The effect of ambidexterity on market performance: a new perspective and measurement from the dynamic capability framework

ABSTRACT

Previous research defined ambidexterity as a dynamic capability that allows companies to generate and orchestrate a balance between exploitation and exploration. Following this line of thought, this study delves deeper into the relationships between exploitation, exploration and ambidexterity, as well as into their different natures, functions and utilities. To explore this perspective, we empirically analyse data from 605 organic agro-food processing companies regarding their level of exploitation, exploration, and synergy practices, and investigate their effect on their market performance. This research contributes to the organisational literature by understanding ambidexterity as a higher-order dynamic capability that encompasses both balance and synergies between exploitation and exploration practices. It also provides some advice to managers to develop different ambidexterity configurations to improve their firm market performance.

KEYWORDS:

• Ambidexterity
• exploitation
• exploration
• dynamic capability
• market performance

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This research is part of the Project ECO2015-71380-R funded by the Spanish Ministry of Economy, Industry and Competitiveness and the State Research Agency. Co-financed by the European Regional Development Fund (ERDF).

Notes on contributors

Juan P. Escorcia-Caballero

Juan P. Escorcia Caballero is a professor at the Entrepreneurship and Management Department, Business School, Universidad del Norte (Colombia). His research interests are Supply Chain Quality Management, Innovation, and Ambidexterity. He has published several journal and conference papers. He has participated in three research projects funded by the Administrative Department of Science, Technology, and Innovation of Colombia.

Odette Chams-Anturi

Odette Chams Anturi is a professor at the Science Economics Department, Universidad de la Costa (Colombia). Her research interests are Supply Chain Management, Organisational Learning, Innovation, and Ambidexterity. She has worked in public and private companies of mass consumption and healthcare entities.

Maria D. Moreno-Luzon

Maria D. Moreno-Luzon is a Professor of Business Management, the University of Valencia (Spain). Her research interests are quality management, organisational learning, innovation and ambidexterity. She has published between others in the British Journal of Management, Management Decision, Total Quality Management, International Journal of Quality & Reliability Management, Industrial Management & Data System and International Journal of Manpower.