Is the Effect of Organizational Ambidexterity and Technological Innovation Capability on Firm Performance Mediated by Competitive Advantage? An Empirical Research on Turkish Manufacturing and Service Industries

Abstract

The strategic management literature reveals that organizational ambidexterity (OA) and technological innovation capabilities (TIC) have separate effects on competitive advantage (CA) and firm performance (FP). However, these two capabilities have not been investigated simultaneously and in comparison with the sector. The main aim of this study is to reveal the mediating role of CA in the effect of OA and technological innovation capabilities on FP. Using the research model based on quantitative data, the primary data were collected by applying an online survey to 770 people selected by the random sampling method from the textile/ready-made garment/leather sector representing the manufacturing sector and the information technology sector representing the service sector working under the Istanbul Chamber of Commerce (ICOC) in Istanbul. The data collected were analyzed using SPSS. The results showed that CA mediated positive and statistically significant effects of OA and technological innovation capabilities on FP, and this mediating effect differed by sectors. The current study provided insights into manufacturing and service sector firms. Based on these results, recommendations for researchers and firm managers are presented in the conclusion section.