When is entrepreneurial orientation beneficial for new product performance? The roles of ambidexterity and market turbulence

Huang, Shuangfa; Pickernell, David; Battisti, Martina; Soetanto, Danny; Huang, Qihai

doi:10.1108/ijebr-02-2020-0103

Cited by 28 publications

(27 citation statements)

References 84 publications

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“…innovation and network ambidexterities. The effort to use ambidexterity as a mediator was also supported by the work of Huang et al (2020), which investigated the interrelationship among EO (innovativeness, proactiveness and risktaking), ambidexterity and performance under various environmental conditions.…”

Section: Ambidexterity As Mediating Variablesmentioning

confidence: 99%

“…The recent study from Huang et al (2020) also discussed the interrelation (or specific relationship) between ambidexterity and EO, in which they found that the EO's items varied across different situations. In this instance, it can be argued that the presence of the ambidexterity variable as a mediating factor showed the potential for investigation.…”

Section: Ambidexterity As Mediating Variablesmentioning

confidence: 99%

See 1 more Smart Citation

The dynamics between balanced and combined ambidextrous strategies: a paradoxical affair about the effect of entrepreneurial orientation on SMEs’ performance

Nofiani

Indarti

Lukito-Budi

et al. 2021

JEEE

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Purpose This study aims to provide empirical findings of the extent to which the ambidexterity found in innovation and social networks will mediate the relationship between entrepreneurial orientation (EO) and firm performance (FP). This study also compares the ambidextrous strategy between the balanced dimension (BD) and combined dimension (CD) and examines their contribution to the small- and medium-sized enterprises (SMEs’) performance. Design/methodology/approach The current study used an explanatory research design by surveying a total of 205 fashion firms’ owners/managers in Yogyakarta, Indonesia, using a semi-structured questionnaire. Path analysis with mediating tests and independent t-tests were used. Findings The results revealed that innovation and social network ambidexterity mediate the relationship between EO and the SMEs’ performance. One ambidextrous strategy, the BD strategy, is superior to the CD one. The study makes an interesting discovery: the CD strategy apparently dominates FP when EO does not exist. Practical implications The study suggests that no ambidextrous strategy (i.e. BD and CD) used by the SMEs can fit all situations. In detail, the study provides four different strategies for SMEs to build organizational ambidexterity, namely, innovate and sustain; elevate; expand; and collaborate and survive. It is also suggested that the SMEs consider two main principles when dealing with an ambidextrous strategy, “anything that is too much is not always good” and “one size does not fit all.” By doing so, the SMEs are expected to be able to use internal and external resources and choose the most appropriate ambidextrous strategy to respond to the relevant situation (e.g. the changes of consumer behavior due to the COVID-19 pandemic). Originality/value Using a dynamic capability approach by integrating two perspectives, i.e. the internal (resource-based theory) and external (resource-dependency theory) perspectives, makes the study relevant and valuable to better understand the role and type of ambidexterity among SMEs as a mediating factor between EO and FP. This paper breaks new ground by confirming a paradoxical phenomenon concerning organizational ambidextrous practices within SMEs. Additionally, four strategies for ambidextrous were developed to respond to the anomaly.

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Section: Ambidexterity As Mediating Variablesmentioning

confidence: 99%

Section: Ambidexterity As Mediating Variablesmentioning

confidence: 99%

The dynamics between balanced and combined ambidextrous strategies: a paradoxical affair about the effect of entrepreneurial orientation on SMEs’ performance

Nofiani

Indarti

Lukito-Budi

et al. 2021

JEEE

View full text Add to dashboard Cite

show abstract

“…Future studies could consider other variables, environmental complexity, environmental munificence and environmental turbulence, as this will further illuminate the relationship between the environment and EO. Similarly, according to Huang, Pickernell, Battisti, Soetanto and Huang (2020), EO can be labelled as an exploratory orientation that entails uncertain returns. In fact, Lumpkin and Pidduck (2021, p. 17) recently directed attention towards plausibility of an EO theory.…”

Section: Limitations and Future Research Avenuesmentioning

confidence: 99%

Modelling the relationships between the business environment, entrepreneurial orientation and employment growth amongst small, medium and micro-enterprises in South Africa

Dele-Ijagbulu

Moos

Eresia-Eke

2021

South African Journal of Business Management

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Purpose: This study seeks to model the nexus between environmental dynamism, environmental hostility, five sub-dimensions of entrepreneurial orientation (EO) (innovativeness, pro-activeness, risk-taking, competitive aggressiveness and autonomy) and employment growth.Design/methodology/approach: Based on a positivist research philosophy, this study adopts a quantitative methodological approach, which entails an online survey. Data is obtained through probability sampling of 1031 small, medium and micro enterprise businesses (SMMEs) and analysed using structural equation modelling (SEM).Findings/results: The findings reveal only four dimensions namely proactive-innovation, risk-taking, competitive aggressiveness, and autonomy as statistically visible, which is contrary to five as postulated in theory. In addition, it was found that the relationships between environmental hostility, environmental dynamism and the dimensions of EO were statistically significant. Conversely, the relationships between the dimensions of EO and employment growth were statistically insignificant except within the category of medium-sized businesses (MSBs) in which proactive-innovation and competitive aggressiveness indicated a statistically significant negative association with employment growth.Practical implications: A dynamic and hostile environment is essential to increased entrepreneurial intensity among SMMEs, but the size of the firm can be a determinant in their capacity for employment generation.Originality/value: The association between EO and employment growth has attracted less attention in research despite its theoretical and practical significance. Furthermore, studies on the antecedents of EO such as its relationship with environmental dynamism and hostility are limited. Following a multidimensional approach to EO, this empirical study illustrates its relationship with employment growth incorporating the component of the business environment. Regarding the plausibility of these associations, it distinguishes MSBs from the other categories of businesses within the SMME cohort.

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“…Ambidexterity can be calculated in several was Huang, Pickernell, Battisti, Soetanto, and Huang (2020) by the product or sum of the variables of the exploitation and exploration constructs, when there is a combined perspective between the two strategies (Gibson & Birkinshaw, 2004;He & Wong, 2004;Junni, Sarala, Taras, & Tarba, 2013;Lubatkin, Simsek, Ling, & Veiga, 2006) or by subtracting the exploration variables by the exploiting variables, when there is a panorama of equilibrium or continuum (Cao et al, 2009;Severgnini, Galdamez, & Vieira, 2018). In this research, ambidexterity assumes a balance between the two types of activities, which allows a company to avoid or better manage the inherent risks of each activity, when one is prioritized, to the detriment of the other (Cao et al, 2009).…”

Section: Exploitation Exploration and Ambidexterity (Et Er And Am)mentioning

confidence: 99%

The Effects of The Covid-19 Pandemic on Exploitative and Explorative Strategies of Pharmaceutical Industries in Brazil

Neto

Forte

Juliao

et al. 2021

International Journal of Business, Economics and Management

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The survey assesses whether changes in highly competitive market environments have led pharmaceutical companies in Brazil to adjust their corporate strategies in order to maintain or expand their performance. The study is of a theoretical-empirical type, and supported by a regression model and content analysis. Data collection applied questionnaires and interviews with managers of the pharmaceutical industries in two moments. The questionnaire referred to previous information (year 2019) and during the Covid-19 pandemic (June and December 2020). The interviews sought answers about future perspectives. As main results, the correlations between Market Turbulence, Exploitation, Exploration, Ambidexterity and Performance were positively validated, with the exception between Market Turbulence and Exploitation in 2019 and between Market Turbulence and Exploitation and also Exploration in 2019 and 2020. It is clear that companies in the pharmaceutical industry in Brazil changed their strategies to maintain or expand their performance in the face of this uncertain scenario, keeping exploration at levels similar to the previous year, but seeking balance in terms of exploitation, in the pursuit of ambidexterity, optimizing advantages of both strategies, with the mitigation of risks inherent to a turbulent scenario.Contribution/Originality: This study contributes to the organizational ambidexterity literature in highly turbulent environments, as is the case of the Covid-19 Pandemic, as well as identifies and analyzes how the pharmaceutical industries in Brazil had to carry out their incremental and or radical innovations in the global health crisis in 2020. ensures organizational survival (Gibson & Birkinshaw, 2004;He & Wong, 2004). On the other hand, other researchers argue that balance, on the contrary, is very difficult to achieve, since both strategies present considerably different perspectives and approaches and compete for resources (March, 1991).Environmental turbulence or environmental uncertainty, as Milliken (1987) andMiles, Snow, Meyer, andColeman (1978) prefer, refer to the impossibility of foreseeing the future given a sudden event in the environment, either by an environmental disaster or catastrophe, or when it becomes difficult to obtain the predictability of the

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When is entrepreneurial orientation beneficial for new product performance? The roles of ambidexterity and market turbulence

Cited by 28 publications

References 84 publications

The dynamics between balanced and combined ambidextrous strategies: a paradoxical affair about the effect of entrepreneurial orientation on SMEs’ performance

The dynamics between balanced and combined ambidextrous strategies: a paradoxical affair about the effect of entrepreneurial orientation on SMEs’ performance

Modelling the relationships between the business environment, entrepreneurial orientation and employment growth amongst small, medium and micro-enterprises in South Africa

The Effects of The Covid-19 Pandemic on Exploitative and Explorative Strategies of Pharmaceutical Industries in Brazil

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