IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v11y2020i2d10.1007_s13132-018-0560-y.html
   My bibliography  Save this article

Organizational Ambidexterity and Performance: Assessment Approaches and Empirical Evidence

Author

Listed:
  • Yury Dranev

    (National Research University Higher School of Economics)

  • Alisa Izosimova

    (National Research University Higher School of Economics)

  • Dirk Meissner

    (National Research University Higher School of Economics)

Abstract

Three approaches are developed for assessment of different types of organizational ambidexterity proposed in the relevant literature. The new model for measurement of organizational ambidexterity using data envelopment analysis (DEA) is introduced. The DEA score based on innovation activity inputs and two different performance outputs acts as a proxy for organizational ambidexterity. Sustainability goals and product ambidexterity are also analyzed as the key characteristics of ambidextrous behavior. The introduced three approaches are tested for their aptness to complement each other as well as to support a strategic decision-making. Empirical examples from energy and pharma sectors associate organizational ambidexterity with firms’ performance. We measured the organizational ambidexterity of energy and pharma companies by (1) pursuing long-term versus short-term organizational performance measured as a DEA two-output efficiency score; (2) the share of disruptive products in a company’s activities assessed through the proportion of R&D expenditure or sales; and (3) sustainability versus financial performance of the company, where the Green ranking and participation in innovative financing programs were used as proxies for sustainable development. Positive relation between performance and organizational ambidexterity for energy sector are discovered. At the same time, orientation towards sustainability disrupts performance of pharmaceutical companies. Results of the OA impact on performance are highly industry-sensitive and depend on the methods used in empirical assessment. Our findings suggest that the scarcity of data sources make all three approaches complementary and mainly functional for strategic decision-making.

Suggested Citation

  • Yury Dranev & Alisa Izosimova & Dirk Meissner, 2020. "Organizational Ambidexterity and Performance: Assessment Approaches and Empirical Evidence," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(2), pages 676-691, June.
    • Handle: RePEc:spr:jknowl:v:11:y:2020:i:2:d:10.1007_s13132-018-0560-y
    DOI: 10.1007/s13132-018-0560-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-018-0560-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13132-018-0560-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    2. Antoncic, Bostjan & Hisrich, Robert D., 2001. "Intrapreneurship: Construct refinement and cross-cultural validation," Journal of Business Venturing, Elsevier, vol. 16(5), pages 495-527, September.
    3. Chiraz Feki & Sirine Mnif, 2016. "Entrepreneurship, Technological Innovation, and Economic Growth: Empirical Analysis of Panel Data," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 7(4), pages 984-999, December.
    4. Glenn B. Voss & Zannie Giraud Voss, 2013. "Strategic Ambidexterity in Small and Medium-Sized Enterprises: Implementing Exploration and Exploitation in Product and Market Domains," Organization Science, INFORMS, vol. 24(5), pages 1459-1477, October.
    5. Zvi Griliches, 1984. "Market Value, R&D, and Patents," NBER Chapters, in: R&D, Patents, and Productivity, pages 249-252, National Bureau of Economic Research, Inc.
    6. 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.
    7. Hagedoorn, John & Cloodt, Myriam, 2003. "Measuring innovative performance: is there an advantage in using multiple indicators?," Research Policy, Elsevier, vol. 32(8), pages 1365-1379, September.
    8. United Nations UN, 2015. "Transforming our World: the 2030 Agenda for Sustainable Development," Working Papers id:7559, eSocialSciences.
    9. Murphy, Gregory B. & Trailer, Jeff W. & Hill, Robert C., 1996. "Measuring performance in entrepreneurship research," Journal of Business Research, Elsevier, vol. 36(1), pages 15-23, May.
    10. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    11. Elias Carayannis & Ruslan Rakhmatullin, 2014. "The Quadruple/Quintuple Innovation Helixes and Smart Specialisation Strategies for Sustainable and Inclusive Growth in Europe and Beyond," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 5(2), pages 212-239, June.
    12. Dovev Lavie & Jingoo Kang & Lori Rosenkopf, 2011. "Balance Within and Across Domains: The Performance Implications of Exploration and Exploitation in Alliances," Organization Science, INFORMS, vol. 22(6), pages 1517-1538, December.
    13. Michael Lubatkin & Zeki Simsek & Yan Ling & John F. Veiga, 2006. "Ambidexterity and Performance in Small-to Medium-Sized Firms : The Pivotal Role of Top Management Team Behavioral Integration," Post-Print hal-02311781, HAL.
    14. Cook, Wade D. & Seiford, Larry M., 2009. "Data envelopment analysis (DEA) - Thirty years on," European Journal of Operational Research, Elsevier, vol. 192(1), pages 1-17, January.
    15. Hoff, Ayoe, 2007. "Second stage DEA: Comparison of approaches for modelling the DEA score," European Journal of Operational Research, Elsevier, vol. 181(1), pages 425-435, August.
    16. Zeki Simsek, 2009. "Organizational Ambidexterity: Towards a Multilevel Understanding," Journal of Management Studies, Wiley Blackwell, vol. 46(4), pages 597-624, June.
    17. 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.
    18. Iversen, Jens & Jørgensen, Rasmus & Malchow-Møller, Nikolaj, 2007. "Defining and Measuring Entrepreneurship," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 4(1), pages 1-63, September.
    19. Yu-Shan Chen & Ching-Hsun Chang & Yu-Hsien Lin, 2014. "The Determinants of Green Radical and Incremental Innovation Performance: Green Shared Vision, Green Absorptive Capacity, and Green Organizational Ambidexterity," Sustainability, MDPI, vol. 6(11), pages 1-20, November.
    20. Narin, Francis & Noma, Elliot & Perry, Ross, 1987. "Patents as indicators of corporate technological strength," Research Policy, Elsevier, vol. 16(2-4), pages 143-155, August.
    21. Juha Uotila & Markku Maula & Thomas Keil & Shaker A. Zahra, 2009. "Exploration, exploitation, and financial performance: analysis of S&P 500 corporations," Strategic Management Journal, Wiley Blackwell, vol. 30(2), pages 221-231, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yu‐Shan Chen & Xin Yan, 2022. "The small and medium enterprises' green human resource management and green transformational leadership: A sustainable moderated‐mediation practice," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1341-1356, September.
    2. Concepción Rubio‐Picón & Francisco Velasco‐Morente & Encarnación Ramos‐Hidalgo & María A. Agustí, 2023. "The effect of innovation efficiency management on performance: Differences according to organizational size," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 336-358, January.
    3. Ni Wayan Rustiarini & Desak Ayu Sriary Bhegawati & Ni Putu Yuria Mendra & Nyoman Utari Vipriyanti, 2023. "Resource Orchestration in Enhancing Green Innovation and Environmental Performance in SME," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 251-259, September.
    4. Maria Giuffrida & Riccardo Mangiaracina, 2020. "Green Practices for Global Supply Chains in Diverse Industrial, Geographical, and Technological Settings: A Literature Review and Research Agenda," Sustainability, MDPI, vol. 12(23), pages 1-18, December.
    5. Mohamed M. Dhiaf & Khakan Najaf & Hazem Marashdeh & Osama F. Atayah & Guilherme F. Frederico, 2022. "The role of project’s initiatives focused on the reduction of environmental footprints during COVID-19: evidence from the United States firms," Operations Management Research, Springer, vol. 15(1), pages 413-427, June.
    6. Yaser Mohammad Al-Shyyab & Hani J. Irtaimeh, 2023. "Nexus of Authentic Leadership and Smart Organization Through Strategic Ambidexterity and Improvisational Capabilities: A Conceptual Model," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 13(1), pages 1-17, July.
    7. Muralidharan Loganathan & M. H. Bala Subrahmanya, 2023. "Efficiency of Entrepreneurial Universities in India: A Data Envelopment Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1120-1144, June.

    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. Úbeda-García, Mercedes & Claver-Cortés, Enrique & Marco-Lajara, Bartolomé & Zaragoza-Sáez, Patrocinio, 2020. "Toward a dynamic construction of organizational ambidexterity: Exploring the synergies between structural differentiation, organizational context, and interorganizational relations," Journal of Business Research, Elsevier, vol. 112(C), pages 363-372.
    2. Manuel Guisado-González & Jennifer González-Blanco & José Luis Coca-Pérez, 2019. "Exploration, exploitation, and firm age in alliance portfolios," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(4), pages 387-406, December.
    3. Solís-Molina, Miguel & Hernández-Espallardo, Miguel & Rodríguez-Orejuela, Augusto, 2018. "Performance implications of organizational ambidexterity versus specialization in exploitation or exploration: The role of absorptive capacity," Journal of Business Research, Elsevier, vol. 91(C), pages 181-194.
    4. 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.
    5. 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.
    6. Armin Anzenbacher & Marcus Wagner, 2020. "The role of exploration and exploitation for innovation success: effects of business models on organizational ambidexterity in the semiconductor industry," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 571-594, June.
    7. Belderbos, Rene & Faems, Dries & Leten, Bart & Van Looy, Bart, 2009. "Technological activities and their impact on the financial performance of the firm: Exploitation and exploration within and between firms," MERIT Working Papers 2009-067, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. Partanen, Jukka & Kohtamäki, Marko & Patel, Pankaj C. & Parida, Vinit, 2020. "Supply chain ambidexterity and manufacturing SME performance: The moderating roles of network capability and strategic information flow," International Journal of Production Economics, Elsevier, vol. 221(C).
    9. 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.
    10. David B. Audretsch & Maribel Guerrero, 2023. "Is ambidexterity the missing link between entrepreneurship, management, and innovation?," The Journal of Technology Transfer, Springer, vol. 48(6), pages 1891-1918, December.
    11. Angeloantonio Russo & Rosamartina Schena, 2021. "Ambidexterity in the context of SME alliances: Does sustainability have a role?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 606-615, March.
    12. Jürgen Weibler & Tobias Keller, 2011. "Ambidextrie in Abhängigkeit von Führungsverantwortung und Marktwahrnehmung: Eine empirische Analyse des individuellen Arbeitsverhaltens in Unternehmen," Schmalenbach Journal of Business Research, Springer, vol. 63(2), pages 155-188, March.
    13. Veider, Viktoria & Matzler, Kurt, 2016. "The ability and willingness of family-controlled firms to arrive at organizational ambidexterity," Journal of Family Business Strategy, Elsevier, vol. 7(2), pages 105-116.
    14. Vahlne, Jan-Erik & Jonsson, Anna, 2017. "Ambidexterity as a dynamic capability in the globalization of the multinational business enterprise (MBE): Case studies of AB Volvo and IKEA," International Business Review, Elsevier, vol. 26(1), pages 57-70.
    15. 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.
    16. Olga Kassotaki, 2022. "Review of Organizational Ambidexterity Research," SAGE Open, , vol. 12(1), pages 21582440221, March.
    17. Mingfeng Tang & Peng Xu & Patrick Llerena & Asghar Afshar Jahanshahi, 2019. "The Impact of the Openness of Firms’ External Search Strategies on Exploratory Innovation and Exploitative Innovation," Sustainability, MDPI, vol. 11(18), pages 1-20, September.
    18. Danny Soetanto & Sarah L. Jack, 2018. "Slack resources, exploratory and exploitative innovation and the performance of small technology-based firms at incubators," The Journal of Technology Transfer, Springer, vol. 43(5), pages 1213-1231, October.
    19. Jiewei Zu & Jianan Wang & Jun Ma, 2022. "Ambidexterity in a Rapidly Changing Environment of China: Top Management Team Decision Making and Sustained Performance," Sustainability, MDPI, vol. 14(7), pages 1-20, March.
    20. Hansen, Eric & Nybakk, Erlend & Panwar, Rajat, 2015. "Pure versus hybrid competitive strategies in the forest sector: Performance implications," Forest Policy and Economics, Elsevier, vol. 54(C), pages 51-57.

    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:spr:jknowl:v:11:y:2020:i:2:d:10.1007_s13132-018-0560-y. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.