Organisational resilience, ambidexterity and performance: the roles of information technology competencies, digital transformation policies and paradoxical leadership

Abstract

Purpose In the current highly volatile and uncertain economic environment, recovery strategies that emphasise attributes and skills are essential for an enterprise to recover and adapt to disruptions. Based on the resource-based view (RBV), this study aims to understand how organisational resilience functions and its outcomes. Specifically, this study establishes links between organisational resilience and internal capabilities in information technology (IT) applications, exploitation-exploration activities and organisational leadership, which are represented by IT competencies, organisational ambidexterity and paradoxical leadership, respectively. The study also analyses the role of government digital transformation policies after the COVID-19 pandemic as an external resource. Design/methodology/approach This study provides empirical evidence of the dynamic relationships between organisational resilience, ambidexterity and performance under the interactions IT competencies, digital transformation policies and paradoxical leadership by using data collected from 336 small- and medium-sized enterprises (SMEs) in Vietnam and the partial least squares-structural equation modelling technique. Findings IT competencies and organisational ambidexterity strengthen organisational resilience, reduce missed opportunities and increase organisations’ responsiveness to market volatility. Increasing organisational ambidexterity and resilience enhances the business performance of SMEs. Paradoxical leadership favours organisational ambidexterity and resilience and their outcomes. Digital transformation policies from the government can support SMEs’ IT competencies and resilience. Originality/value To the best of the authors’ knowledge, this study based on the RBV is the first to show how integrating external resources with dynamic capabilities such as organisational ambidexterity and resilience can help SMEs build and maintain a sustainable competitive advantage in highly uncertain environments. This research emphasises the vital role of organisational resilience in improvising changes in working processes in response to unexpected events and the importance of a strategy for developing the capability to anticipate a wide variety of situations and seize opportunities quickly.

Business Resilience for Small and Medium Enterprises and Startups by Digital Transformation and the Role of Marketing Capabilities—A Systematic Review

“…Organizational ambidexterity, the ability to simultaneously explore new opportunities and exploit existing capabilities, has been recognized as a key dynamic capability that enables firms to navigate disruptive changes effectively [38,39]. Studies have found that ambidextrous organizations, which can balance exploration and exploitation activities, are better equipped to adapt to technological shifts, rapidly changing customer demands, and competitive pressures [40].…”

“…In the context of digital transformation, researchers have examined how firms can develop and leverage ambidextrous capabilities to thrive in turbulent environments. This includes understanding the organizational structures, processes, and leadership approaches that can foster ambidexterity and allow firms to simultaneously pursue incremental innovations and radical, disruptive innovations [38,40].…”

Achieving manufacturing supply chain resilience: the role of paradoxical leadership and big data analytics capability

“…By challenging traditional ways of thinking and promoting innovation and creativity, supply chain managers with paradoxical cognition are better positioned to devise optimal solutions and bolster supply chain resilience in the face of disruptions within the supply chain. Additionally, Trieu et al (2023) empirically indicated that paradoxical leadership contributes positively to organizational resilience. Consequently, we propose: H1.…”

“…Moreover, numerous studies emphasize the significant influence of top managers, particularly their cognitive processes, on a company's strategy and organizational ambidexterity (Eggers and Kaplan, 2013;Bromiley and Rau, 2016;Wilms et al, 2019). Specially, many studies have consistently demonstrated the positive effect of paradoxical leadership on organizational ambidexterity (Wilms et al, 2019;Trieu et al, 2023), encompassing ambidextrous innovation (Zhang et al, 2015). Coupled with the above analysis on paradoxical mindset, we can take it for granted that paradoxical leadership plays a crucial role in managing these tensions within supply chain ambidexterity and effectively balancing the relationship between exploration and exploitation in supply chain management.…”

“…(2018) assert that “supply chain ambidexterity requires an organization's supply chain to possess both agility, enabling swift responses to short-term market changes, and adaptability, facilitating the configuration of the resource base and structure of the supply chain to achieve long-term efficiency gains.” Moreover, numerous studies emphasize the significant influence of top managers, particularly their cognitive processes, on a company's strategy and organizational ambidexterity (Eggers and Kaplan, 2013; Bromiley and Rau, 2016; Wilms et al ., 2019). Specially, many studies have consistently demonstrated the positive effect of paradoxical leadership on organizational ambidexterity (Wilms et al ., 2019; Trieu et al ., 2023), encompassing ambidextrous innovation (Zhang et al. , 2015).…”