Innovation ambidexterity for enhancing supply chain resilience and flexibility of performance in the restaurant sector

Abstract

This study examines the role of innovation ambidexterity (exploratory and exploitative innovation) in developing internet-enabled demand/supply integration and the utilization of such digital capabilities to develop resilience and performance flexibility in the supply chains for the restaurant sector. The study employs the Partial Least Squares Structural Equation Modelling to test the proposed relationships empirically with a structured survey. The results suggest that the exploratory and exploitative innovations substantially strengthen internet-enabled demand and supply integration. These digital capabilities enhance supply chain resilience, which, in its turn, promotes performance flexibility. The study highlights the need for balance between exploratory and exploitative innovation for restaurant managers and investing in digital technologies that streamline the processes of demand forecasting, procurement and contact with suppliers. Enhancement of such capabilities can assist restaurants to effectively respond to disruption and keep operations agile. As part of a digitally shifting service supply chain environment, this research contributes to the existing body of empirical literature by pairing the ambidexterity theory with the dynamic capabilities view to give one of the first empirical explanations of how innovation ambidexterity leads to digital process integration and resilience in the restaurant supply chain.