A Paradox Perspective on how HRM, Mindset and Leadership Interactively Shape Employee Ambidexterity

Abstract

Prior research on contextual ambidexterity suggests that ambidexterity is realized by creating an organizational context that allows individuals to make their own decisions about how to best cater to exploration-exploitation demands. However, more insights are still needed about how employees can best be enabled to successfully handle such paradoxical demands. Building on paradox theory and signaling theory, I propose that by fostering employees’ positive stress mindset, ambidextrous human resource management (A-HRM) builds the collective abilities required to facilitate employee ambidexterity. In addition, I contend that the effect of employees’ stress mindset on ambidextrous behavior is contingent on the extent to which they are motivated and provided opportunity to enact ambidextrous behavior by transformational leaders throughout the organization. Results from a cross-sectional, multi-source study of HR representatives and 17520 employees nested in 92 organizations reveal a positive indirect relationship between A-HRM and employees’ ambidextrous behavior, mediated by employees’ positive stress mindset. Additionally, I find that transformational leadership climate positively moderates the positive effect of employees’ stress mindset on employees’ ambidextrous behavior. Thus, this study provides novel insights into the interplay of HRM, mindset and leadership as crucial levers for employees’ ambidexterity.