Achieving Supply Chain Sustainability from Ambidextrous Supply Chain Strategy: Unearthing the Role of Digital Capability and Reconfiguration

Abstract

This study investigates how an ambidextrous supply chain strategy enhances supply chain sustainability (SCS) during digitalization through the lens of dynamic capability and agency theories. It develops and empirically tests an integrated capability-based framework using PLS-SEM. The findings show that ASCS significantly strengthens both digital adaptability (DA) and reconfiguration capabilities (RC). It also has a positive direct effect on SCS. This indicates that the sustainability benefits of strategic ambidexterity are realized partly through firms’ capabilities. Incentive governance (IG) also significantly effects the organizational capabilities. However, contrary to expectations, IG negatively moderates the relationships between ASCS and DA and RC. It suggests a possible substitution or diminishing-marginal-return effect. Furthermore, the study distinguishes DA from broader RC and refines AT by showing that governance mechanisms may complement strategic orientations under some conditions while partially substituting for them under others.