Abstract
Having experienced the turbulent change in corporate value rankings over the past 20 years, companies are paying attention to their reorganization to quickly recognize changes and proactively adapt to these changes for survival. This study examines the relationships and intervening ambidexterity mechanisms between CEOs’ leadership style and employees’ learning agility. Using multilevel regression, we analyze hypotheses on a sample of 102 participating CEOs and 236 employees. Results reveal that the ambidextrous organization, which pursues the current organizational development while constantly adapting to changing environments, plays a role as a partial mediator between transformational leadership and members’ learning agility. These results explain that to increase the organization’s agility, a systematic organizational structure system that stimulates members’ motives and simultaneously pursues utilization and exploration must be established through clear goals and appropriate stimuli even in an uncertain environment. Our finding contributes to an understanding of how the CEO’s leadership style affects employees’ learning agility in ventures and to what extent the contextual ambidextrous structure influences the relationship.
Highlights
What are the competencies that companies need to survive in an era of increasing uncertainty? According to Darwin (1964) [1], “The surviving species are not the strongest or the smartest, but the ones that adapt best to change.” Companies with 100 years of history have experienced turbulent changes in corporate value rankings in the last 20 years [2]; they need to accurately recognize, respond, and adapt to changes for survival [3].According to the CB insight [4], the pace at which organizations learn and change is a critical factor
To confirm whether the ambidextrous organization has a mediating effect on the reTo confirm whether the ambidextrous organization has a mediating effect on the lationship between the leader’s transformational leadership and the employees’ learning relationship between the leader’s transformational leadership and the employees’ learning agility, we must verify first whether the independent variable has a significant influence agility, we must verify first whether the independent variable has a significant influence on on the dependent variable (See Figure 2)
ThereTherefore, in testing Hypothesis 2 (H2) (i.e., the ambidextrous structure has a mediating effect on the fore, in testing H2, this ship between the CEO’s transformational leadership and the learning agility), this study study confirms the direct and statistically significant effect of transformational leadership confirms the direct and statistically significant effect of transformational leadership on the on the ambidextrous structure in step 2 (β = 4.18, p = 0.0.000, t = 11.29)
Summary
According to the CB insight [4], the pace at which organizations learn and change is a critical factor. Energy” in 2009, it took 20 months for another unicorn company to be born. Since 2018, one unicorn company has been born every three days. Previous studies have demonstrated that the more dynamic the society is, the more critical is the learning competencies of the members to create results; these competencies are maximized when the members of the organization sensitively respond to the environment and accommodate change [5,6,7]. Organizations must increase their learning agility for survival and pay attention to the needed leadership style and innovation strategies. CEO leadership is found to be very closely related to improving learning capabilities in the work environment [8]; among others, transformative leadership styles have a powerful influence on organizational learning [9]
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