Finding the microfoundations of organizational ambidexterity - Demystifying the role of top management behavioural integration

Abstract

Organizational ambidexterity in a firm is significantly influenced by the behavioural integration of the Top Management Team (TMT). Researchers observe that ambidextrous firms are associated with two dimensions of dexterity, namely, balanced and combined dimensions. However, studies do not explain the varied effects of behaviourally integrated TMTs on the different dimensions of ambidexterity. A clear understanding of this relationship will help firms choose the specific TMT processes needed to facilitate specific dimensions of ambidexterity. We address this research gap and test our research model with structural equation analyses on data collected from 78 SMEs. We observe that behavioural integration processes mostly enhance a firm's combined ambidexterity. Further, we find that combined ambidexterity completely mediates the relationship between behavioural integration and firm performance. Our study adds to the literature on ambidexterity, micro-foundations, and the theory of behavioural integration, and guides small firms in their choices of behavioural and innovation practices.