Beyond lean manufacturing: the productivity, innovator's and proactivity dilemmas resolved

This dissertation provides direction for the management of exploration in an exploitative context by specifying the theory for a universal model of ambidexterity. Research in ambidexterity centres upon how exploration for the future and exploitation of the present can be achieved simultaneously through the management of innovation. Ambidexterity theory strives to resolve the Productivity and Innovator’s Dilemmas, which assert collectively that exploration is inherently antagonistic to exploitation. The Productivity Dilemma asserts that the organisation and routinisation of processes required for efficient exploitation are incompatible with the flexibility required for exploration. The Innovator’s Dilemma asserts that a focus on exploitation through incremental innovation in a stable environment inhibits exploratory innovation, which leaves an enterprise vulnerable to obsolescence from disruptive innovation. Whilst ambidexterity is an issue that dominates in the literature for innovation management and manufacturing systems, the theory for a unifying framework that reconciles competing approaches is not reported. Moreover, the methods and tools for the execution of ambidexterity require significant development.

The candidate contends in this dissertation that the ambidexterity issue is epitomised by Toyota’s announcement in 2007 of its intent to implement transformational innovation (kakushin) in a controlled and historically consistent environment. Toyota is known for its system of “Lean Manufacturing”, which is regarded widely for its high productivity and institutionalised continuous improvement (kaizen).

This dissertation gives a new perspective on Lean Manufacturing by its critical evaluation through an interdisciplinary framework of innovation, economic and behavioural criteria. Lean Manufacturing is de-constructed and shown to be a systematic evolution from ordered antecedents, which represent an exploration-exploitation continuum that can be used to reconcile the competing approaches towards ambidexterity. Furthermore, a third dilemma is presented by this dissertation, which acts in concert with the Productivity and Innovator’s Dilemmas and is named by the candidate the “Proactivity Dilemma”. The Proactivity Dilemma asserts that exploratory behaviour is perceived increasingly non-proactive as proactivity in exploitation increases.

The candidate uses the insights from their new perspective on Lean Manufacturing to specify the theory for a universal model of ambidexterity. The candidate’s model of ambidexterity encompasses nine core organisational processes, which are categorised by Operations Management, Product Development and Strategic Planning.

This dissertation provides comprehensive direction for the simultaneous management of productivity and innovation, from “boardroom” strategy to “shopfloor” tactics.