Ambidextrous organization and Innovative performance: testing the mediation effect of the internal networking

Purpose This paper has two aims: first to investigate whether an ambidextrous organization can be represented in a more integrated and complete way as a second order construct, reflected by contextual (managers social support and performance management context) and structural approaches (see figure below); second to examine whether internal networking mediates the relationship between the ambidextrous organization and its attitude to pursue high level of innovation ambidexterity. Design/methodology/approach To test our arguments, we carried out a survey in medium high tech industries, collecting data from a sample of Austrian and Italian firms. Data collection took place in 2011. In total, 185 useful questionnaires were received, resulting in an effective response rate of 13.5%. Structural equation modeling (SEM) with AMOS was used to examine the hypothesized model. Originality/value The results show that our second order theoretical model fits the data well and internal networking partially mediates the relationship between the ambidextrous organization and the innovative performance. This study contributes to the debate on organizational ambidexterity in at least two important ways: first, it shows that both structural and contextual approaches can be taken together and modelled as a second order construct, thus representing an holistic view of the ambidextrous organization. Second, this empirical study is one of the first to investigate the role that the ambidextrous organization has in fostering internal networking, which in turns affects innovative performance. Practical implications This study shows that the ambidextrous organization is not simply the result of either a structural solution or a contextual solution, but it should be made up of different organizational antecedents of ambidexterity that might complement one another. Toghether with the formal organizational structure, the role played by managers is fundamental since they foster employees to reach their objectives, to be empowered and to be free to decide how to divide their time and resources; furthermore managers should devote considerable effort to developing subordinates, giving creative challenges to their people instead of narrowly defining tasks.