Avoiding the Downturn? How Ambidexterity and Public Policy influence Firm Performance Stability during Economic Crisis
Type
conference paper
Date Issued
2017
Author(s)
Abstract
A key question confronting managers during economic crisis is how their firms can remain stable while others experience downturns. To address this question, the present study uses non-linear modeling to examine how firm-internal responses (i.e., ambidexterity) and external public policy responses (i.e., demand-pull policies) affect the stability of firms’ performance in a recessionary economic context. Using survey data from German renewable energy firms and archival measures of firm performance stability, we find that ambidexterity has a U-shaped effect on performance stability. Conversely, demand-pull policies do not seem to have a significant effect on performance stability on their own. However, we find that firms with low levels of ambidexterity do benefit from demand-pull policies. These findings allow several contributions to the ambidexterity and public policy literatures and to the broader question of how firms and policy makers can tackle economic crisis.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Responsible Corporate Competitiveness (RoCC)
Event Title
Academy of Management Annual Meeting (AOM)
Event Location
Atlanta, Georgia, USA
Event Date
04.-08.08.2017
Subject(s)
Division(s)
Eprints ID
252675