discussion on theoretical and empirical implications as well as suggestions for further research.
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