How purchasing departments facilitate organizational ambidexterity

Abstract

Companies must pursue both exploration and exploitation of supplier’s knowledge in increasingly competitive and complex production environments. This has been referred to as pursuing an ambidextrous supply strategy, extending the mobilisation of resources in pursuit of both aims beyond the borders of the lead manufacturer and into supplier organizations as well. Purchasing and supply management plays an increasingly central role in mobilizing and involving the suppliers in the pursuit of this agenda. The purpose of this paper is to contribute to the literature on organizational ambidexterity and operations management by exploring how purchasing departments contribute to the organizational pursuit of organizational ambidexterity. We explore practices followed by purchasing departments for mediating tensions between supply networks and organizational functions.