Ambidextrous organizations and firm performance: the role of marketing function implementation

Abstract

Managers continue to struggle with implementing a firm's approach to its market. Many potential pitfalls exist, particularly at the functional level. For firms that pursue an ambidextrous approach, simultaneously exploiting existing markets while exploring new opportunities, implementation is perhaps even more critical. Interestingly, the implications of functional implementation on multiple dimensions of financial and non-financial performance in the context of an ambidextrous approach are unknown. In light of these challenges, we examine the mediating effect of the implementation of the marketing function strategy in the ambidextrous organization–performance relationship. We find that the implementation of marketing strategy fully mediates the ambidextrous organization–performance relationship on important dimensions of firm performance, including key outcomes such as profits and customer satisfaction. Our results demonstrate that the benefits of developing an ambidextrous organization that can balance both exploitation and exploration are enhanced when the role of function implementation is incorporated into theory and research designs.