IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i10p7937-d1145455.html
   My bibliography  Save this article

Investigating the Serially Mediating Mechanisms of Organizational Ambidexterity and the Circular Economy in the Relationship between Ambidextrous Leadership and Sustainability Performance

Author

Listed:
  • Anastasia A. Katou

    (School of Business Administration, University of Macedonia, 546 36 Thessaloniki, Greece)

  • Dimitrios Kafetzopoulos

    (School of Business Administration, University of Macedonia, 546 36 Thessaloniki, Greece)

  • Anastasia Vayona

    (Department of Life & Environmental Science, Bournemouth University, Poole BH12 5BB, UK
    Circular Economy Foundation, 1040 Brussels, Belgium)

Abstract

In this study, based on a resource-based view, we investigate the influence of ambidextrous leadership (reflected in transformational and transactional leadership styles) on sustainability performance (reflected in economic, environmental, and social performance) through the serially mediating mechanisms of organizational ambidexterity (reflected in explorer and exploiter attributes) and the circular economy (reflected in fields of action). By applying structural equation modelling analyses to survey data collected from private and public Greek organizations, which operate in manufacturing, services, and trade sectors, under an externally dynamic environmental context, we found that (a) organizational ambidexterity and the circular economy fields of action positively mediate the relationship between ambidextrous leadership and sustainability performance and (b) the mechanism originating from transformational leadership has a higher impact on sustainability performance compared to the mechanism that originates from transactional leadership. Accordingly, this study addresses the aspect of the special issue that refers to modern approaches to management and leadership for sustainable business performance research and makes several theoretical and practical implications.

Suggested Citation

  • Anastasia A. Katou & Dimitrios Kafetzopoulos & Anastasia Vayona, 2023. "Investigating the Serially Mediating Mechanisms of Organizational Ambidexterity and the Circular Economy in the Relationship between Ambidextrous Leadership and Sustainability Performance," Sustainability, MDPI, vol. 15(10), pages 1-18, May.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:10:p:7937-:d:1145455
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/10/7937/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/10/7937/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Walter R. Stahel, 2016. "The circular economy," Nature, Nature, vol. 531(7595), pages 435-438, March.
    2. Prasanta Kumar Dey & Chrisovaladis Malesios & Debashree De & Pawan Budhwar & Soumyadeb Chowdhury & Walid Cheffi, 2020. "Circular economy to enhance sustainability of small and medium‐sized enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2145-2169, September.
    3. Justin J. P. Jansen & Frans A. J. Van Den Bosch & Henk W. Volberda, 2006. "Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators," Management Science, INFORMS, vol. 52(11), pages 1661-1674, November.
    4. Michael Yao-Ping Peng & Ku-Ho Lin, 2019. "Impact of Ambidexterity and Environmental Dynamism on Dynamic Capability Development Trade-Offs," Sustainability, MDPI, vol. 11(8), pages 1-18, April.
    5. Dey, Prasanta Kumar & Malesios, Chrysovalantis & Chowdhury, Soumyadeb & Saha, Krishnendu & Budhwar, Pawan & De, Debashree, 2022. "Adoption of circular economy practices in small and medium-sized enterprises: Evidence from Europe," International Journal of Production Economics, Elsevier, vol. 248(C).
    6. Junwei Zheng & Guangdong Wu & Hongtao Xie & Hui Xu, 2017. "Ambidextrous Leadership and Sustainability-Based Project Performance: The Role of Project Culture," Sustainability, MDPI, vol. 9(12), pages 1-24, December.
    7. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    8. Katou, Anastasia A. & Budhwar, Pawan S. & Patel, Charmi, 2021. "A trilogy of organizational ambidexterity: Leader’s social intelligence, employee work engagement and environmental changes," Journal of Business Research, Elsevier, vol. 128(C), pages 688-700.
    9. Kirchherr, Julian & Reike, Denise & Hekkert, Marko, 2017. "Conceptualizing the circular economy: An analysis of 114 definitions," Resources, Conservation & Recycling, Elsevier, vol. 127(C), pages 221-232.
    10. Qing Cao & Eric Gedajlovic & Hongping Zhang, 2009. "Unpacking Organizational Ambidexterity: Dimensions, Contingencies, and Synergistic Effects," Organization Science, INFORMS, vol. 20(4), pages 781-796, August.
    11. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    12. Raphaëlle Stewart & Monia Niero, 2018. "Circular economy in corporate sustainability strategies: A review of corporate sustainability reports in the fast‐moving consumer goods sector," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 1005-1022, November.
    13. Florian Hofmann & Melanie Jaeger‐Erben, 2020. "Organizational transition management of circular business model innovations," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2770-2788, September.
    14. Zi-Lin He & Poh-Kam Wong, 2004. "Exploration vs. Exploitation: An Empirical Test of the Ambidexterity Hypothesis," Organization Science, INFORMS, vol. 15(4), pages 481-494, August.
    15. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    16. Tally Katz‐Gerro & Jordi López Sintas, 2019. "Mapping circular economy activities in the European Union: Patterns of implementation and their correlates in small and medium‐sized enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 28(4), pages 485-496, May.
    17. Omar Alhawari & Usama Awan & M. Khurrum S. Bhutta & M. Ali Ülkü, 2021. "Insights from Circular Economy Literature: A Review of Extant Definitions and Unravelling Paths to Future Research," Sustainability, MDPI, vol. 13(2), pages 1-22, January.
    18. Ilija Moric & Jelena Šaković Jovanović & Rajka Đoković & Sanja Peković & Đurđica Perović, 2020. "The Effect of Phases of the Adoption of the Circular Economy on Firm Performance: Evidence from 28 EU Countries," Sustainability, MDPI, vol. 12(6), pages 1-12, March.
    19. Prasanta Kumar Dey & Chrisovalantis Malesios & Debashree De & Soumyadeb Chowdhury & Fouad Ben Abdelaziz, 2019. "Could lean practices and process innovation enhance supply chain sustainability of small and medium‐sized enterprises?," Business Strategy and the Environment, Wiley Blackwell, vol. 28(4), pages 582-598, May.
    20. Kassotaki, Olga, 2019. "Explaining ambidextrous leadership in the aerospace and defense organizations," European Management Journal, Elsevier, vol. 37(5), pages 552-563.
    21. Gökhan Akıncı & Lutfihak Alpkan & Bora Yıldız & Gaye Karacay, 2022. "The Link between Ambidextrous Leadership and Innovative Work Behavior in a Military Organization: The Moderating Role of Climate for Innovation," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olga Kassotaki, 2022. "Review of Organizational Ambidexterity Research," SAGE Open, , vol. 12(1), pages 21582440221, March.
    2. Choo Yeon Kim & Myung Sub Lim & Jae Wook Yoo, 2019. "Ambidexterity in External Knowledge Search Strategies and Innovation Performance: Mediating Role of Balanced Innovation and Moderating Role of Absorptive Capacity," Sustainability, MDPI, vol. 11(18), pages 1-23, September.
    3. 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.
    4. Atif Açıkgöz & Irem Demirkan & Gary P. Latham & Cemil Kuzey, 2021. "The Relationship Between Unlearning and Innovation Ambidexterity with the Performance of New Product Development Teams," Group Decision and Negotiation, Springer, vol. 30(4), pages 945-982, August.
    5. Marina Estrada-Cruz & Noelia Rodriguez-Hernández & Antonio J. Verdú-Jover & Jose Maria Gómez-Gras, 2022. "The effect of competitive intensity on the relationship between strategic entrepreneurship and organizational results," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 1-24, March.
    6. Jorge Ferreira & Sofia Cardim & Arnaldo Coelho, 2021. "Dynamic Capabilities and Mediating Effects of Innovation on the Competitive Advantage and Firm’s Performance: the Moderating Role of Organizational Learning Capability," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 620-644, June.
    7. Jingoo Kang & Sang‐Joon Kim, 2020. "Performance implications of incremental transition and discontinuous jump between exploration and exploitation," Strategic Management Journal, Wiley Blackwell, vol. 41(6), pages 1083-1111, June.
    8. Marina Estrada-Cruz & Noelia Rodriguez-Hernández & Antonio J. Verdú-Jover & Jose Maria Gómez-Gras, 0. "The effect of competitive intensity on the relationship between strategic entrepreneurship and organizational results," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-24.
    9. Sebastian Raisch & Julian Birkinshaw & Gilbert Probst & Michael L. Tushman, 2009. "Organizational Ambidexterity: Balancing Exploitation and Exploration for Sustained Performance," Organization Science, INFORMS, vol. 20(4), pages 685-695, August.
    10. Ferreira, Jorge & Coelho, Arnaldo & Moutinho, Luiz, 2020. "Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation," Technovation, Elsevier, vol. 92.
    11. Lin, H.E., 2010. "Effects of strategy, context and antecedents and capabilities on the outcomes of ambidexterity : A multiple country case study of the US, China and Taiwan," Other publications TiSEM c0eab7d6-d6c7-4b55-9822-1, Tilburg University, School of Economics and Management.
    12. Johan Arekrans & Sofia Ritzén & Rafael Laurenti, 2023. "The role of radical innovation in circular strategy deployment," Business Strategy and the Environment, Wiley Blackwell, vol. 32(3), pages 1085-1105, March.
    13. Sabyasachi Sinha, 2015. "The Exploration–Exploitation Dilemma: A Review in the Context of Managing Growth of New Ventures," Vikalpa: The Journal for Decision Makers, , vol. 40(3), pages 313-323, September.
    14. Yuk, Hyeyeon & Garrett, Tony C., 2023. "Does customer participation moderate the effects of innovation on cost-based financial performance? An examination of different forms of customer participation," Journal of Business Research, Elsevier, vol. 156(C).
    15. Al-Atwi, Amer Ali & Amankwah-Amoah, Joseph & Khan, Zaheer, 2021. "Micro-foundations of organizational design and sustainability: The mediating role of learning ambidexterity," International Business Review, Elsevier, vol. 30(1).
    16. Vinit Parida & Tom Lahti & Joakim Wincent, 2016. "Exploration and exploitation and firm performance variability: a study of ambidexterity in entrepreneurial firms," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 1147-1164, December.
    17. Justin J. P. Jansen & Michiel P. Tempelaar & Frans A. J. van den Bosch & Henk W. Volberda, 2009. "Structural Differentiation and Ambidexterity: The Mediating Role of Integration Mechanisms," Organization Science, INFORMS, vol. 20(4), pages 797-811, August.
    18. Jatinder S. Sidhu & Harry R. Commandeur & Henk W. Volberda, 2007. "The Multifaceted Nature of Exploration and Exploitation: Value of Supply, Demand, and Spatial Search for Innovation," Organization Science, INFORMS, vol. 18(1), pages 20-38, February.
    19. Sébastien Brion & Caroline Mothe & Maréva Sabatier, 2010. "The Impact Of Organisational Context And Competences On Innovation Ambidexterity," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 14(02), pages 151-178.
    20. Gedajlovic, Eric & Cao, Qing & Zhang, Hongping, 2012. "Corporate shareholdings and organizational ambidexterity in high-tech SMEs: Evidence from a transitional economy," Journal of Business Venturing, Elsevier, vol. 27(6), pages 652-665.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:10:p:7937-:d:1145455. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.