Resolving Strategic Dilemmas in Ambidextrous Organizations: An Integrated Second-Order Factor Model Perspective

Abstract

Drawing on relevant literature, this study investigates the process of realizing innovation ambidexterity (IA) by proposing a theoretical model and adopting a specifically integrated mechanism with the aim to resolve strategic dilemmas in ambidextrous organizations (AOs). We analyzed a sample of 136 cross-sectional surveys collected from business managers of 132 medium- and high-tech firms in China by employing a structural equation model combined with moderation analysis to test our hypotheses. Our findings indicate that the second-order theoretical model fits the data well and AO, represented by a higher-order construct, positively affects IA. Instead of structural ambidexterity, balanced contextual ambidexterity and radical performance management can be effectively applied as the factors of the second-order construct; the design comprising balanced contextual ambidexterity and performance management is thus helpful in resolving strategic dilemmas. Our findings demonstrate that Chinese firms, as technology latecomers, are more inclined to conduct near-radical innovation. The risk of exploration crowding out exploitation efforts exists in Chinese high-tech firms. Furthermore, we provides greater insights into the moderating impact of intra-organizational practice on IA based on the fact that performance measurement balance (PMB) did not directly influence the achievement of IA and clarifies the positive role that PMB plays in improving IA.

Creating AI business value through BPM capabilities

“…Managers should recognise the transformational effects and strategically plan the adoption of AI to maximise its impact on decision-making and overall business process performance. The findings align with existing research on process innovation (Cao and Jiang, 2022), suggesting that incremental improvements are mostly related to AI-assisted decision-making and contribute steadily to enhancing efficiency. However, radical improvements, the redesigning or creating of new processes with AI, provide significant leaps in performance.…”