Product Innovations through Ambidextrous Organizational Culture with Mediating Effect of Contextual Ambidexterity: An Empirical Study of IT and Telecom Firms

Abstract

Considering the universal competitive pressures, it is imperative for the organizations to be more dynamic and innovative. The viability of companies is dependent on innovation and organizational culture is regarded as an important component in realizing the objective of product innovation. The study examines the association between ambidextrous organizational culture and product innovation outcomes through mediation of contextual ambidexterity. By pursuing the snowball sampling technique, pre-established structural questionnaires were distributed among the top management of IT and Telecom sector, 125 valid questionnaires were considered for data analysis purpose. The collected data was analyzed using Smart PLS software and measurement model was assessed with respect to reliability and validity. Structural model was assessed for hypothesis testing using bootstrapping technique. Results indicated that organizational diversity significantly and positively affect new product innovation outcomes i.e., incremental, radical product innovation, and speed to market, whereas shared vision positively affect incremental product innovation. Indirect effects results indicated that significant positive partial mediation of contextual ambidexterity exists between organizational diversity and new product innovation outcomes, i.e., radical innovation and speed to market. Whereas full and significant positive mediation role of contextual ambidexterity exists between shared vision and new product innovation outcomes i.e., radical innovation outcomes and speed to market. At last, no significant mediation role of contextual ambidexterity exists between organizational diversity and incremental innovation outcomes.