Organizational ambidexterity and its performance implications in emerging economies: empirical study from Kazakhstan

Abstract

Today Kazakhstan enterprises are constantly challenged to become competitive in the domestic and foreign markets, adequately respond to an increasing number of changes and thus choose between innovations and efficiency. Earlier research proposed an ambidextrous strategy as a means of overcoming this challenge. However, previous literature mainly relies on data from developed economies. Few studies use the data from emerging economies, which includes Kazakhstan. Thus, the aim of this study is to empirically assess the effect of ambidexterity on firm performance and resilience. Following a quantitative method and using a multi-item survey instrument, a total of 323 questionnaires were distributed to 80 different organisations in Kazakhstan. SmartPLS 3 was used to investigate structural equation modelling (SEM) estimates. The results show statistically significant relationships between organisational ambidexterity and firm performance, and between ambidexterity and organisational resilience. The value of this paper lies in the following aspects. First, it extends the research on the impact of organisational ambidexterity on firm performance and the relevance of this relationship to emerging economies. Second, this study is, to the best of our knowledge, the first empirical investigation of the ambidexterity-performance and ambidexterity-resilience relationship in developing countries, particularly in Kazakhstan. An important practical relevance of this study is the finding that the application of organisational ambidexterity in the turbulent environment in which contemporary Kazakhstani firms operate can help transform organisations to respond to market uncertainty in a timely manner and remain competitive.