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Ambidextrous culture, contextual ambidexterity and new product innovations: The role of organizational slack and environmental factors

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  • Sher Jahan Khan
  • Ajaz Akbar Mir

Abstract

Contextual ambidexterity, defined as the simultaneous pursuit of alignment and adaptability at business unit, is linked to several organizational outcomes including improved performance and innovation outcomes. Extant research posits ambidextrous organizational culture as an important enabler to contextual ambidexterity but suffers from a lack of a well‐meaning scale for the same. In addition, there is very little understanding as to how tasking and facilitating environment can be on firms' endeavour for contextual ambidexterity and the outcomes thereof. Therefore, the current piece of research has twin objectives using two separate studies. First, to develop a scale for ambidextrous organizational culture construct and second, to analyse the role played by the external forces (munificence and dynamism) and internal slack resources on the relationships between ambidextrous organizational culture and contextual ambidexterity and between contextual ambidexterity and new product innovation outcomes through an empirical investigation in India. Using structural equation modelling on data from 414 respondents, we found environmental munificence to strengthen the relationships between ambidextrous organizational culture and contextual ambidexterity and between contextual ambidexterity and new product innovation outcomes. On the other hand, environmental dynamism had a dampening impact on these relationships. Our findings also suggest that for low slack organizations, dynamic and unmunificent environments magnified the negative impact on an organisation's ambidexterity efforts and new product innovation outcomes.

Suggested Citation

  • Sher Jahan Khan & Ajaz Akbar Mir, 2019. "Ambidextrous culture, contextual ambidexterity and new product innovations: The role of organizational slack and environmental factors," Business Strategy and the Environment, Wiley Blackwell, vol. 28(4), pages 652-663, May.
    • Handle: RePEc:bla:bstrat:v:28:y:2019:i:4:p:652-663
    DOI: 10.1002/bse.2287
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    5. José Andrade & Mário Franco & Luis Mendes, 2021. "Technological capacity and organisational ambidexterity: the moderating role of environmental dynamism on Portuguese technological SMEs," Review of Managerial Science, Springer, vol. 15(7), pages 2111-2136, October.
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