Leveraging on Ambidexterity for Value Creation to Address Performance Dilemma of Hybrid Organizations

Abstract

It is important for organizations to create value for every stakeholder. However, for organizations to prioritize in creating equal values for all stakeholders is often constrained by limitation of resources. This issue is a common problem faced by all types of organizations and the problem is more apparent in hybrid organizations such as state-owned enterprises (SOEs), and social enterprises (SEs). Hybrid organizations have two main priorities which are to pursue business goals and social oriented goals. Both priorities are always in conflict because they have to share the same resources. Consequently, organizations are more likely to forgo a goal that are less of a priority at the time, and as a result of this, the interest of some stakeholders will be neglected. As the solution, there is a dire need for the organizations to improve their ability in balancing conflicting priorities. In literature, organizational ambidexterity has been discussed as a dynamic capability to balance between conflicting priorities. However, little is known in the literature on the extent to which ambidexterity influences value creation to resolve the issues that has been discussed here. This paper will address this gap by bringing forth the concept of ambidexterity as a dynamic capability to address the performance dilemma of hybrid organizations which is supported by past research. This concept paper coincides with the stakeholder theory and the findings will add new knowledge to the literature that may encourage further empirical studies.