Examining the Relationship Between Organizational Ambidexterity and Firm Performance in New Technology-Based Firms

Organizational ambidexterity is an essential topic in management research. A growing number of studies argue that organizational ambidexterity is increasingly critical to the sustained competitive advantage of firms. However, there is less research on ambidexterity in new technology-based firms, despite the significant impact it has on local and national economies. The study examined the relationship between organizational ambidexterity and firm performance (non-economic and economic). The sample consists of 102 Colombian new technology-based firms. A latent variable design or structural equation modeling was followed. The statistical method was Partial Least Squares Structural Equation Modelling (PLS-SEM). According to the results, organizational ambidexterity is positively related to both non-economic and economic performance. Organizational ambidexterity explained 10% of the variance of the economic performance and 56% of the variance of the non-economic performance. These findings highlight the importance of organizational ambidexterity to obtain better firm performance, especially non-economic performance related to customer perception, employee satisfaction, and improvement in the quality of products and services in new technology-based firms.