Switching hats ::the effect of role transition on individual ambidexterity

This article contributes to the growing body of research that focuses on the microfoundations of organizational ambidexterity, that is, understanding what enables individuals to address the exploitation-exploration dilemma. One central challenge generated by ambidexterity is the multiplicity and divergence of organizational roles, to which individuals need to cater when exploiting and exploring. Specifically, we point to the relevance of how individuals identify with and enact this multiplicity of role demands. Following identity theory, we apply the logic of role integration and role segmentation, a foundational classification of how individuals cognitively manage role multiplicity. Further, as different role domains often require the interaction with other organizational functions, we test for the moderating effect of cross-functional coordination on the relationship between role segmentation and individual ambidexterity. Based on data from 120 global account managers employed by multinationals with an average size of 73,348 employees, our results indicate that role segmentation negatively influences an individual’s ability to behave ambidextrously. Interestingly, though, when operating in cross-functional teams, the impact of role segmentation becomes positive. We conclude by highlighting the scope and significance of these findings for theory, managerial practice, and future research

Ambidexterity: Size matters! Reflexive climate and organizational TMS’s influence and the contingent effect of size

Previous research has implicitly assumed that integration mechanisms are universally applicable to achieve ambidexterity. However, when pursuing ambidexterity, organizations of different sizes face different challenges when they attempt to foster integration, that is, cooperation and coordination. Therefore, we investigate whether small organizations can use a reflexive climate “to feel big”, and large organizations can use a transactive memory system “to feel small”. Using a sample of 101 companies in six industries, we show that both mechanisms positively affect ambidexterity. As hypothesized, a reflexive climate is more effective for small organizations. A transactive memory system, however, seems effective regardless of size

Embracing Paradox: TMT paradoxical processes as a steppingstone between TMT reflexivity and organizational ambidexterity

Top management teams are crucial in managing the ambidexterity paradox. This endeavour, however, generates cognitive conflicts. Surprisingly, this particular topic has received little attention within the ambidexterity literature. We aim to address this lacuna and, in doing so, extend the paradox literature and the emerging socio-cognitive perspective on ambidexterity. In our hypothesized mediation model, top management teams embrace the exploration-exploitation paradox through reflexivity, then overcome this paradox through paradoxical cognitive processing – the capacity to cognitively differentiate and integrate exploration and exploitation – which finally fosters ambidexterity. We test and find support for our hypotheses using a sample of 335 Dutch and German small and medium enterprises. We end with a discussion on how socio-cognitive factors influence the management of the ambidexterity paradox. In doing so, we refine scholarly understanding of motivating and enabling factors that allow top management teams to deal with the paradoxical tensions surrounding ambidexterity

Embracing Paradox: TMT paradoxical processes as a steppingstone between TMT reflexivity and organizational ambidexterity

Top management teams are crucial in managing the ambidexterity paradox. This endeavour, however, generates cognitive conflicts. Surprisingly, this particular topic has received little attention within the ambidexterity literature. We aim to address this lacuna and, in doing so, extend the paradox literature and the emerging socio-cognitive perspective on ambidexterity. In our hypothesized mediation model, top management teams embrace the exploration-exploitation paradox through reflexivity, then overcome this paradox through paradoxical cognitive processing – the capacity to cognitively differentiate and integrate exploration and exploitation – which finally fosters ambidexterity. We test and find support for our hypotheses using a sample of 335 Dutch and German small and medium enterprises. We end with a discussion on how socio-cognitive factors influence the management of the ambidexterity paradox. In doing so, we refine scholarly understanding of motivating and enabling factors that allow top management teams to deal with the paradoxical tensions surrounding ambidexterity

Firm reputation and investment decisions: The contingency role of securities analysts' recommendations

Moving beyond resource-based consequences of a firm's reputation, we develop a behavioral perspective on the impact of corporate reputation. Although there has been extensive discussion in previous studies of the benefits of reputation in terms of gaining resource advantages, we apply theory on self-regulatory focus to suggest that highly reputable firms may tend to have a prevention focus rather than a promotion focus in their investment strategies. This tendency will lead the firm to opt for low-risk investments rather than high-risk investments. Furthermore, we develop a contingency model and argue that the main effect of reputation on the investment decisions of the firm is further strengthened by the negative recommendations of securities analysts. We find support for our hypotheses. In doing so, we address emerging theories about the potential negative consequences of a firm's reputation and provide important insights for our theoretical understanding of the behavior of highly reputable firms