Ambidexterity in SBUs: TMT Behavioral Integration and Environmental Dynamism

Abstract

This study seeks to advance previous research by linking top management team (TMT) processes to organizational ambidexterity, and highlights the importance of environmental dynamism as a boundary condition on the effectiveness of TMTs in promoting balance between exploratory and exploitative learning. The findings from multiple respondents (245 TMT members, including the CEO of the SBUs, and 883 employees) in 101 small‐sized strategic business units (SBUs) with a defined product line indicate that TMT behavioral integration helps build ambidexterity, but that the influence of TMT behavioral integration on ambidexterity is stronger when the task environment is characterized by a high level of dynamism. These findings contribute to a better understanding of the conditions under which behaviorally integrated TMTs are able to pursue an ambidextrous orientation in relatively small‐sized units. © 2015 Wiley Periodicals, Inc.