Unpacking Organizational Ambidexterity: Dimensions, Contingencies, and Synergistic Effects

Abstract

Significant ambiguity remains in the literature regarding the conceptualization of organizational ambidexterity. We unpack this construct into one with two dimensions we term the balance dimension of ambidexterity (BD) and the combined dimension of ambidexterity (CD). BD corresponds to a firm's orientation to maintain a close relative balance between exploratory and exploitative activities, whereas CD corresponds to their combined magnitude. We reason that these dimensions are conceptually distinct, and rely on different causal mechanisms to enhance firm performance. We find that over and above their independent effects, concurrent high levels of BD and CD yield synergistic benefits. We also find that BD is more beneficial to resource-constrained firms, whereas CD is more beneficial to firms having greater access to internal and/or external resources. These results indicate that managers in resource-constrained contexts may benefit from a focus on managing trade-offs between exploration and exploitation demands, but for firms that have access to sufficient resources, the simultaneous pursuit of exploration and exploitation is both possible and desirable.