infonet-economy

Prior studies argue that behaviorally complex managers may contribute to an organizational unit's ambidexterity. While some suggest that such managers reconcile exploration and exploitation directly, others propose that they foster both activities indirectly by framing an ambidextrous behavioral context. We hypothesize that these direct and indirect processes are not independent alternatives, but are interrelated. Based on two samples, we find that SMEs' managers affect unit-level ambidexterity directly and indirectly, while those of larger corporations' business units only have an indirect effect. Our study extends and reconciles the literature on managerial and contextual ambidexterity, as well as that on individual-level and unit-level ambidexterity. The insight that the effectiveness of different paths to ambidexterity may depend on the type of organization under study, is further discussed.