Organizational Ambidexterity Research Articles

Investigation of the Effect of Organizational Ambidexterity and Innovation Capability on Supply Chain Performance: An Empirical Study of Indonesian MSMEs

Objective: There is no research on organizational ambidexterity and innovation capability on supply chain performance in Indonesia. The purpose of this research is to analyze the relationship between Organizational Ambidexterity on supply chain performance, Organizational Ambidexterity on innovation capability, Innovation capability on supply chain performance in SMEs in Indonesia. Method: This research method is quantitative causality, data analysis uses structural equation modeling (SEM) partial least squares (PLS) with the data processing tool SmartPLS 3.0. The respondents of this research were 350 SMEs owners in Indonesia who were determined by simple random sampling method. The research data was obtained by distributing online questionnaires through social media. The questionnaire was designed using questions with a Likert scale of 1 to 7. The stages of data analysis were the outer model test, namely convergent validity, discriminant validity and composite reliability and the inner model test, namely the determination test and hypothesis testing or significance test. The independent variable in this study is organizational ambidexterity, the mediating variable is innovation capability and the dependent variable is supply chain performance. Result: The results of the data analysis show that organizational ambidexterity has a positive and significant effect on supply chain performance, organizational ambidexterity has a positive and significant effect on innovation capability, innovation capability has a positive and significant effect on supply chain performance. Conclusion: This research only focuses on MSME businesses. The results of this study can complement existing theories. The results of this study can be used as reference material for MSME business owners. Then the results of this research can also be used as a reference for MSMEs in improving marketing performance by increasing product innovation and market orientation directly or through organizational ambidexterity. Based on this, there is an influence of Organizational Ambidexterity and Innovation Capability on SMEs Performance. So it is necessary to analyze whether or not there is an influence exerted by Organizational Ambidexterity Innovation Capability and on SMEs Performance. This research is expected to provide theoretical benefits, namely increasing the contribution of knowledge, especially regarding Organizational Ambidexterity and innovation capability to MSME performance, while practical benefits can be used as input for SMEs in carrying out Organizational Ambidexterity and Innovation Capability in order to improve SMEs performance.

The influence of shared vision on organizational ambidexterity in coffee marketing co-operative societies in Kenya

Coffee production in Kenya has plummeted, hurting the economy and worsening social inequality and poverty. Kenyan coffee marketing cooperative associations have failed to boost exports. Coffee is Kenya's main cash crop. Coffee is the country's principal foreign exchange earner, rural employment source, food security source, and revenue source. The reduction in coffee export earnings shows that coffee marketing cooperatives are inefficient and less flexible. This study examines how shared vision affects organizational ambidexterity. This transformational leadership-based study used exploratory and cross-sectional survey methodologies. The target audience was Kenyan coffee marketing cooperatives. The sample size was 242 Kenyan coffee marketing cooperative societies. A self-administered, semi-structured questionnaire collected primary data from cooperative society managers. The data was analyzed using descriptive and inferential statistics. Results show that shared vision favorably impacts organizational ambidexterity (R = 0.547, R2 = 0.299), explaining 29.9% of variation. Further, shared vision significantly affected organizational ambidexterity (P-value = 0.00). The study found that shared vision affected organizational ambidexterity. Thus, managers of coffee marketing cooperative societies should constantly discuss their vision with other employees to improve ambidexterity.

Anticipating Change in the VUCA Era: Examining the Impact of Paradox Leadership, Organizational Ambidexterity, and Employee Readiness to Change on Public Sector Organizational Performance

In the new Normal era which is filled with uncertainty and ambiguity termed Volatility, Uncertainty, Complex, and Ambiguity, leaders of public organizations are faced with various contradictory conditions (paradoxes) especially to prepare the organization and its employees to change to become more effective and efficient in serving the community. For this reason, a paradoxical leadership style is needed that uses the integration of paradoxical things to meet the needs of the organization and the needs of employees simultaneously. In addition, public organizations are also required to learn to be ambidextrous, that is, to be able to exploit all potentials and resources 'currently' at once. simultaneously exploring and adapting to changing 'future' conditions. The readiness of employees to change is also an important factor to deal with change. In the end, it is hoped that organizational performance can improve and be more adaptive to change. Keywords: Paradox Leadership; Organizational Ambidexterity; Employee Readiness to Change; Organizational Performance

Servant Leadership as a Catalyst for Middle Managers’ Learning Ambidexterity: A Resource‐Based Perspective

AbstractAlthough recent years have seen a proliferation of research on organizational ambidexterity, important questions remain about the role that leaders play in leveraging learning ambidexterity for organizational benefits. Drawing on the conservation of resources theory, we investigate the indirect links between servant leadership and middle managers’ learning ambidexterity, with structural empowerment and role breadth self‐efficacy (RBSE) as serial mediators. We also examine the importance of leader boundary‐spanning behaviour as a moderating factor for these relationships. Using time‐lagged and multi‐source data from 344 middle managers and their supervisors, we show that servant leadership has a positive indirect influence on two forms of learning ambidexterity: exploitative and explorative learning. In particular, servant leadership promotes structural empowerment (as a contextual resource), which in turn influences RBSE (as a personal resource) and encourages learning ambidexterity. In addition, we show that when leaders engage in boundary‐spanning behaviour, these indirect relationships become more prominent. This research offers new theoretical and practical insights to assist organizations in improving learning ambidexterity and achieving higher levels of performance.

Organizational Ambidexterity Dimensions as Effective Axes for Digital Transformation

This paper focuses on highlighting the effective role played by the dimensions of organizational ambidexterity in creating a digital transformation within the company. For this purpose, we used the survey method directed at 530 workers in an organization selling agricultural equipment in Algeria, which witnessed a rapid digital transformation after the Covid-19 pandemic.

Understanding cross-sectoral innovations for urban water management through the lens of organizational ambidexterity

ABSTRACT Urban water systems worldwide need integrated, cross-sectoral innovations to anticipate developments like climate change and population growth. Development and implementation of such innovations is challenging due to the operational and sectoral mindset of organizations in which these innovations take place. This study uses the concept of ambidexterity to get a better understanding of how organizations responsible for urban water management deal with the tension between operation and the need for innovation. We focused on Amsterdam and Rotterdam, two Dutch cities that are global frontrunners in urban water management. Combining a desk study with 25 semi-structured interviews, we found four mechanisms to manage innovation and operation tensions: network, hierarchical, process and human-resource mechnanisms. Different from the literature on ambidexterity, our empirical findings show that the connection between operation and innovation is dominated by networks rather than by executives. Hierarchical mechanisms could be used to complement this, catalyzing innovation or formalizing it.

Connecting the dots: a serial mediation of intellectual capital and organizational ambidexterity between high-performance work system and innovation performance

PurposeAchieving innovation performance (IP) through high-performance work system (HPWS) remained relatively unexplored. Literature on the HPWS-IP linkage mechanism raises a question mark and highlights the existence of a black box. Therefore, the present study aimed to empirically fill the gap in the literature by developing a framework to theorize HPWS nexus with IP through serial mediation of intellectual capital (IC) and organizational ambidexterity (OA).Design/methodology/approachTo answer the study questions survey-based, multi-source and time-lagged data were collected to examine the proposed model. SPSS 24 version was used to evaluate descriptive statistics and through Smart-PLS 3.32., partial least square structural equation modeling (PLS-SEM) was employed to test the study hypotheses.FindingsStudy findings indicate that HPWS not only has a significant direct impact on IP but also has a significant indirect relationship with IP through the mediation of IC and OA. Both IC and OA also mediated this relationship serially.Originality/valueThe originality of the study lies in the fact that it studied HPWS as an antecedent of IC and OA and IP as the consequence. Further, the study fills the knowledge gap in previous literature in which limited or no study has used the serial mediation model with two mediators particularly IC and OA to explore the relationship between HPWS and IP.

The effect of organizational ambidexterity on sustainable performance: A structural equation analysis applied to the Spanish wine industry

AbstractThis research analyzes how organizational ambidexterity (OA) affects sustainable performance in the Spanish wine industry, as well as the catalytic role of corporate social responsibility (CSR) practices and knowledge management infrastructure (KMI) on these variables. For this purpose, a theoretical model is elaborated based on the literature review carried out, which is contrasted following a quantitative approach by means of structural equation modeling (PLS‐SEM) with primary data collected from 202 Spanish wineries between September 2021 and January 2022. The research results show that there is a positive and significant relationship between OA and sustainable performance. Likewise, OA partially mediates the CSR‐sustainable performance and KMI‐sustainable performance relationship. Thus, the present research contributes to the literature in several ways. First, to the best of our knowledge, there are no previous studies that have analyzed the effect of OA on sustainable performance in the wine context, which represents an opportunity to advance scientific knowledge. Second, to our knowledge, there is no previous scientific production that has analyzed what may be the triggers of OA. Third, the proposed theoretical model has not been addressed previously, so that, through the research, a new way of understanding the improvement in the economic, social and environmental performance of wineries is formulated [EconLit Citations: L66, 03, M1].

A Case Study: How Does Green Market Orientation Impact MSMEs Marketing Performance Through Organizational Ambidexterity?

Environmental issues are a serious concern in several countries including Indonesia. Sustainable national development still pays attention to environmental conservation efforts. One of the business entities that has an important role in national development is the Small Micro and Medium Enterprises (MSMEs) sector. This study seeks to understand how green market orientation impacts MSMEs’ marketing performance through organizational ambidexterity. The sample in this study were 117 MSMEs in the city of Semarang. The method used is outer model and inner model analysis with intervening variables using Smart PLS. From the statistical tests conducted, it was found that green market orientation (GMO) affects marketing performance directly and indirectly through organizational ambidexterity. This shows that if GMO is getting better, it can increase the level of marketing performance both directly and through intervening organizational ambidexterity.

To Seek Program Accreditation, Innovation, or Both?—Examining the Interdependencies in High-Reliability Health Care Organizations

In dynamic markets, organizations have to be ambidextrous to adapt to constant change. Simultaneously, organizations are increasingly required to adopt quality management accreditation. Standardization through accreditation bares the risk of limiting an organization’s dynamic capabilities. In this study, we aim to evaluate the determinants of organizational decision-making to seek accreditation and pursue innovation activities, whether accreditation and innovation activities help organizations reach their strategic goals, and if accreditation affects the ability to achieve ambidexterity. We explore these relationships in high-reliability health care organizations. We conducted semi-structured interviews with 11 physicians and 14 quality managers in hospitals that provide specialized cancer care in Germany. In an inductive grounded theory approach, we develop a conceptual model of the relationship between accreditation and innovation activities. We find that hospitals engaged in both activities to achieve quality and financial goals. For smaller hospitals, accreditation was a necessary condition to be able to compete in market environments. Regardless of competition, smaller hospitals benefitted from a positive effect of accreditation on incremental process and product innovation. For larger hospitals, obtaining accreditation was a necessary condition to acquire additional funding, but the influence on innovation activities was limited because these were already being pursued with high intensity. Ideally, program accreditation and innovation activities can be aligned to achieve superior quality and financial performance through organizational ambidexterity. Organizational decision-makers must align both activities while taking account of costs and benefits. Policy makers can support access to high quality care by setting incentives to acquire accreditation.

Predicting the impact of big data analytics capability and green absorptive capacity on green entrepreneurship orientation and eco-innovation

PurposeBased on the dynamic capability view, this study aims to draw for the first time the missing link between big data analytics capabilities (BDAC) on both green absorptive capacity (GAC) and green entrepreneurship orientation (GEO). It is theoretically necessary to address how BDAC levels up the GAC to achieve the same level of GEO and then respond to their green business agenda. In addition, the study introduces knowledge sharing (KS) and green organizational ambidexterity (GOA) as potential moderating factors in the relationship between GEO and eco-innovation and explores the mediation role of GAC in the BDAC–GEO relationship.Design/methodology/approachThe study collected 268 questionnaires from employees working in Chinese manufacturing firms using a self-administered survey and cross-sectional research design. The study applied SmartPLS to analyze the obtained data.FindingsThe findings revealed that BDAC positively and significantly influences GAC and GEO, positively impacting eco-innovation. The KS and GOA's moderation effect strengthens the relationship between GEO and eco-innovation. GAC partially mediates the relationship between BDAC and GEO.Practical implicationsThe study advises firms to invest heavily in developing technological aspects of BDAC as a dynamic strategic capability that facilitates tracking and anticipating the future behavior changes of customers, competitors and market demands. BDAC also allows firms to upgrade and reconfigure their dynamic capabilities by responding to managerial, operational and strategic necessities. BDAC is necessary to increase GAC's impact and help drive GEO's eco-business agenda. Notably, the study gave superior attention to KS and GOA as a backbone of GEO to improve eco-innovation economic and managerial outcomes.Originality/valueThe study highlights the necessity to upgrade and integrate technological aspects of BDAC within firms' GEO to enhance green practices. Significantly, green business practices changed quickly as customers' needs and eco-markets fluctuated; BDAC is the crucial dynamic capability fostering GAC and entrepreneurs' green mindset to deal with environmental challenges. To the best of the author’s knowledge, this study is to predict the potential effect of BDAC on both GAC and GEO. BDAC helps firms to develop GEO eco-business agenda and balance green growth with green issues.

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.

Promoting Strategic Flexibility and Business Performance through Organizational Ambidexterity

The purpose of this paper is to develop a comprehensive structural model to understand the outcomes of organizational ambidexterity (OA) within the manufacturing and service sector. It focuses on evaluating the effects of OA on business performance and strategic flexibility while also exploring the under-researched relationship between strategic flexibility and business performance. To accomplish this objective, an empirical survey was carried out among a sample of 370 Greek manufacturing and service firms. Exploratory and confirmatory factor analyses were utilized to extract and validate the latent constructs examined. Finally, the structural relationships among these latent constructs were determined using structural equation modeling (SEM). The study’s findings reveal the significant contributions of OA to both firm performance and strategic flexibility. Additionally, the results demonstrate the positive influence of strategic flexibility on business performance. This research sheds light on the multifaceted impacts of ambidexterity, offering valuable implications for managers, decision-makers, and practitioners. The outcomes underscore the importance of ambidexterity in various dimensions of business performance and highlight its role in fostering strategic flexibility. This study stands out by offering a holistic model that explicates the outcomes of OA within the manufacturing and service sector. It places particular emphasis on the interplay between business performance and strategic flexibility, an area that has received limited attention in prior research. By empirically examining these relationships and providing practical guidelines, the proposed model enriches our understanding of ambidexterity’s significance and supports further research in this domain within organizations.

Antecedents of organizational ambidexterity: an empirical investigation of foreign ventures in an emerging market

PurposeThe purpose of this paper is to examine the antecedents of organizational ambidexterity of foreign ventures in an emerging market. Organizational ambidexterity, the simultaneous pursuit of exploration and exploitation, represents a key innovation strategy. Yet, the driving factors of such innovation strategies for foreign ventures competing in emerging markets have been underresearched. In this study, unpacking the construct of organizational ambidexterity into two dimensions (i.e. the combined dimension [CD] and the balance dimension [BD]), the authors aim to investigate how firm-level and industry-level factors drive foreign ventures in pursuing exploration and exploitation and maximizing the benefits of both.Design/methodology/approachThis study adopts the hierarchical multiple regression approach using a sample of foreign ventures operating in high-tech manufacturing industries in China.FindingsThe authors find that the firm-level factor of strategic flexibility leads positively to the CD of organizational ambidexterity, whereas the industry-level factor of technological turbulence has a significantly positive impact on the BD.Originality/valueThis study provides important insights into the driving factors of organizational ambidexterity for foreign ventures competing in emerging markets.

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

PurposeInnovation 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/approachThis 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.FindingsBy 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/valueThis 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.

The Influence of Market Orientation and Entrepreneurial Orientation on Marketing Performance: Organizational Agility as a Mediator


 This study aims to determine the impact of market orientation and entrepreneurial orientation on marketing performance mediated by organizational ambidexterity. The unit analysis for this study is employees who work at Bina Insani University, located in Bekasi City, West Java Province. This research uses quantitative methods. The population of this study were 100 Bina Insani University employees. Total respondents are 100 respondents. Data were collected through questionnaires through the census method. Data were analysed using Partial Least Square. This study confirms that market orientation does not influence marketing performance significantly. However, it confirmed the direct impact of positive and significant entrepreneurial orientation on marketing performance. This study also confirms the role of organizational ambidexterity as a mediator in the relationship between entrepreneurial orientation and marketing performance but not in the relationship between market orientation and marketing performance. Thus, Bina Insani University needs to always improve the implementation of its entrepreneurial orientation and organizational ambidexterity to ensure the improvement of its marketing performance.

Understanding ESG scores and firm performance: Are high-performing firms E, S, and G-balanced?

What is the relationship among independent third-party rating agency weighted ESG scores, balanced weighted ESG scores, and firm performance? Research studies show that the relationship between rating agency ESG scores and firm performance is mixed and likely inconclusive. This is because rating agencies have the discretion to choose from among many comparable E, S, and G measures that are not the same in scope and measurement, leading to variations in component weights that can cause material differences in reported weighted average ESG scores. To overcome this variation, we propose an extension to organisational ambidexterity theory that incorporates ESG activities and use balanced E, S, and G weights to calculate ESG scores. Using a combination of quantitative and qualitative methodologies on a sample 562 U.S. firms in the Forbes 2000 ranking, we find balanced weighted ESG scores are associated with firm performance, and the greater the positive percent difference between rating agency ESG scores and balanced ESG scores the lower the firm performance. Rating agency weighting methodologies may unknowingly be encouraging firm greenwashing.

Is organizational ambidexterity always beneficial to family-managed SMEs? Evidence from China

Organizational ambidexterity is considered an essential strategy for firms to achieve sustainable competitive advantages, but it is unreasonable to expect all firms to equally profit from pursuing organizational ambidexterity, as this is a resource-intensive strategy. Using the resource-based view, we proposed and tested two internal boundary conditions that shape the impact of organizational ambidexterity on firm performance: family management and formalization. The results of our three-way interaction analysis of data from 324 Chinese SMEs show that a higher level of family management weakens the positive impact of organizational ambidexterity on firm performance, and this negative moderating effect is further strengthened by the degree of a firm’s formalization. These findings help us better understand why resource-constrained firms are more likely to struggle when pursuing organizational ambidexterity.

Organisational resilience, ambidexterity and performance: the roles of information technology competencies, digital transformation policies and paradoxical leadership

PurposeIn the current highly volatile and uncertain economic environment, recovery strategies that emphasise attributes and skills are essential for an enterprise to recover and adapt to disruptions. Based on the resource-based view (RBV), this study aims to understand how organisational resilience functions and its outcomes. Specifically, this study establishes links between organisational resilience and internal capabilities in information technology (IT) applications, exploitation-exploration activities and organisational leadership, which are represented by IT competencies, organisational ambidexterity and paradoxical leadership, respectively. The study also analyses the role of government digital transformation policies after the COVID-19 pandemic as an external resource.Design/methodology/approachThis study provides empirical evidence of the dynamic relationships between organisational resilience, ambidexterity and performance under the interactions IT competencies, digital transformation policies and paradoxical leadership by using data collected from 336 small- and medium-sized enterprises (SMEs) in Vietnam and the partial least squares-structural equation modelling technique.FindingsIT competencies and organisational ambidexterity strengthen organisational resilience, reduce missed opportunities and increase organisations’ responsiveness to market volatility. Increasing organisational ambidexterity and resilience enhances the business performance of SMEs. Paradoxical leadership favours organisational ambidexterity and resilience and their outcomes. Digital transformation policies from the government can support SMEs’ IT competencies and resilience.Originality/valueTo the best of the authors’ knowledge, this study based on the RBV is the first to show how integrating external resources with dynamic capabilities such as organisational ambidexterity and resilience can help SMEs build and maintain a sustainable competitive advantage in highly uncertain environments. This research emphasises the vital role of organisational resilience in improvising changes in working processes in response to unexpected events and the importance of a strategy for developing the capability to anticipate a wide variety of situations and seize opportunities quickly.

Organizational Ambidexterity and Performance: Examining the Moderating Role of Unit Differentiation

Organizational Ambidexterity and Performance: Examining the Moderating Role of Unit Differentiation