Theoretical Foundations: Ambidexterity as an Explanation for Firm Performance and Survival

The following chapter explores ambidexterity as an explanation for firm performance and survival. Sect. 2.1 introduces the ambidexterity construct, explains the connected tensions and trade-offs, and presents the impact of ambidexterity on firm performance; it then examines different modes that organizations can apply as a means of balancing exploration and exploitation activities and overcoming the connected tensions. Sect. 2.2 then focuses on ambidexterity in resource-constrained organizations, conducting a systematic literature review on ambidexterity and its performance implications for RCOs. This literature review contributes to ambidexterity research by revealing the inconsistent findings of prior studies in the context of RCOs in contrast to mostly positive performance findings for large organizations.