The Venture Firm’s Ambidexterity: Do Transformational Leaders Boost Organizational Learning for Venture Growth?

Abstract

Having experienced the turbulent change in corporate value rankings over the past 20 years, companies are paying attention to their reorganization to quickly recognize changes and proactively adapt to these changes for survival. This study examines the relationships and intervening ambidexterity mechanisms between CEOs’ leadership style and employees’ learning agility. Using multilevel regression, we analyze hypotheses on a sample of 102 participating CEOs and 236 employees. Results reveal that the ambidextrous organization, which pursues the current organizational development while constantly adapting to changing environments, plays a role as a partial mediator between transformational leadership and members’ learning agility. These results explain that to increase the organization’s agility, a systematic organizational structure system that stimulates members’ motives and simultaneously pursues utilization and exploration must be established through clear goals and appropriate stimuli even in an uncertain environment. Our finding contributes to an understanding of how the CEO’s leadership style affects employees’ learning agility in ventures and to what extent the contextual ambidextrous structure influences the relationship.

The Effect of Transactional Leadership on Organizational Agility in Tourism and Hospitality Businesses: The Mediating Roles of Organizational Trust and Ambidexterity

“…Lastly, the findings confirm our seventh hypothesis that organizational ambidexterity mediates the link between transactional leadership and organizational agility. This finding is indirectly consistent with those of prior studies (e.g., [27,72]). A strong focus is placed on performance-based rewards and responsibility in transactional leadership.…”

“…Ambidexterity encompasses the organization's capacity to effectively balance exploration and exploitation [26]. In the context of this study, ambidexterity is proposed as an additional mediating factor between transactional leadership and organizational agility [27]. Transactional leaders who adeptly oversee resource management and decision-making processes and foster a culture that encourages both exploration and exploitation can enhance the organization's ambidexterity.…”

“…The organizational ambidexterity that arises from transactional leadership can serve as a mediating factor between this leadership style and organizational agility. Ambidextrous organizations possess the capability to swiftly respond to changes, seize new opportunities, and adapt to evolving market conditions [27]. By effectively balancing operational excellence and innovative practices, these organizations can navigate uncertainties with greater effectiveness, aligning with the concept of agility [72].…”

Developing sustainable workplace through leadership: Perspectives of transformational leadership and of organizational citizenship behavior

“…At the same time, it can highlight the charm of the leader and stimulate the subordinates' feelings and recognition of the organization and leadership. The transformational leaders could demonstrate a leader's consideration for the individual employees by listening attentively, observing the performance of subordinates (such as coaches or supervisors), and meeting the developmental needs of the subordinates (Kim and Lee, 2021 ). The transformational leadership would motivate the employees to reveal their greatest potential by encouraging them to take more responsibility (Bose et al, 2021 ), and point out that the employees should value the vision of the group interests (Li et al, 2016 ).…”