Ambidextrous Innovation in Mediating Entrepreneurial Creativity on Firm Performance and Competitive Advantage

Abstract

A new business venture faces intense competition in a dynamic environment. To survive, new business ventures and established companies both need to generate creativity and significant new ventures to be highly competitive and have high levels of performance. In this study, we examined new business ventures that determined their competitiveness and performance generated from entrepreneurial creativity and mediated by ambidextrous innovation. This research used survey data collected from 143 Indonesian's new business shipping agencies, which was collected using an online survey and analyzed through structural equation modeling. The results showed that entrepreneurial creativity in new business ventures is positively associated with competitive advantage but not significant to create a competitive advantage. In contrast, entrepreneurial creativity is positively associated with firm performance. This result indicates that efforts to generate entrepreneurial creativity are not sufficient to create a competitive advantage despite having a significant influence on firm performance. However, entrepreneurial creativity is significantly and positively associated with firm performance and competitive advantage when mediated by ambidextrous innovation. The findings of this study suggest that the competitive advantage of a new business venture in facing intense competition in a dynamic environment condition can be overcome by generating strategic action in the form of entrepreneurial creativity and ambidextrous innovation.

Knowledge management capability, entrepreneurial creativity, entrepreneurial intensity and firm performance: the mediating role of ambidexterity

“…Empirical studies have shown that EI plays a vital role in improving organizational performance (Kajalo and Lindblom, 2015;Sumiati, 2020a, b). Therefore, based on the previous literature, we conclude a significant relationship between KMC and organizational performance through EC, organizational ambidexterity and EI (Sijabat et al, 2020;Tseng and Lee, 2014).…”

“…Given the relationship between creativity and innovation, some researchers have acknowledged that creativity is used to enhance innovation ambidexterity (Lestari et al, 2020;Subramaniam and Youndt, 2005). EC has a significant impact on the growth of innovative activities in any enterprise (Baron and Tang, 2011), affects both process innovation and product innovation, and plays a significant role in promoting ambidexterity by balancing exploratory and exploitative innovations (Sijabat et al, 2020). EC facilitates communication, and EC outcomes can increase innovation ambidexterity (Somech and Drach-Zahavy, 2013).…”

“…According to the knowledge-based view (KBV), KMC plays a crucial role in the development of innovation (Ding et al, 2019;Hall and Wagner, 2012;Naqshbandi and Jasimuddin, 2018;Taghizadeh et al, 2020) and has become a crucial addition for organizations (Tseng, 2016). In addition, EC and EI capabilities are essential dimensions of the development of entrepreneurial activities in the firm (Sijabat et al, 2020). Organizational ambidexterity affects the improvement and development of the intensity of entrepreneurial activities and, consequently, the firm performance (Abazeed, 2020;Lubatkin et al, 2006).…”

Platform Leadership and Sustainable Competitive Advantage: The Mediating Role of Ambidextrous Learning

“…The role of ambidextrous learning for competitive advantage has been confirmed by many researchers (Sijabat et al, 2020;Wang and Fang, 2021). In related studies, exploratory learning and exploitative learning are always used to explain the mechanism of the effects of certain organizational capabilities on sustainable competitive advantage (Yang and Wang, 2020;Yang et al, 2021).…”

“…Moreover, the sufficient number and type of knowledge resources are important inducements for the organization to form irreplaceable resources and capabilities, which help the firm to continuously improve its competitive ability ( Yang et al, 2021 ). Exploratory learning affects enterprises’ ability to adapt to the new environment and decision-making speed and emphasizes experiment and innovation ( Li et al, 2013 ; Sijabat et al, 2020 ; Zhou et al, 2021 ). It breaks existing learning paths and practices, promotes the reorganization and reconstruction of resources, and improves organizational environment adaptability.…”