Ambidexterity and firm performance: The moderating effects of normative and cognitive institutions

Abstract

The purpose of this paper is to assess the moderating effects of motivating and contextual factors on the relationship of innovation ambidexterity and firm performance. A theoretical framework was developed and tested using survey data from a sample of the Global University Entrepreneurial Spirit Students’Survey (GUESSS). The results suggest a positive effect of ambidexterity on firm performance, which is positively moderated by motivating factors, the number of co-owners and normative and cognitive institutions, such as power distance and university environment and program learning, respectively. The study provides important insights for policymakers to promote entrepreneurial education and clues for future research, as well as extends existing theory by offering insights on the moderator effects of individual and contextual factors on the relationship between ambidexterity and firm performance, assuming the benefits of the synergic effects of exploration and exploitation.