Understanding the emergence of redistributed manufacturing: an ambidexterity perspective

Abstract

This paper extends operations strategy theory on 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. We propose that organizations can gain the efficiency benefits of centralized 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 centralized production and the other RDM. Smaller enterprises can build an ambidexterity capability by creating the right organizational context, where multi-skilled workers switch between efficient and flexible tasks. This paper contributes to theory by explaining the emergence of RDM using an organizational ambidexterity lens, laying the groundwork for new theory development in the field. We provide managers with a practical example of how to build an ambidexterity capability to realize flexibility and efficiency advantages.

Keywords:

• Redistributed manufacturing
• organizational ambidexterity
• supply networks
• 3D printing
• additive manufacturing

Acknowledgements

The authors would like to acknowledge the support of the Engineering and Physical Sciences Research Council (EPSRC) in carrying out this research. We are also grateful to the Redistributed Manufacturing in Healthcare Network (RiHN) for guidance and support throughout the research project.

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This work was supported by the Engineering and Physical Sciences Research Council (EPSRC) [grant number EP/M017559/1] – Redistributed Manufacturing in Healthcare Network (RiHN).

Notes on contributors

Samuel Roscoe

Samuel Roscoe is a Lecturer in Operations Management at the University of Sussex. Samuel completed his PhD at the University of Manchester on the topic of incremental and radical eco-innovation development in supply networks. He completed his MSc in Supply Chain Management at the Cranfield School of Management in 2010. Before joining academia, Samuel worked in industry for 15 years in a variety of supply chain management roles. His most recent role was with Adidas where he was responsible for managing the company’s warehouse for the London 2012 Olympic Games. Prior to this role, Sam worked as a consultant on a large supply chain improvement project in Romania and as a logistician for Medecins Sans Frontieres (MSF) in Liberia.

Constantin Blome

Constantin Blome is a Full Professor of Operations Management and Subject Group Lead of the Management & Organisation Group at the University of Sussex. Prior to this role, Constantin was a GlaxoSmithKline Chaired Professor in Strategic Sourcing and Procurement at Universite Catholique de Louvain, Belgium. He has also taught at several international institutions including MIT (visiting scholar), EBS Business School (assistant professor of sourcing in emerging markets), Indian Institute of Management Bangalore (research fellow) and Michigan State University (visiting scholar). Constantin studied at the University of Bielefeld and the Technical University of Berlin (MSc and PhD) and finished his habilitation at the EBS Business School, Germany. Constantin’s research interests include supply chain management, procurement and operations management with strong focus on sustainability, innovation and risk issues.