Technological Capacity and Organizational Culture: the Importance of Organizational Ambidexterity in the Banking Sector

Abstract

Purpose: The research aims to identify the role of organizational cultures mediating technological capacity in the relationship with organizational ambidexterity. Theoretical framework: The effect of technological capacity on organizational ambidexterity is still relatively low. However, when technological capacity is mediated or supported by organizational culture, the effect of technological capacity on organizational ambidexterity becomes greater when compared to its direct effect. Design/methodology/approach: An online poll was utilized to collect data from the highest levels of management in Indonesia's banking industry. Following nine months, 75 responders completed the surveys. We employed Smart PLS software for statistical analysis and testing hypotheses. Findings: The findings revealed that technological capacity and organizational cultures have a beneficial effect on organizational ambidexterity. Organizational cultures mediate the impact of technological capacity and organizational ambidexterity. Research, Practical & Social implications: The study shows that the role of technological capacity with an established organizational culture will support acceleration in achieving organizational ambidexterity. This research contributes to the existing literature by empirically examining the relationship between technological capacity, organizational cultures, and organizational ambidexterity. Originality/value: Several research models and empirical investigations have investigated the relationship between organizational culture, technological capacity, and ambidexterity. There has been a paucity of research on the ‘technological capacity’ of the banking sector, particularly in developing nations.