Abstract:
Organisations need to implement both incremental innovation (exploitation), and radical
innovation (exploration) to ensure success and survival. Exploitation improves the
efficiency of current operations, whereas exploration develops new entrepreneurial ideas
for future viability. Two emerging concepts in literature, complexity leadership and
contextual ambidexterity, aim to enable simultaneous exploitation and exploration.
Regardless of the similar objectives, available literature has not yet established an
association between the concepts. Consequently, the first objective of this research
investigated whether complexity leadership could promote an organisationÕs ability to
enable both exploitative and exploratory innovation, simultaneously (contextual
ambidexterity).
Additionally, both complexity leadership and contextual ambidexterity acknowledge the
importance of the context within which organisations operate, and the accelerated rate
of change in todayÕs organisational environments (environmental dynamism). The rate
of change would influence the effectiveness of leadershipÕs innovation efforts.
Accordingly, the second objective of this research hypothesised that environmental
dynamism would moderate the relationship between these constructs.
A sample of 1 204 secondary survey responses was statistically analysed. The
researcher confirmed that complexity leadership has a significant, positive, linear
relationship with exploitation, exploration, and the combined construct contextual
ambidexterity. However, the moderator effect of environmental dynamism on these
relationships, was found not to be significant.
Therefore, complexity leadership promotes both exploitation and exploration, as well as
contextual ambidexterity. This particular leadership approach creates the supportive
context that promotes both types of innovation, simultaneously. Leadership can promote
contextual ambidexterity through activities associated with this approach, including
patterning of attention, developing networks, and contextual intelligence.
