Resolving Strategic Dilemmas in Ambidextrous Organizations: An Integrated Second-Order Factor Model Perspective

Area of Science:

• Business Management
• Innovation Studies
• Organizational Behavior

Background:

• Organizations face strategic dilemmas balancing exploration and exploitation.
• Innovation ambidexterity (IA) is crucial for sustained competitive advantage.
• Ambidextrous organizations (AOs) aim to manage these dual demands.

Purpose of the Study:

• To propose a theoretical model for realizing innovation ambidexterity (IA).
• To investigate mechanisms for resolving strategic dilemmas in ambidextrous organizations (AOs).
• To examine the role of contextual ambidexterity and performance management in IA.

Main Methods:

• Analysis of 136 cross-sectional surveys from Chinese medium- and high-tech firms.
• Structural equation modeling (SEM) and moderation analysis.
• Testing a second-order theoretical model of IA.

Main Results:

• The theoretical model demonstrated a good fit with the data.
• Ambidextrous organizations (AO) positively influence innovation ambidexterity (IA).
• Balanced contextual ambidexterity and radical performance management effectively resolve strategic dilemmas.

Conclusions:

• Balanced contextual ambidexterity and performance management are key drivers for IA.
• Chinese firms, as technology latecomers, focus on near-radical innovation.
• Performance measurement balance (PMB) positively moderates IA achievement, despite not directly influencing it.