infonet-economy

Contextual ambidexterity has been proposed to be crucial for company performance. Yet, only little is known about how contextual ambidexterity impacts firm performance. Based on prior research, we propose contextual ambidexterity to drive productive organizational energy toward the organizational overarching goals which in turn will positively impact firm performance. Our results support all four hypotheses by showing (a) contextual ambidexterity to facilitate firm performance, (b) contextual ambidexterity to positively impact productive organizational energy, (c) productive organizational energy to fosters firm performance, and ultimately (d) productive organizational energy acting as a partial mediator in the positive relation between contextual ambidexterity and firm performance. We achieved these results with a sample containing 118 German small to medium sized organizations. All focal variables were collected from different sources. In total our sample contains answers from 4452 employees, 355 top management team members, and 118 HR executives.