Applying the Concept of Paradox to a Trade-off Puzzle Framework and Case Study

The flexibility trade-off is one of the most enduring operations management puzzles. This paper applies a theoretical framework of paradox to a trade-off puzzle. A case study method is adopted, and the employment of Causal Loop Diagramming method for qualitative modeling of the paradox and trade-off under investigation and a greater appreciation of the dynamics and subtle ties of the systems and the multitudinous feedback cycles. The results revealed that the interaction of paradoxical elements is the underlying drive of the trade-off, demonstrating different formats at different organizational levels and recursive layers. A brief introduction to the concept of Tai-chi in Taoism also highlights the possible philosophical root. As for managers, a key implication is that both elements in the concern of trade-off and paradox have always co-exist, taking on important and complementary role; Separation of them allows specialization to occur, and co-evolution cultivates synergy to develop, new balance to reach at all organizational levels and forms of recursion.