Quality ambidexterity, competitive strategies, and financial performance

Abstract

Purpose -The purpose of this paper is to examine the relationship between quality ambidexterity, competitive strategies (cost leadership, differentiation, and focus), and firm performance in Palestinian industry, and to analyze the combination of quality exploitation and quality exploration (quality ambidexterity) associated with different levels of each competitive strategy. Design/methodology/approach -Using data collected through a survey of 205Palestinian industrial firms, the study conducted Structural Equation Modeling to test the proposed relationships. Additional statistical analyses were applied to the combinations of quality exploitation and quality exploration for each competitive strategy. Findings -The results show a positive and significant relationship between quality ambidexterity and three competitive strategies, and between competitive strategies and financial performance, focus strategy excepted. Balanced combination with similar levels of quality exploitation and quality exploration is found to be more suitable for higher levels of competitive strategies implementation, whereas an excess of quality exploration over quality exploitation is associated with lower levels of strategies implementation.Research limitations/implications -Although Palestine has two regions, the West Bank and the Gaza Strip, all survey respondents were from the West Bank. may help managers to implement quality exploitation and quality exploration practices in order to allocate resources effectively and ultimately improve financial performance.

The Role of Ambidexterity, Strategic Orientation and Supply Chain Integration on Firm Performance: Case Study of SMEs in Traditional Market

“… There is a positive and significant effect of ambidexterity on firm performance in traditional market MSMEs in Sleman Regency. The results of the study are supported by previous research conducted by Kedzierska (2018), Comez (2016), Tomljenović & Stilin (2010), Herzallah, Gutierrez, & Rosas (2017), Almahendra & Budiarto (2017), Torres, Roehrich, & Lewis (2017) and Luu (2017) who also stated that ambidexterity has a positive influence on firm performance.  There is a positive but not significant influence between strategy orientation and firm performance in traditional market MSMEs in Sleman Regency.…”

The role of competitive strategy in the performance impact of exploitation and exploration quality management practices

“…Third, by studying the performance impact of QM practices conditionally on a firm's competitive strategy focus, we contribute to closing a gap in the research landscape about the contingent impact of QM practices (Nair, 2006). Fourth, we add clarity to the conceptual associations between competitive strategy and QM practices and advance this emerging stream of research (Herzallah et al, 2017).…”

“…We will argue later that some firms can profit more from attributing attention to both QM practices than others when outlining our contingency hypotheses. Still, we posit that, at the core, the interplay between both exploitative and explorative QM practices has a positive impact on a firm's performance and longevity (Kim and Huh, 2015;Piao, 2014;Herzallah et al, 2017), and put forward the following hypothesis:…”

Operationalising Ambidexterity: The Role of "Better" Management Practices in High-Variety, Low-Volume Manufacturing

“…Based on their study of 231 Spanish manufacturing companies, they also found that higher environmental dynamism strengthened this effect and thus echoing the results of Frank, Güttel [18] where higher environmental dynamism increased the importance of ambidextrous capabilities. Others including Herzallah, Gutierrez-Gutierrez [19] linked what they labelled as "quality ambidexterity" to strategic intentconcluding that ambidextrous capabilities had a positive relationship on cost leadership, differentiation and focus organisational strategies (though focus had a negative relationship on manufacturing performance).…”