ifkad articles

The Relationship between of Organizational Ambidexterity and Competitive Advantage in Multi-Business Companies

Arkady V. Trachuk, Natalia V. Linder

Assessment of the impact of organizational ambidextrity on the competitiveness of multidisciplinary companies, expressed by indicators: productivity growth, the share of products certified according to international standards in the total volume of production of the company and the number of new competencies of the organization through the implementation of projects aimed at achieving organizational ambidextrity. An author’s complex model has been developed that allows analyzing how the achievement of organizational ambidextrity of business units affects the competitiveness of doing business by multidisciplinary companies, expressed by the level of productivity, the share of products certified according to international standards and the number of competencies of the company. The study offers a theoretical model that is empirically verified using structural equation modeling (SEM). The empirical basis of the study was 327 completed projects in 16 multidisciplinary companies. Based on the results of empirical analysis, it is shown that when implementing projects aimed at achieving organizational ambidextrity (expressed by indicators – the number of new categories of products and/or services introduced in the reporting year and reducing operating costs) is higher by 6-17% with an average value of 12.4%. It is shown that achieving the effectiveness of search activity has the greatest impact on productivity and the number of new competencies; while the improvement of operational activities is due to the share of products certified according to international standards in the total volume of production of the company and the number of new competencies of the organization through the implementation of projects aimed at achieving organizational ambidextrity. Firstly, this study defines the features and conditions for achieving organizational ambidextrity by multidisciplinary companies: effective knowledge exchange between business units, the development of learning and absorptive abilities in business units, as well as the sharing of opportunities and resources. In addition, this study shows that for multidisciplinary companies, knowledge sharing and resource sharing are key to achieving organizational ambidextrity. Secondly, an analytical model is proposed, the novelty of which lies in combining several areas of research on the relationship between organizational ambidextrity and competitiveness.

IN: Proceedings IFKAD 2024 – Translating Knowledge into Innovation Dynamics
PP: 2568-2587