Organizational Ambidexterity, Performance and Knowledge Management: Empirical Evidence from the Energy and Pharmaceutical Sectors

Abstract

Purpose: Several types of organizational ambidexterity proposed in the relevant literature were quantitatively analyzed in the paper. Considered ambidexterity strategies was justified by different types of knowledge management that may be applied in each case for their successful implementation. Knowledge Management is considered an institutional system which is in place in almost all companies but used differently. Yet effective knowledge management is a major driver of sustainable company development, it’s among the essential ingredients for effective use of companies knowledge and competencies as well as for strategy development and competitive intelligence. Design/methodology/approach: Empirical analysis of different ambidexterity strategies for the energy and pharmaceuticals sectors was provided. Data envelopment analysis (DEA) method was applied to estimate organizational ambidexterity using innovation performance measures. The DEA score based on entrepreneurial intensity input and short term and long term performance acted as a proxy for organizational ambidexterity. Sustainability and product ambidexterity were also considered as the key factors of organizational ambidexterity. Results: Estimations strongly associate organizational ambidexterity with efficiency of the company in both sectors examined here. Positive relation between performance and organizational ambidexterity for energy sector were discovered. At the same time orientation towards sustainability disrupts performance of pharmaceutical companies. The analysis provided in the paper provides indication for coupling knowledge management and organizational ambidexterity. Originality/value: The new approach for measurement of organizational ambidexterity using DEA is proposed in the paper. Different strategies including product ambidexterity and sustainability are estimated and their performances are compared. Knowledge management practices are used to justify the choice of ambidexterity strategies.