Hybrid Strategy and Firm Performance: The Moderating Role of Individual and Technological Ambidexterity
AbstractIt is discussed whether hybrid strategies are beneficial or detrimental to a firm’s performance, because hybrid strategies lead to organizational tensions that arise from the simultaneous pursuit of distinct strategic activities. However, existing studies on the relationship between hybrid strategy and firm performance have largely neglected the role of the organizational architecture. This study tests the hypothesis that an ambidextrous organizational architecture positively moderates the relationship between a hybrid strategy and firm performance. Particularly, the roles of specific organization structures and HRM practices (individual ambidexterity) and information and communication technologies (technological ambidexterity) are assessed. Further, a hybrid strategy’s performance impact is defined in two distinct ways and measured relative to three different comparison groups, that is, the entire sample, no-emphasis strategies, and pure strategies. A novel multi-source dataset on German and Polish manufacturing firms is constructed from three independent sources, including a dataset on objective firm performance indicators. Evidence is found that a hybrid strategy positively impacts firm performance in the presence of organizational ambidexterity, but negatively impacts firm performance in the absence of organizational ambidexterity. These findings are robust across two types of organizational ambidexterity, three different comparison groups, and further robustness tests.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Munich, Munich School of Management in its series Discussion Papers in Business Administration with number 11504.
Date of creation: 2010
Date of revision:
exploration; exploitation; ambidexterity; hybrid strategy; organizational architecture; firm performance;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-05-22 (All new papers)
- NEP-CSE-2010-05-22 (Economics of Strategic Management)
- NEP-SBM-2010-05-22 (Small Business Management)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Philipp Beltz).
If references are entirely missing, you can add them using this form.