Review and Extension on Ambidexterity: A Theoretical Model Integrating Networks and Absorptive Capacity

Abstract

We provided an integrative model linking ambidexterity, absorptive capacity and networks. External networks, measured through centrality and multiplexity, and internal networks through behavioral context, dual structure and top management teams affect an organization’s ambidexterity. In addition, multiplexity positively affects an organization’s realized and potential absorptive capacity, while centrality has an inverse-u relationship with potential and a positive relation with realized absorptive capacity. Also, internal networks through coordination, capabilities and socialization capabilities affect an organization realized and potential absorptive capacity. Realized absorptive capacity positively affects ambidexterity, while potential absorptive capacity moderates the relationship between realized absorptive capacity and ambidexterity. In posing our model, it was assumed that the operating environment of the firm remains constant. We generate propositions on these relationships for empirical testing and further theoretical insights.

Keywords: Ambidexterity, Exploration, Exploitation, Networks, Centrality, Multiplexity, Potential Absorptive Capacity, Realized Absorptive Capacity

JEL Classification: M1, L1