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The Effect of Ambidextrous Strategic Leadership on Creating Shared Value

Author

Listed:
  • Kristian Pultz Schlosser
  • Aivars Spilbergs
  • Tatjana Volkova

Abstract

Purpose: The main aim of the article is to provide an overview of how the strategic leadership characteristic ambidexterity, impacts the creation of shared value in companies. Design/Methodology/Approach: This study builds upon a previous literature content analysis and relies on primary data collection and comprehensive analysis of the collected data. The structural equation modelling (SEM) technique was applied to examine the two constructs such as exploration and exploitation, as characteristics of ambidextrous leadership and its effect on business and social results. Findings: The analysis revealed that ambidexterity plays a significant role in creating shared value for companies. The results show that ambidextrous strategic leaders are more effective in creating social and business results simultaneously compared to those who do not possess this characteristic. The findings suggest a positive relationship between ambidexterity and creating shared value, meaning that the more ambidextrous the leader, the higher the likelihood of creating shared value. Furthermore, the study shows that leaders tend to be more optimistic about future opportunities and trends, which indicates that they focus more on exploring new opportunities rather than exploiting existing resources. However, the study also revealed that there is a more pessimistic view when it comes to exploiting current resources to their full potential. Practical Implications/limitations: In this paper, the authors recognise the limitations in the application of the construct of ambidextrous strategic leadership. Although strategic leadership has several characteristics and constructs, this research focuses on ambidexterity and the two related its sub-constructs of exploiting and exploring. Moreover, the sample size of companies analysed in the study may not represent all types of organisations as the focus has been on medium and large sized companies. Originality/value: The research results contribute to the further understanding of the impact of ambidextrous strategic leadership on improving organisational performance, particularly on the creation of social and business results by measuring each ambidextrous strategic leadership constructs such as exploitation and exploration impact on social and business results separately.

Suggested Citation

  • Kristian Pultz Schlosser & Aivars Spilbergs & Tatjana Volkova, 2023. "The Effect of Ambidextrous Strategic Leadership on Creating Shared Value," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 22-43.
    • Handle: RePEc:ers:ijebaa:v:xi:y:2023:i:2:p:22-43
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    References listed on IDEAS

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    1. Mavroudi, Eva & Kesidou, Effie & Pandza, Krsto, 2020. "Shifting back and forth: How does the temporal cycling between exploratory and exploitative R&D influence firm performance?," Journal of Business Research, Elsevier, vol. 110(C), pages 386-396.
    2. Michael E. Porter & Mark R. Kramer, 2019. "Creating Shared Value," Springer Books, in: Gilbert G. Lenssen & N. Craig Smith (ed.), Managing Sustainable Business, chapter 16, pages 323-346, Springer.
    3. Esra'a M. Alamayreh & Rateb J. Sweis & Bader Y. Obeidat, 2019. "The relationship among innovation, organisational ambidexterity and organisational performance," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 19(4), pages 554-579.
    4. Gratiela Georgiana Noja & Eleftherios Thalassinos & Mirela Cristea & Irina Maria Grecu, 2021. "The Interplay between Board Characteristics, Financial Performance, and Risk Management Disclosure in the Financial Services Sector: New Empirical Evidence from Europe," JRFM, MDPI, vol. 14(2), pages 1-20, February.
    5. Cenamor, Javier & Parida, Vinit & Wincent, Joakim, 2019. "How entrepreneurial SMEs compete through digital platforms: The roles of digital platform capability, network capability and ambidexterity," Journal of Business Research, Elsevier, vol. 100(C), pages 196-206.
    6. Timothy J. Quigley & Scott D. Graffin, 2017. "Reaffirming the CEO effect is significant and much larger than chance: A comment on Fitza (2014)," Strategic Management Journal, Wiley Blackwell, vol. 38(3), pages 793-801, March.
    7. Rodrigo Franklin Frogeri & Pedro dos Santos Portugal Júnior & Fabrício Pelloso Piurcosky & Victor Sanacato & Julia López de Calle & Stefano Barra Gazzola & Felipe Flausino de Oliveira, 2022. "Dynamic Ambidexterity: Proposal of a Theoretical and Hypothetical Model," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 26(6), pages 210088-2100.
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    More about this item

    Keywords

    Ambidexterity; Strategic leadership; Shared value; Data analytics; Resources.;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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