Disentangling the antecedents of the relationship between organisational performance and tensions: exploration and exploitation

Abstract

Numerous researchers have emphasised the importance of and the advantages brought by the emergence of organisational ambidexterity. Importantly, organisations are obliged to manage the tensions and conflicts that arise from the exploration of knowledge and the exploitation of existing capabilities to find the appropriate balance between the two to yield synergistic effects. This study assesses the phenomenon of organisational ambidexterity and elucidates how exploitation and exploration can both be applied to successful management strategies. This will fill a research gap. A quantitative survey comprising a total of 234 valid samples was conducted, collecting data from Taiwanese electronics and electronic motor manufacturing firms. In this study, structural equation modelling is used to detect the relationship between variables in the model, and there are many items in the consideration of certain facet scales. The results reveal the significant correlations among exploration/exploitation, ambidexterity, organisational performance and tensions. According to the findings elicited by this study, we further propose theoretical and practical implications and future directions.