HRM System Formality and Organizational Ambidexterity Strategy in Technological Startup Companies

Abstract

The low survival of technological startup companies (TSCs) is partly due to the lack of human resources management formality (HRMF). This study clarifies HRMF and identifies a relevant measure for TSCs. It explores HRMF changes and their fit with business strategy changes during TSC development, operationalized as dynamic organizational ambidexterity. Data from 147 TSC leaders and HR role holders were collected twice, a year apart. HRMF control and professionalism were significantly related to ambidexterity strategy. Findings indicate that strategy changes precede HRMF changes. Results suggest that HRMF practices should be periodically matched to the ambidexterity strategy for TSC success.