Understanding the emergence of redistributed manufacturing: an ambidexterity perspective

The purpose of this paper is to extend operations management theory concerning efficiency and flexibility trade-offs to the emergent phenomenon of redistributed manufacturing (RDM). The study adopts a multiple case design including five small and five large pharmaceutical firms. By synthesising the research findings and extant literature we propose organisations can gain the efficiency benefits of centralised manufacturing and the flexibility advantages of RDM by building an ambidexterity capability. To build such a capability, large firms can structurally partition their manufacturing and supply management functions, with one sub-unit managing centralised production and the other RDM. Small and medium enterprises can build an ambidexterity capability by creating the right organisational context, one in which a multi-skilled workforce switches between efficient and flexible tasks. This paper contributes to theory by explaining the emergence of RDM using an organisational ambidexterity lens, laying the groundwork for new theory development in the field. The paper contributes to managerial thinking by providing practical examples of how managers can build an ambidexterity capability to realise flexibility and efficiency advantages.