Organizational Ambidexterity Theory Research Articles

Unleashing the power of green innovations: the role of organizational ambidexterity and green culture in achieving corporate sustainability

PurposeThis study aims to investigate the effect of organizational ambidexterity (OA) and organizational green culture (OGC) on corporate sustainability (CS) while incorporating the mediating role of green innovation (GI) to provide a detailed insight into CS. The study also presents a research framework based on the Organizational Ambidexterity theory and Natural Resource-based view to explain the factors contributing to CS.Design/methodology/approachUsing stratified sampling, the study collected data through survey-based empirical research from 307 textile companies registered with the Securities and Exchange Commission of Pakistan (SECP) or the All-Pakistan Textile Mills Association (APTMA). The collected data were analysed using path analysis, mediation analysis and moderation analysis through smart PLS-SEM version 4.0 to assess the composition and causal association of factors.FindingsThe study found a significant relationship between OA and OGC with CS. Furthermore, the study revealed that green innovation partially mediates the relationship between OGC and CS. The proposed research framework can be valuable for promoting and recommending actions to enhance CS.Research limitations/implicationsThe study on CS in the textile sector of Pakistan has limitations such as a narrow focus, cross-sectional design and reliance on self-reported data. Future research should explore additional factors, conduct longitudinal research, investigate contextual factors, scrutinize specific green innovation practices and broaden the scope of the study to include SMEs and other textile organizations.Practical implicationsThe research framework can help senior executives to foster CS by promoting OGC, OA and GI. Practitioners and academicians can also utilize or further investigate the proposed framework for validation and to foster CS.Originality/valueThis study fills gaps in the existing literature by investigating the mediating effect of GI between OGC and CS. The proposed research framework provides a comprehensive understanding of the factors contributing to CS based on the Organizational Ambidexterity theory and Natural Resource-based view.

Configurations of Ambidextrous Innovation and Its Performance Implication in the Context of Digital Transformation

Although previous studies have predominantly dealt with innovation ambidexterity, they have only focused on a single innovation activity and overlooked the interaction of innovation activities. Drawing on organizational ambidexterity theory, this study established four types of innovation configurations: dual exploration (technology exploration and business model exploration), business model leveraging (technology exploration and business model exploitation), technology leveraging (technology exploitation and business model exploration), and dual exploitation (technology exploitation and business model exploitation). Using the panel data of 613 listed manufacturing firms in China, this study examined whether and how configurations of ambidextrous innovation affect firm performance in the context of digital transformation. Empirical results provide evidence that a dual exploration and technology leveraging strategy has a positive impact on firm performance, while a dual exploitation and business model leveraging strategy has the opposite effect and is subject to the moderating influence of the level of digitalization. Under high levels of digitalization, the positive effect of the dual exploration strategy on firm performance becomes more significant, while the effects of others are weakened. This study contributes to the organizational ambidexterity literature by providing a finer-grained understanding of the effect of ambidextrous innovation from a configurational perspective. This study also contributes to the digitalization transformation literature by revealing the moderating role of digitalization.

Entrepreneurial culture and disruptive innovation in established firms – how to handle ambidexterity

PurposeThe aim of this paper is to improve the understanding of strategies for how established companies can respond to disruptive innovation, handle increasing complexity, facilitate entrepreneurial culture and processes and successfully manage organizational ambidexterity.Design/methodology/approachA qualitative multiple-case study was conducted to explore successful practices of innovation ambidexterity (IA) and their organizational design, entrepreneurial culture and mindset, processes and leadership. Two internationally established firms that have launched and established IA programs provided deep insight, revealing their strategy and learning on the path toward effective IA.FindingsThe findings show that accepting and managing the inherent complexity increases within an ambidextrous organization strategy is a decisive factor in achieving effective IA. As a result, segmenting small organizational units and granting them extensive autonomy is proposed for managing the complexity of an organization while increasing its effectiveness. Furthermore, it is shown that this helps foster entrepreneurial culture, mindsets and processes as additional mediators for achieving effective IA. Coaching, empowerment and trust were identified as key factors of ambidextrous leadership values that encourage entrepreneurial behavior and decision-making.Originality/valueTo the best of the authors knowledge the first study connecting the research fields of complexity management, organizational ambidexterity theory and entrepreneurial culture while applying the fundamentals of systems theory to propose a practical management framework for successfully responding to disruptive innovation.

Building Parallel Supply Chains: How the Manufacturing Location Decision Influences Supply Chain Ambidexterity

AbstractThe purpose of this paper is to examine how managers can develop ‘parallel’ supply chains to overcome the efficiency/flexibility trade‐offs of offshored versus reshored/nearshored production. Primary evidence is gathered from 22 field interviews with eight companies from multiple countries, all operating in the textile and apparel industry. The interview data is triangulated using a cross‐industry focus group with 28 participants and secondary sources including company annual reports and website information. The study contributes to organizational ambidexterity theory by identifying how companies embed structural ambidexterity in their supply chains, and in so doing create ‘parallel supply chains’. Our findings show that companies partition their production in terms of width (meaning that specific product lines were relocated) and depth (meaning that specific production activities were relocated). Companies then use a mix of offshored production facilities to manufacture low‐margin, long‐lead‐time products as well as reshored/nearshored production facilities to make high‐margin, quick‐response items. The ability to swap production volumes between parallel supply chains enables supply chain ambidexterity, which in turn allows companies to exploit efficiency and flexibility benefits simultaneously. Managers are provided with an empirically informed, step‐by‐step framework for developing structural ambidexterity and building parallel supply chains.

A configurational analysis of innovation ambidexterity: evidence from Chinese niche leaders

Purpose Innovation ambidexterity is crucial for fostering growth and gaining a competitive advantage in small and medium enterprises (SMEs). Previous research indicates that achieving a balance between exploration and exploitation is a multifaceted phenomenon occurring across various levels. This paper aims to examine the influence of individual, organizational and institutional factors on the ambidextrous innovation of Chinese niche leaders using a configurational perspective. Design/methodology/approach This study uses secondary data collected from 69 Chinese niche leaders in the new equipment manufacturing industry. The authors use fuzzy-set qualitative comparative analysis to investigate how owner openness, age, digitization, the formal institutional environment and the informal institutional environment jointly influence innovation ambidexterity. Findings By using fuzzy set analysis, this study categorizes combinations of interdependent factors that promote innovation ambidexterity. In particular, the authors pinpoint three configurations that foster high innovation ambidexterity and two configurations that lack such high levels of innovation ambidexterity. The analysis results suggest that innovation paradoxes in SMEs are linked to a nested system comprising leadership, organizational factors and the institutional environment. Originality/value This study elucidates the mechanism of innovation ambidexterity through a configurational perspective. This research proposes and validates a framework that enables SMEs to develop ambidextrous innovation capabilities, thereby integrating organizational ambidexterity theory and shedding light on the intricately complex nature of innovation ambidexterity.

Research on Ambidextrous Innovation and Regional Innovation Capability in Innovation Ecosystem from Institutional Perspective

According to the organizational ambidexterity theory, the mechanism of ambidextrous innovation on regional innovation capability in the innovation ecosystem is explored, institutional environment is introduced as a moderating variable, corresponding theoretical models are constructed, and empirical research is carried out by application of a two-way fixed effects model based on the panel data of 31 provinces in China from 2009 to 2018. The results show that there is a u-shaped relationship between exploratory innovation and regional innovation capability in innovation ecosystem, and exploitative innovation in innovation ecosystem has a significant positive impact on regional innovation capability. The complementarity of exploratory innovation and exploitative innovation in innovation ecosystem positively affects regional innovation capability. Furthermore, institutional environment strengthens the positive correlation between exploitative innovation and regional innovation capability. On the basis of the above conclusion, it is proposed that each innovation population should strengthen the exchange and sharing of technology and knowledge, carry out independent collaborative ambidextrous innovation, and the government should play a governance role in the innovation environment in order to promote the improvement of regional innovation capability.

Conceptual framework for lean construction ambidexterity in project-based organizations

Lean construction (LC) is widely used to eliminate waste in the construction industry. However, few studies have focussed on LC capabilities. In the absence of a theoretical foundation, the equal treatment of inherent rigidity and flexibility has received little attention. This critical literature review answered the following research questions: What is the current understanding of the two characteristics of LC? Is there a theoretical explanation for their relationship? How can LC capabilities be realized in a project-based organization? The results revealed the lack of a clear definition of LC capabilities. The study posits that LC capabilities involve ambidexterity. Ambidexterity embodies the LC philosophy, principles, and methods, with a focus on resolving the paradoxical tensions in LC projects. Ambidexterity was found to be a two-dimensional paradox comprising exploitative and exploratory capabilities. It emphasizes the achievement of a balance between the two capabilities. The proposed model indicates that LC project-based organizations provide the ideal context for the development of ambidexterity. This study uses a paradoxical lens to introduce the notion of LC capabilities as ambidexterity. This research contributes to the current knowledge and future applications of organizational ambidexterity theory to LC capability development. In addition, it will enable practitioners to understand and manage the paradoxical tensions in LC projects. The proposed framework can guide the creation of an ideal LC project-organization environment.

The ambidextrous patterns for managing technological and marketing innovation

Built upon organizational ambidexterity theory, this study provides a new perspective in managing technological and marketing innovation. It distinguishes between simultaneous and sequential patterns of innovation within a firm and takes a longitudinal approach in examining the differential effects of these two ambidextrous patterns of innovation on firm performance. Further, this study investigates the contingent roles of internal product scope and external market dynamism on the above relationships. Using panel data from 158 U.S. firms over 26 years, we find that both simultaneous and sequential patterns are positively associated with firm performance. Further, our findings indicate that a broader product scope strengthens the effect of the simultaneous pattern on firm performance, while weakening that of the sequential pattern on firm performance. When market dynamism increases, the effect of the simultaneous pattern on firm performance is strengthened, while that of the sequential pattern is weakened. Our findings offer managers guidance on the choice of innovation patterns under certain contingencies and how to better manage technological and marketing innovation over time.

Learning with startups: an empirically grounded typology

PurposeCorporate-startup collaboration is an opportunity for inter-organizational learning. This paper aims to develop an empirically grounded typology to guide researchers and managers in choosing a model that is coherent with the underlying learning processes.Design/methodology/approachThe empirical research consisted of three phases. First, 30 large companies were interviewed to identify different models of interaction. Second, eight different models and cases were selected, and a list of key characteristics of each model was drawn based on the empirical data, obtaining a first typology. Third, the typology was tested, improved and validated on nine corporations.FindingsThe main result of the study is an empirically grounded typology of models for corporate-startup interaction and inter-organizational learning. Six dimensions distinguish each model from the others.Research limitations/implicationsThe paper contributes to extend the literature on inter-organizational learning through different models of corporate-startups interaction. It also contributes to organizational ambidexterity theory, showing how collaboration with startups can improve exploitation and exploration.Practical implicationsThe typology provides an instrument for analyzing and selecting operational models for corporate-startup collaboration and learning. The models can be modified or broadened, creating new hybrids.Originality/valueThe paper presents a novel way of looking at corporate-startup relations by studying them through the lens of organizational learning theory. It explains the existence of different inter-organizational arrangements and provides guidance in selecting the correct model.

Does openness to innovation matter? The moderating role of open innovation between organizational ambidexterity and innovation performance

ABSTRACT Based on organizational ambidexterity theory and knowledge-based view, this study presents a conceptual framework that links organizational ambidexterity, open innovation and innovation performance together and tested this framework by distributing questionnaires to senior managers in East and Mid-China to assess related variables. The empirical study analysis based on 274 returned questionnaires finds a non-linear relationship between organizational ambidexterity and innovation performance and the moderating effects of inbound and outbound open innovation on the ambidexterity-performance relationship. To effectively use organizational ambidexterity, firms need open innovation to use external ideas as well as internal ideas, and to take advantage of both internal and external paths to market.

Innovative sustainability and stakeholders’ shared understanding: The secret sauce to “performance with a purpose”

Firms report their innovative sustainability activities as a way to increase “firm performance with a purpose.” Managing effective sustainability to maintain its relevance and value to stakeholders through organizational ambidexterity is an important undertaking in a business environment that is increasingly concerned with corporate social responsibility. However, the research that links effective sustainability and long-term financial performance is inconclusive. This study uses content analysis and fsQCA to specify and model the pertinent conditions for innovative sustainability. The model shows that firms need to manage stakeholders with heterogeneous motives as a condition for effective sustainability in order to yield long-term financial performance. The findings extend the organizational ambidexterity theory and operationalize stakeholders’ shared understanding as a measure for the stakeholder theory in the context of corporate social responsibility research.

Achieving Temporal Ambidexterity in New Ventures

AbstractOrganizations face a common intertemporal choice problem, where actions suitable in the shortterm are different from those that work in the longterm. Building on the organizational ambidexterity theory, we argue that organizations can reconcile their short‐term and long‐term tensions, but this does necessitate managerial endeavours that orchestrate this reconciliation. We introduce the concept of temporal ambidexterity and define four intertemporal tensions involving an organization’s objectives, resources, markets, and uncertainty. We examine how firms can address these tensions successfully in the context of new ventures, and to do so we focus on three managerial capabilities of founder‐CEOs: expertise breadth, external connectivity, and empowering leadership. Results from 243 new ventures in China suggest that temporal ambidexterity improves with these managerial capabilities, and more so for younger ventures. Our findings shed light on solutions and mechanisms by which intertemporal balance is fulfilled, particularly for new ventures in a dynamic environment.

Ambidextrous Leadership and Sustainability-Based Project Performance: The Role of Project Culture

Most studies in the project management field emphasized the effects of leaders or managers, but these effects have rarely been examined at the project level. To cover this research gap, this study applies organizational ambidexterity theory to examine the effects among ambidextrous leadership, ambidextrous culture and sustainability-based project performance. Using a valid sample of 217 project leaders and members from Chinese construction projects, the method of multiple linear regression was adopted to assess the direct relationship among ambidextrous leadership, ambidextrous culture and project performance. Moreover, the bootstrapping technique through structural equation modeling, has been used to analyze the mediating effect of ambidextrous culture. Additionally, the sample data was divided into different groups according to the median value of the variables to conduct the ANOVA and to assess the within-group differences. The results indicated a positive and direct relationship that ambidextrous leadership has on project performance and ambidextrous culture. In addition, there was also a mediating impact of ambidextrous leadership on project performance via ambidextrous culture. Thus, ambidextrous leadership combined with transformational leadership as well as transactional leadership likely has a stronger positive impact on project performance through fostering the adaptive culture and consistent culture. Our findings contribute to an in-depth understanding of the role of the leader and culture for project outcomes. The project-based organization in construction projects could train project leaders’ ambidextrous leadership behavior to facilitate the formation of an ambidextrous culture and to increase project performance. Moreover, this study enriches the existing literature on leadership and project management by highlighting the important path of ambidextrous leadership and ambidextrous culture on the performance at the project level and going beyond the single leadership behavior or single culture.

Unpacking International Ambidexterity: An Integration of International Business and Organizational Ambidexterity Theory

Existing research has paid enough attention to international strategy, but still largely treated internationalization as a whole in empirical test. This paper systematically reviews the internationalization theory based on the explorative view, internationalization theory based on the exploitative view, and internationalization theory based on the organizational ambidexterity perspective. Based on the integration of international business and organizational ambidexterity theory, we put forward the definition and measurement of international ambidexterity, and finally come up with the research framework of international ambidexterity.

Strategic orientation and performance of new ventures: empirical studies based on entrepreneurial activities in China

The purpose of this paper is to investigate the relationship between the strategic orientation and performance of new ventures. Based on organizational ambidexterity theory, we formed five hypotheses to describe the relationships among entrepreneurial orientation, market orientation, and technological orientation, as well as their impact on new venture performance. Using a sampling of 199 new ventures, the regression results reveal that exploration-entrepreneurial orientation and exploitation–technological orientation have a significant impact on entrepreneurial performance, whereas exploitation–market orientation does not. Interaction between entrepreneurial orientation and technological orientation shows a significant positive impact on entrepreneurial performance.

Averting risk or embracing opportunity? Exploring the impact of ambidextrous capabilities on innovation of Chinese firms in internationalization

Purpose The purpose of this paper is to examine the impacts of ambidextrous capabilities, explorative capability and exploitative capability on product innovation performance in the context of internationalization and cross-cultural environment; and to examine the moderating effects of CEO’s preference of risks and opportunities in the international market on the relationship between ambidextrous capabilities and multinational enterprises’ (MNEs) product innovation performance. Design/methodology/approach Data were collected from 189 MNEs located in China, which develop international business through export, outsourcing, foreign equity investment or foreign direct investment. Measurement reliability and validity were examined and hierarchical linear regression was used to test the hypotheses. Findings Results indicated that both explorative and exploitative capability are positively related to MNEs’ new product development and commercialization of Chinese MNEs; and CEO’s preference of risks and opportunities in international market plays a significant moderating role in the two phases of product innovation. Research limitations/implications This study extends organizational ambidextrous capabilities theory to better understand the effects of explorative capability and exploitative capability on innovation performance in the context of internationalization and national cultural differences. Sample constitution is a possible limitation. Practical implications MNEs, especially those from emerging economies, should develop both explorative and exploitative capability to be flexible and competitive in dealing with cultural differences. fully take risks and opportunities should be taken into consideration regarding the international market and national cultural differences, and take an effective contingency strategy, driven by the ambidextrous capabilities toward new product innovation development and commercialization. Originality/value An empirical examination of how ambidextrous capabilities impact on Chinese MNEs’ new product development and commercialization connects the organizational ambidexterity theory to the innovation and characteristics of upper echelons.

Organizational ambidexterity as a new research paradigm in strategic management

Long-term survival and growth depends on the firm’s ability to exploit its current competencies while exploring fundamentally new ones. Finding the balance between exploration and exploitation is called ambidexterity in the literature. This paper is a comprehensive review of organizational ambidexterity theory. Creating and maintaining the capacity to simultaneously pursue these contradictory activities is an extremely difficult managerial challenge. Although, several aspects are well-researched, especially structural and leadership solutions in large, multinational enterprises, but little is known about: (1) how ambidexterity forms in earlier growth stages? (2) What are the key drivers and elements of organizational context that makes organizations able to become ambidextrous? (3) What is the role of different managerial levels in this formation process? Reviewing the literature, in this article the author would like to introduce the paradox of exploration and exploitation, the tensions and different aspects of ambidexterity, the fields current stage and some important research gaps.