Identifying the focal role of top management paradoxical cognition in ambidextrous firms

Abstract

Purpose: Past studies have associated top management’s paradoxical cognition and actions with the ambidextrous performance of firms. Compared to large firms, the top management members of small firms play a focal role in resolving the paradoxical tensions of explorative and exploitative innovation strategies. Anchored in the upper echelons perspective, the purpose of this paper is to explore the influences of two top management team (TMT) processes on organizational ambidexterity: TMT behavioral integration and TMT involvement in small and medium enterprises (SMEs).

Design/methodology/approach: The research is set in the context of 78 hi-tech SMEs across IT, biotech, and electronics industry. Multiple responses were collected from each firm. The authors used hierarchical regression analysis to test the hypotheses.

Findings: The findings from this paper demonstrate that the process of TMT behavioral integration enhances organizational ambidexterity. However, the results show that neither the top management’s involvement, nor the interaction of the top management’s involvement with the behavioral integration of a TMT, enhances organizational ambidexterity.

Research limitations/implications: The limited examination of two TMT processes has restricted the scope of this paper. The study has also been unable to measure paradoxical cognition in the TMT objectively and without proxy measures.

Originality/value: The results from this study add to the existing literature on paradoxical cognition, ambidexterity, and behavioral integration. The results from this study also lend support to the upper echelons perspective. Further, the findings from this paper present significant practical implications by throwing light on the senior team processes necessary for small ambidextrous firms in emerging economies. The volatile and rather unpredictable nature of emerging economies underscore the relevance of examining the facilitating conditions of small ambidextrous firms in these countries.