Product Innovations through Ambidextrous Organizational Culture with Mediating Effect of Contextual Ambidexterity: An Empirical Study of IT and Telecom Firms

Fiaz Muhammad,Kanwal Naveed,Amir Ikram,Syed Khurram Jafri

doi:10.3390/joitmc7010009

Abstract

Considering the universal competitive pressures, it is imperative for the organizations to be more dynamic and innovative. The viability of companies is dependent on innovation and organizational culture is regarded as an important component in realizing the objective of product innovation. The study examines the association between ambidextrous organizational culture and product innovation outcomes through mediation of contextual ambidexterity. By pursuing the snowball sampling technique, pre-established structural questionnaires were distributed among the top management of IT and Telecom sector, 125 valid questionnaires were considered for data analysis purpose. The collected data was analyzed using Smart PLS software and measurement model was assessed with respect to reliability and validity. Structural model was assessed for hypothesis testing using bootstrapping technique. Results indicated that organizational diversity significantly and positively affect new product innovation outcomes i.e., incremental, radical product innovation, and speed to market, whereas shared vision positively affect incremental product innovation. Indirect effects results indicated that significant positive partial mediation of contextual ambidexterity exists between organizational diversity and new product innovation outcomes, i.e., radical innovation and speed to market. Whereas full and significant positive mediation role of contextual ambidexterity exists between shared vision and new product innovation outcomes i.e., radical innovation outcomes and speed to market. At last, no significant mediation role of contextual ambidexterity exists between organizational diversity and incremental innovation outcomes.

Highlights

The phenomenon of ambidexterity has been defined as an organizational ability to cope with its opposing ends and pressures
Reliability was assessed through composite reliability for all constructs as organizational diversity, shared vision, performance management, social support, radical product innovation, incremental product innovation and speed to market and found to be at par or above the threshold values
The results infer that organization diversity significantly affects incremental product innovation outcomes in organization, ensuring a positive role of organizational diversity on incremental product innovation outcomes

Summary

Introduction

The phenomenon of ambidexterity has been defined as an organizational ability to cope with its opposing ends and pressures. By solving these opposing tensions, the firm can build ambidexterity in the organization which results in higher performance of the organization [1,2]. Researchers state four groups of traits which act together to explain the context of the organization. These traits combine together to generate two extents of organizational context [5]. As a matter of fact, the contextual ambidexterity is stranded in the kind of organizational culture that encourages both creativeness and discipline in the organization [6].

Methods

Results

Discussion

Conclusion