Organizational Ambidexterity, Design, Environmental Dynamism and Performance of Large Manufacturing Firms in Kenya

Abstract

The core objective of this research was to establish the role of organizational design and environmental dynamism in the relationship between organizational ambidexterity and performance of large manufacturing firms (LMFs) in Kenya. The studies linking ambidexterity to organizational performance are scanty and with mixed findings. The few studies indicate that there is no clear relationship between ambidexterity and organizational performance. More specifically, the study sought to establish the influence of organizational ambidexterity on the Kenyan LMFs performance. The research aimed at also evaluating the role of organizational design in the relationship between organizational ambidexterity and performance. Further, the research assessed the effect of environmental dynamism in the relationship between organizational ambidexterity and performance. Finally, the study evaluated the joint effect of organizational ambidexterity, design and environmental dynamism on the Kenyan LMFs performance. The research was founded on dynamic capabilities, configurations, and contingency theories, the anchoring theory being dynamic capabilities. A conceptual model was developed and several hypotheses were formulated to guide the study and testing. Positivism philosophy was applied in the research. The population of the study was 107 Kenyan LMFs, resulting into a census survey. Cross-sectional research design was used in the study. Primary data was collected using a structured questionnaire, which incorporated a section where financial performance data extracted from the firm’s financial statements over a five year period (2014 to 2018) was provided by the respondents. The respondents were the senior managers of the LMFs in Kenya; namely either Managing Directors/Chief Executive Officers (MDs/CEOs) or General Managers (GMs), or Heads of departments (HODs). Descriptive statistics, correlations, linear, multiple and hierarchical regressions were applied in the data scrutiny and interpretation. The study results showed positive and statistically significant organizational ambidexterity influence on the performance of Kenyan LMFs; the partial organizational design mediating role in the relationship between organizational ambidexterity and performance of LMFs in Kenya. Also, the research revealed no significant environmental dynamism moderating effect on the organizational ambidexterity influence on the performance of Kenyan LMFs. Further, the research revealed that organizational ambidexterity, design and environmental dynamism have positive and statistically significant joint effect on the performance of Kenyan LMFs. The study findings are useful to practitioners and managers of LMFs, manufacturing sector policymakers as well as scholars and researchers. The study had limitations of positivism philosophical orientation, cross-sectional design, possible subjectivity and personal bias and also context. The study recommends for further studies on the mediating role of organizational design as well as the environmental dynamism moderating effect, different variable operationalization, diversify respondents and context as well as longitudinal study.