Technology innovation ambidexterity, business model ambidexterity, and firm performance in Chinese high-tech firms

Abstract

Although innovation ambidexterity is a critical factor for a firm’s long-term success, particularly in high-tech firms operating in a dynamic environment, limited research offers views regarding the mechanism how innovation ambidexterity affects firm performance. Drawing upon market orientation theory, this study conceptualizes business model ambidexterity as a high-order construct consisting of market-driven and driving-market business models. Premised on the resource-based view, this study explores how innovation ambidexterity affects business model ambidexterity and, in turn, firm performance. Different influences of diverse business models that act upon firm performances are also probed. Survey data collected from 201 Chinese high-tech firms demonstrate that business model ambidexterity is viable and has a much more positive impact on firm performance compared with the single dimensional approach. In this study, business model ambidexterity has partially mediated the relationship between technological innovation ambidexterity and firm performance.