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The purpose of this study is to examine the impacts of ambidexterity of exploration/exploitation on long-term performance and the moderating effects of slack resources. The methodology adopted is panel data analysis of a sample dataset of 125 high technology firms in China. The finding of this study shows that a moderating role of organizational slack between ambidexterity and long-term performance is strongly supported. The research and practical implications of this paper are: (1) Exploration and exploitation can be mutually enhancing instead of being fundamentally contradictory; (2) Slack resources moderate the relationship between ambidexterity and performance. The originality and value of the paper is that it is one of the earliest studies that empirically examine the moderating effects of slack resources on ambidexterity-performance relationship.

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The relationship between ambidexterity and firm performance holds a prominent place in the literature. However, studies that examine the conditions under which ambidexterity leads to success are relatively scarce. Based on a sample of 226 firms in China, this study examines the moderating effects of organizational slack and organizational life cycle on the relationship between balance dimension of ambidexterity and combined dimension of ambidexterity and firm performance. The empirical results reveal that pursuing a high level of combined dimension of organizational ambidexterity is only beneficial to firms with a high level of organizational slack or firms in maturity stage, while pursuing a high level of balance dimension of organizational ambidexterity is only beneficial to firms in growth stage, but not to firms in maturity stage.

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