Organisational Ambidexterity in the UK Financial Services: A Corporate Level Perspective

Abstract

This paper fills theoretical gaps in the scholarly discourse of organisational ambidexterity (OA) by focusing on the concepts of balanced dimension (BD) and combined dimension (CD) of OA. Through a qualitative cross‐comparative case study method it investigates BD/CD at corporate level within the dynamic and competitive UK financial services sector. The study brings greater clarity on the construct of OA and its use in real practice. It shows that forms of OA, CD and BD, are influenced by the firm's strategic choice in specific market segments. Niche players pursuing focused differentiation attain a CD, whereas large players pursuing cost leadership attain a BD of ambidexterity. Exploitation‐exploration efforts are triggered by sets of firm's contingencies that are distinctive to each dimension. Resource flexibility moderates the attainment of desirable ambidexterity's dimensions in contexts of munificent resources. At the corporate level, managers’ long tenure facilitates OA. Theoretical and practical implications are offered.