Rightshoring for ambidexterity: supply chain reconfiguration in response to geopolitical disruptions

Abstract

Companies have extensively invested in offshoring strategies, creating geographically dispersed, complex networks. The concept of organisational ambidexterity through balancing the exploration (flexibility) and exploitation (efficiency) capabilities in supply chains is important as firms mitigate the negative impact of supply chain disruptions. In this study, we aim to identify the mechanisms by which companies cope with geopolitical and natural disruptions, such as the US-China trade war, Brexit, and the coronavirus pandemic. This study highlights companies’ need to be simultaneously efficient and responsive in operations to cope with the impact of a global pandemic and geopolitical tensions.