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CEO regulatory focus as the microfoundation of organizational ambidexterity: A configurational approach

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  • Huang, Shuangfa
  • Battisti, Martina
  • Pickernell, David

Abstract

This study contributes to research on how microfoundations, in the form of CEO characteristics, influence ambidexterity (the capability to engage simultaneously in both exploration and exploitation) in SMEs. Specifically, it aims to identify which combinations of CEO regulatory foci (promotion and prevention focus) explain ambidexterity in SMEs and how these combinations themselves depend on situational conditions, namely market turbulence as perceived by the CEO and CEO tenure. Using data from 110 UK SMEs and fuzzy-set qualitative comparative analysis, we explore the combinations of CEO regulatory focus and situational conditions that lead to the presence and absence of ambidexterity. The findings contribute to a better understanding of SME ambidexterity and expand regulatory focus theory by showing that one of the regulatory foci tends to play a dominant role in shaping ambidexterity. The findings also reveal that situational conditions may compensate for the lack of promotion or prevention focus to produce ambidexterity.

Suggested Citation

  • Huang, Shuangfa & Battisti, Martina & Pickernell, David, 2021. "CEO regulatory focus as the microfoundation of organizational ambidexterity: A configurational approach," Journal of Business Research, Elsevier, vol. 125(C), pages 26-38.
    • Handle: RePEc:eee:jbrese:v:125:y:2021:i:c:p:26-38
    DOI: 10.1016/j.jbusres.2020.12.004
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    Cited by:

    1. Christine Weigel & Klaus Derfuss & Martin R. W. Hiebl, 2023. "Financial managers and organizational ambidexterity in the German Mittelstand: the moderating role of strategy involvement," Review of Managerial Science, Springer, vol. 17(2), pages 569-605, February.
    2. Palmié, Maximilian & Rüegger, Stephanie & Parida, Vinit, 2023. "Microfoundations in the strategic management of technology and innovation: Definitions, systematic literature review, integrative framework, and research agenda," Journal of Business Research, Elsevier, vol. 154(C).
    3. White, Joshua V. & Borgholthaus, Cameron J., 2022. "Who’s in charge here? A bibliometric analysis of upper echelons research," Journal of Business Research, Elsevier, vol. 139(C), pages 1012-1025.
    4. Rawan Atwa & Safaa Alsmadi & Buthiena Kharabsheh & Ruwaidah Haddad, 2023. "Do CEO Attributes Spur Conservatism?," IJFS, MDPI, vol. 11(1), pages 1-15, March.
    5. Biru, Ashenafi & Filatotchev, Igor & Bruton, Garry & Gilbert, David, 2023. "CEOs’ regulatory focus and firm internationalization: The moderating effects of CEO overconfidence, narcissism and career horizon," International Business Review, Elsevier, vol. 32(3).
    6. Li, Xiaoxuan & Wang, Yue & Yang, Miles M. & Tang, Yanzhao, 2022. "Does owner CEO narcissism promote exporting SMEs' market spreading strategy? Joint effects of asset-specific investments and firm exporting experience," Journal of International Management, Elsevier, vol. 28(3).
    7. Krause-Söhner, Elena & Roth, Angela & Schaller, Christian, 2022. "Multifaceted and even contradictory? Impulses to push efficiency and innovativeness and the dynamic role of ambiguity in context of a German university," Journal of Business Research, Elsevier, vol. 147(C), pages 258-277.
    8. Huang, Shuangfa & Battisti, Martina & Pickernell, David, 2023. "The roles of innovation strategy and founding team diversity in new venture growth," Journal of Business Research, Elsevier, vol. 158(C).

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