Organizational Ambidexterity and Performance: Examining the Moderating Role of Unit Differentiation
Journal
Academy of Management Proceedings
Type
conference paper
Date Issued
2023
Author(s)
Abstract
To be successful in the long term, companies must meet current requirements (exploit) while being prepared for future demands (explore) – a dynamic capability referred to as ambidexterity. Research investigating the microfoundations of organizational ambidexterity has identified the crucial role of individual exploitative and explorative behaviors of employees in achieving ambidexterity on the organizational level. But what happens if employees in business units work with (very) different foci? This study provides a new perspective on the impact of high differentiation between business units in organizations focused on exploratory and/or exploitative goals. Drawing from paradox and social identity theory, I argue for an effect of organizational ambidexterity on firm performance via increased levels of positive affective tone. I subsequently theorize that this positive effect might be switched off by strong ambidextrous unit differentiation. This moderated mediation model is tested and supported by multiple regression analyses in a multisource data set containing 17,429 employees from 92 companies. These results are discussed and contribute to the literature on organizational ambidexterity.
Language
English
Contact Email Address
leonbarton@web.de