Managerial behaviours that influence contexual ambidexterity and business unit performance

Abstract

To survive in an operating context characterised by high levels of volatility and uncertainty, organisations need to be ambidextrous. For this reason, organisations need to simultaneously explore and exploit, and do so at high levels of efficacy. In recent years, organisational ambidexterity has shifted away from being viewed as structurally and temporally facilitated, to being seen as an individual behavioural capability. This places a significant responsibility on managers to drive ambidextrous behaviours in their followers, yet little is known about how managers can achieve this. This study thus aimed to assess which managerial behaviours drive contextual ambidexterity and performance in business units. A quantitative, descriptive cross-sectional study was undertaken to investigate which managerial behaviours contribute to achieving contextual ambidexterity. An online questionnaire comprised of 43 mainly Likert-Scale questions was sent to managers in Southern African organisations. The responses received from 123 managers were analysed via a variety of statistical techniques, to assess whether certain managerial behaviours positively impacted the relevant business units’ contexts, contextual ambidexterity, and subsequently, performance. The study found that contextual ambidexterity is not achieved through a business unit context but rather directly through managerial behaviours that drive stretch, discipline, trust and support. Once contextual ambidexterity is achieved, this positively impacts business unit performance. However, as managers leverage different behaviours in their efforts to drive ambidexterity and business unit performance, they result in different effects. Whereas performance management behaviours have a more significant impact on contextual ambidexterity than social behaviours, business unit performance is positively impacted by the combination of contextual ambidexterity and an enabling social context of perceived trust and support.