A Comparative Study to Evaluate the Role of Organizational Ambidexterity on Firms Performance in Production and Service Sector

Document Type : Research Article (Original Article)

Authors

1 MSc in Industrial Management, Faculty of Literature and Humanities, University of Guilan, Rasht, Iran.

2 Associate Professor, Faculty of Literature and Humanities, University of Guilan, Rasht, Iran.

3 Assistant Professor, Faculty of Literature and Humanities, University of Guilan, Rasht, Iran.

Abstract

 With intensifying competition and accelerating changes speed, the organizational ambidexterity influenced firm performance and by the simultaneously efforts of organizations to exploit and explore the opportunities available in a dynamic environment is obtained. Organizational ambidexterity as is defined as the ability to align with business demands and at the same time being consistent with environmental changes. Exploration and exploitation are two dimensions of organizational ambidexterity. In this paper, the effect of organizational ambidexterity on the performance in the two manufacturing and services industry has been investigated. Furthermore, moderating role of environmental dynamics in the relationship between the organizational ambidexterity and performance has been addressed. Research data has been collected in the manufacturing sector from the Rasht Industrial Zone and in the services sector from the retail stores in Rasht. Data was collected through questionnaires and analyzed by structural equation modeling and partial least squares algorithm. Findings show that in the two manufacturing and services industry organizational ambidexterity dimensions influence on performance. Moreover, environmental dynamics cannot moderate the relationship between organizational ambidexterity and performance in manufacturing companies; however relationship between exploration and performance at retail companies was moderated by environmental dynamics.

Keywords

Journal of Improvement Management
Volume 9, Issue 4 - Serial Number 30
January 2016
Pages 87-112

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History

  • Receive Date: 05 February 2017
  • Revise Date: 27 June 2021
  • Accept Date: 05 February 2017

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