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Organisational culture, business model design and performance: Does ambidexterity play a role?

Abstract

Objective: The article aims to explore the relationships between cultural and innovation ambidexterity and novel business model design (NBMD) and trace their influence on business performance in the context of transition economies.

Research Design & Methods: We adopted a cross-sectional survey design using data collected in 2019 from 175 managers and owners of Albanian firms across nine knowledge-intensive sectors. We employed structured questionnaires with validated multi-item Likert scales to measure constructs like ambidexterity, NBMD, and performance, followed by rigorous validity and reliability checks (CFA). The analysis used covariance-based structural equation modelling (SEM) with bootstrapping to test hypothesised relationships and assess indirect effects.

Findings: Our study demonstrates that new business model design can capture the value created by organisational culture and innovation ambidexterity. More specifically, we found a chain relationship between ambidextrous organisational culture, innovation ambidexterity, novel business models, and business performance. These results support the view that, as a dynamic capability, ambidexterity affects performance indirectly through NBMD, while the performance outcomes of cultural ambidexterity are mediated by factors such as innovation ambidexterity and NBMD.

Implications & Recommendations: We identified NBMD as a design theme aligned with contextual ambidexterity that can capture the value-creation potential of this form of innovation ambidexterity. Managers should consider adopting an NBMD when pursuing innovation ambidexterity, while government and development agencies should consider providing grants to start-ups experimenting with novel business models.

Contribution & Value Added: This study represents one of the few attempts to investigate the relationships between organisational culture, capabilities and business models, contributing to the literature that focuses on identifying business models that can support paradoxical strategies, including ambidexterity.

Keywords

innovation, ambidexterity, business model design, organisational culture, business performance, transition economies

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Author Biography

Blendi Gerdoçi

Associate Professor at the Department of Management, University of Tirana, Albania. His research interests include transaction cost economics, strategic alliances and networks, contracting, and, more recently, education, business modelling, and innovation. He has published several articles in reputed scientific journals such as the Journal of Computers in Education, European Journal of Innovation Management, and other international journals.

Marco Cucculelli

Full Professor at the Department of Economics and Social Science, Marche Polytechnic University, Italy, where he coordinates the PhD program in Economics. His research interests are in the fields of innovation, corporate governance and finance, entrepreneurship and firm performance. He has published in several international journals, such as Research Policy, Journal of Corporate Finance, Small Business Economics, Journal of Evolutionary Economics, Cambridge Journal of Economics, Journal of Cleaner Production, Technological Forecasting & Social Change, and others. He is an Associate Editor of JSBM, JSBE and the Italian Economic Journal.

Daniela Lena

Post-Doc researcher at the Department of Economics and Social Science, Marche Polytechnic University, Italy. Her research interests include field, business modelling, firm growth and performance, productivity growth, sustainability development, environment regulation, and resilient cities. She has published in the European Journal of Innovation Management, Economia Marche-Journal of Applied Economics, and Technological Forecasting & Social Change.


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