Organizational ambidexterity, brand management capability and brand performance

Abstract

PurposeThe purpose of this study is to examine the extent to which an organization’s pursuit of radical and disruptive innovations and refinement of existing processes and incremental innovations influence the brand management capability, and subsequently, the brand performance in business-to-business firms.Design/methodology/approachThe key informant approach is used for data collection. Panel data are obtained using the services of a reputable research firm. Existing scales are used to measure all the focal constructs. Partial least squares based structural equation modeling is used to test the hypotheses.FindingsThe results of this study indicate positive associations of both exploitative and exploratory innovation types with brand management processes. These findings signify the need for organizations to balance both these innovation types to maximize their performance.Research limitations/implicationsThis study prescribes an insight into the complex relationship that exists between organizational ambidexterity, brand management processes and brand performance, providing a framework that reconciles the seemingly conflicting goals of relevance and consistency in the development of brand management capability.Practical implicationsGiven that very few firms can achieve ambidexterity, this study provides a means to maximize the potential of this organizational process.Originality/valueThis study borrows from the existing research on brand management to argue that organizations are required to balance both exploitative and exploratory innovation types to maximize their performance.