Ambidexterity in Green Innovation: Organisational Consequences of Exploration and Exploitation Strategies

Abstract

Global warming and climate change are driving organisations to pursue green innovation efforts, which aim to reduce environmental impact and achieve sustainability goals. However, green innovations can be costly and difficult for organisations to implement in the short term. This study explores the concept of green organisational ambidexterity, defined as the simultaneous pursuit of exploration and exploitation strategies in green innovation activities. Organisations can create novel and innovative green products and processes as well as improve existing green products and processes by combining exploration and exploitation strategies. This situation provides organisations to compete more strategically in the long and short term while also being more environmentally friendly. The purpose of this study is to reveal the theoretical and conceptual framework of the concept of green organisational ambidexterity by reviewing the research conducted within the scope of the literature review and addressing its effects on organisations and sectors. In this regard, proposals are made to advance the body of literature addressing the concepts of green psychological capital, digital-technology adaptation, green strategic leadership and green strategic tension. The findings are intended to serve as a guideline for future research.

Keywords

• Green Innovation
• Exploration Strategy
• Exploitation Strategy
• Green Organisational Ambidexterity
• Sustainability
• Organisational Performance

References

1. Aguilera-Caracuel, J., & Ortiz-de-Mandojana, N. (2013). Green innovation and financial performance: An institutional approach. Organization & Environment, 26(4), 365–385. https://doi.org/10.1177/1086026613507931 google scholar
2. Alauddin, M. (2023). Corporate social responsibility and ambidextrous green innovation: The role of green creativity as mediator. Pakistan Journal of Commerce and Social Sciences (PJCSS), 17(2), 214–239. google scholar
3. Albert, S., Ashforth, B. E., & Dutton, J. E. (2000). Organizational identity and identification: Charting new waters and building new bridges. Academy of Management Review, 25(1), 13–17. https://doi.org/10.5465/amr.2000.2791600 google scholar
4. Aldieri, L., Kotsemir, M., & Vinci, C. P. (2021). Environmental innovations and productivity: Empirical evidence from Russian regions. Resources Policy, 74, 101444. google scholar
5. Asiaei, K., O’Connor, N. G., Barani, O., & Joshi, M. (2023). Green intellectual capital and ambidextrous green innovation: The impact on environmental performance. Business Strategy and the Environment, 32(1), 369–386. https://doi.org/10.1002/bse.3136 google scholar
6. Baquero, A. (2024). Linking green entrepreneurial orientation and ambidextrous green innovation to stimulate green performance: A moderated mediation approach. Business Process Management Journal, 30(8), 71–98. https://doi.org/10.1108/BPMJ-09-2023-0703 google scholar
7. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108 google scholar
8. Bruland, K., & Smith, K. (2013). Assessing the role of steam power in the first industrial revolution: The early work of Nick von Tunzelmann. Research Policy, 42(10), 1716–1723. google scholar

9. Cainelli, G., De Marchi, V., & Grandinetti, R. (2015). Does the development of environmental innovation require different resources? Evidence from Spanish manufacturing firms. Journal of Cleaner Production, 94, 211–220. google scholar
10. Cao, Q., Gedajlovic, E., & Zhang, H. (2009). Unpacking organizational ambidexterity: Dimensions, contingencies, and synergistic effects. Organization Science, 20(4), 781–796. https://doi.org/10.1287/orsc.1090.0426 google scholar
11. Carmeli, A., & Halevi, M. Y. (2009). How top management team behavioral integration and behavioral complexity enable organizational ambidexterity: The moderating role of contextual ambidexterity. The Leadership Quarterly, 20(2), 207–218. google scholar
12. Chakma, R., Paul, J., & Dhir, S. (2021). Organizational ambidexterity: A review and research agenda. IEEE Transactions on Engineering Management, 71, 121–137. google scholar
13. Chang, C. H. (2011). The influence of corporate environmental ethics on competitive advantage: The mediation role of green innovation. Journal of Business Ethics, 104(3), 361–370. https://doi.org/10.1007/s10551-011-0914-x google scholar
14. Chang, C. H., & Chen, Y. S. (2013). Green organizational identity and green innovation. Management Decision, 51(5), 1056–1070. google scholar
15. Chang, K. H., & Gotcher, D. F. (2020). How and when does co-production facilitate eco-innovation in international buyer-supplier relationships? The role of environmental innovation ambidexterity and institutional pressures. International Business Review, 29(5), 101731. google scholar
16. Chang, T. W., Chen, F. F., Luan, H. D., & Chen, Y. S. (2019). Effect of green organizational identity, green shared vision, and organizational citizenship behavior for the environment on green product development performance. Sustainability, 11(3), 617. google scholar
17. Chen, Y., Gao, L., & Zhang, Y. (2022). The impact of green organizational identity on green competitive advantage: The role of green ambidexterity innovation and organizational flexibility. Mathematical Problems in Engineering, 2022, 1–18. https://doi.org/10.1155/2022/4305900 google scholar
18. Chen, Y. S. (2008). The driver of green innovation and green image – green core competence. Journal of Business Ethics, 81(3), 531–543. https://doi.org/10.1007/s10551-007-9522-1 google scholar
19. Chen, Y. S. (2010). The drivers of green brand equity: Green brand image, green satisfaction, and green trust. Journal of Business Ethics, 93(2), 307–319. https://doi.org/10.1007/s10551-009-0223-9 google scholar
20. Chen, Y. S. (2011). Green organizational identity: Sources and consequence. Management Decision, 49(3), 384–404. google scholar
21. Chen, Y. S., & Chang, C. H. (2013). The determinants of green product development performance: Green dynamic capabilities, green transformational leadership, and green creativity. Journal of Business Ethics, 116(1), 107–119. https://doi.org/10.1007/s10551-012- 1452-x google scholar
22. Chen, Y. S., Chang, C. H., & Lin, Y. H. (2014). The determinants of green radical and incremental innovation performance: Green shared vision, green absorptive capacity, and green organizational ambidexterity. Sustainability, 6(11), 7787–7806. google scholar
23. Chen, Y. S., Chang, C. H., Yeh, S. L., & Cheng, H. I. (2015). Green shared vision and green creativity: The mediation roles of green mindfulness and green self-efficacy. Quality & Quantity, 49(3), 1169–1184. https://doi.org/10.1007/s11135-014-0041-8 google scholar
24. Clauss, T., Kraus, S., Kallinger, F. L., Bican, P. M., Brem, A., & Kailer, N. (2021). Organizational ambidexterity and competitive advantage: The role of strategic agility in the exploration-exploitation paradox. Journal of Innovation & Knowledge, 6(4), 203–213. google scholar
25. de la Peña Zarzuelo, I., Soeane, M. J. F., & Bermúdez, B. L. (2020). Industry 4.0 in the port and maritime industry: A literature review. Journal of Industrial Information Integration, 20, 100173. google scholar
26. Dubey, R., Gunasekaran, A., Childe, S. J., Fosso Wamba, S., Roubaud, D., & Foropon, C. (2021). Empirical investigation of data analytics capability and organizational flexibility as complements to supply chain resilience. International Journal of Production Research, 59(1), 110–128. https://doi.org/10.1080/00207543.2019.1582820 google scholar
27. Egelhoff, W. G. (1991). Information-processing theory and the multinational enterprise. Journal of International Business Studies, 22(3), 341–368. https://doi.org/10.1057/palgrave.jibs.8490306 google scholar
28. Gibson, C. B., & Birkinshaw, J. (2004). The antecedents, consequences, and mediating role of organizational ambidexterity. Academy of Management Journal, 47(2), 209–226. https://doi.org/10.2307/20159573 google scholar
29. Gu, S. (2023). Green innovation; a way to enhance economic performance of Chinese hotels. International Journal of Innovation Science, 15(3), 406–426. google scholar
30. Guo, Y., Wang, L., & Yang, Q. (2020). Do corporate environmental ethics influence firms’ green practice? The mediating role of green innovation and the moderating role of personal ties. Journal of Cleaner Production, 266, 122054. google scholar
31. Hafeez, M., Yasin, I., Zawawi, D., Odilova, S., & Bataineh, H. A. (2024). Unleashing the power of green innovations: The role of organizational ambidexterity and green culture in achieving corporate sustainability. European Journal of Innovation Management. Retrieved from https://www.emerald.com/insight/content/doi/10.1108/EJIM-04-2023-0274/full/html google scholar
32. Hart, S. L. (1995). A natural-resource-based view of the firm. The Academy of Management Review, 20(4), 986. https://doi.org/10.2307/258963 google scholar
33. Hart, S. L., & Dowell, G. (2011). Invited editorial: A natural-resource-based view of the firm: Fifteen years after. Journal of Management, 37(5), 1464–1479. https://doi.org/10.1177/0149206310390219 google scholar
34. Hatch, M. J., & Schultz, M. (2002). The dynamics of organizational identity. Human Relations, 55(8), 989–1018. https://doi.org/10.1177/0018726702055008181 google scholar
35. He, Z. L., & Wong, P. K. (2004). Exploration vs. exploitation: An empirical test of the ambidexterity hypothesis. Organization Science, 15(4), 481–494. https://doi.org/10.1287/orsc.1040.0078 google scholar
36. Jarvenpaa, S. L., & Ives, B. (1994). The global network organization of the future: Information management opportunities and challenges. Journal of Management Information Systems, 10(4), 25–57. https://doi.org/10.1080/07421222.1994.11518019 google scholar
37. Jiang, W., Chai, H., Shao, J., & Feng, T. (2018). Green entrepreneurial orientation for enhancing firm performance: A dynamic capability perspective. Journal of Cleaner Production, 198, 1311–1323. google scholar
38. Junni, P., Sarala, R. M., Taras, V., & Tarba, S. Y. (2013). Organizational ambidexterity and performance: A meta-analysis. Academy of Management Perspectives, 27(4), 299–312. https://doi.org/10.5465/amp.2012.0015 google scholar
39. Jurksiene, L., & Pundziene, A. (2016). The relationship between dynamic capabilities and firm competitive advantage: The mediating role of organizational ambidexterity. European Business Review, 28(4), 431–448. google scholar
40. Kassotaki, O. (2022). Review of organizational ambidexterity research. Sage Open, 12(1), 21582440221082127. https://doi.org/10.1177/21582440221082127 google scholar
41. Khan, A., Chen, L. R., & Hung, C. Y. (2021). The role of corporate social responsibility in supporting second-order social capital and sustainable innovation ambidexterity. Sustainability, 13(13), 6994. google scholar
42. Laperche, B., Lefebvre, G., & Langlet, D. (2011). Innovation strategies of industrial groups in the global crisis: Rationalization and new paths. Technological Forecasting and Social Change, 78(8), 1319–1331. google scholar
43. Liu, X., Liu, F., & Ren, X. (2023). Firms’ digitalization in manufacturing and the structure and direction of green innovation. Journal of Environmental Management, 335, 117525. google scholar
44. Lu, H. T., Li, X., & Yuen, K. F. (2023). Digital transformation as an enabler of sustainability innovation and performance–Information processing and innovation ambidexterity perspectives. Technological Forecasting and Social Change, 196, 122860. google scholar
45. Lubatkin, M. H., Simsek, Z., Ling, Y., & Veiga, J. F. (2006). Ambidexterity and performance in small-to medium-sized Firms: The pivotal role of top management team behavioral integration. Journal of Management, 32(5), 646–672. https://doi.org/10.1177/0149206306290712 google scholar
46. Ma, L., Ali, A., Shahzad, M., & Khan, A. (2025). Factors of green innovation: The role of dynamic capabilities and knowledge sharing through green creativity. Kybernetes, 54(1), 54–70. google scholar
47. Ma, Y., & Wang, J. (2024). Employee green innovation behavior based on the ability-motivation-opportunity framework: Fuzzy-set qualitative comparative analysis. Frontiers in Sustainability, 5, 1415832. google scholar
48. Mackey, T. B., Barney, J. B., & Dotson, J. P. (2017). Corporate diversification and the value of individual firms: A Bayesian approach. Strategic Management Journal, 38(2), 322–341. https://doi.org/10.1002/smj.2480 google scholar
49. March, J. G. (1991). Exploration and exploitation in organizational learning. Organization Science, 2(1), 71–87. https://doi.org/10.1287/orsc.2.1.71 google scholar
50. Marco-Lajara, B., Zaragoza-Sáez, P. C., Martínez-Falcó, J., & Sánchez-García, E. (2023). Does green intellectual capital affect green innovation performance? Evidence from the Spanish wine industry. British Food Journal, 125(4), 1469–1487. google scholar
51. Martínez-Falcó, J., Sánchez-García, E., Marco-Lajara, B., & Visser, G. (2024). Green ambidexterity innovation as the cornerstone of sustainable performance: Evidence from the Spanish wine industry. Journal of Cleaner Production, 452, 142186. google scholar
52. Moir, L. (2001). What do we mean by corporate social responsibility? Corporate Governance: The International Journal of Business in Society, 1(2), 16–22. google scholar
53. Mom, T. J. M., Chang, Y. Y., Cholakova, M., & Jansen, J. J. P. (2019). A multilevel integrated framework of firm hr practices, individual ambidexterity, and organizational ambidexterity. Journal of Management, 45(7), 3009–3034. https://doi.org/10.1177/0149206318776775 google scholar
54. Mulaessa, N., & Lin, L. (2021). How do proactive environmental strategies affect green innovation? The moderating role of environmental regulations and firm performance. International Journal of Environmental Research and Public Health, 18(17), 9083. google scholar
55. Mura, M., Micheli, P., & Longo, M. (2021). The effects of performance measurement system uses on organizational ambidexterity and firm performance. International Journal of Operations & Production Management, 41(13), 127–151. google scholar
56. Newman, A., Ucbasaran, D., Zhu, F., & Hirst, G. (2014). Psychological capital: A review and synthesis: Psychological capital: A review and synthesis. Journal of Organizational Behavior, 35(S1), S120–S138. https://doi.org/10.1002/job.1916 google scholar
57. O’Reilly, C. A., & Tushman, M. L. (2011). Organizational ambidexterity in action: How managers explore and exploit. California Management Review, 53(4), 5–22. https://doi.org/10.1525/cmr.2011.53.4.5 google scholar
58. O’Reilly, C. A., & Tushman, M. L. (2013). Organizational ambidexterity: Past, present, and future. Academy of Management Perspectives, 27(4), 324–338. https://doi.org/10.5465/amp.2013.0025 google scholar
59. O’Reilly, C. A., & Tushman, M. L. (2008). Ambidexterity as a dynamic capability: Resolving the innovator’s dilemma. Research in Organizational Behavior, 28, 185–206. google scholar
60. Pacheco, L. M., Alves, M. F. R., & Liboni, L. B. (2018). Green absorptive capacity: A mediation‐moderation model of knowledge for innovation. Business Strategy and the Environment, 27(8), 1502–1513. https://doi.org/10.1002/bse.2208 google scholar
61. Peng, C., Tian, Y., Zhang, Y., Arshad, M., Ahmad, W., & Duan, Y. (2024). Exploring the impact of team psychological capital on employee green innovation within the ecosystem-oriented business models in China. Asia Pacific Business Review, 1–23. https://doi.org/10.1080/13602381.2024.2311753 google scholar
62. Peterson, S. J., Luthans, F., Avolio, B. J., Walumbwa, F. O., & Zhang, Z. (2011). Psychological capital and employee performance: A latent growth modeling approach. Personnel Psychology, 64(2), 427–450. https://doi.org/10.1111/j.1744-6570.2011.01215.x google scholar
63. Raisch, S., & Birkinshaw, J. (2008). Organizational ambidexterity: Antecedents, outcomes, and moderators. Journal of Management, 34(3), 375–409. https://doi.org/10.1177/0149206308316058 google scholar
64. Raisch, S., Birkinshaw, J., Probst, G., & Tushman, M. L. (2009). Organizational ambidexterity: Balancing exploitation and exploration for sustained performance. Organization Science, 20(4), 685–695. https://doi.org/10.1287/orsc.1090.0428 google scholar
65. Reed, K. K., Lubatkin, M., & Srinivasan, N. (2006). Proposing and testing an intellectual capital‐based view of the firm. Journal of Management Studies, 43(4), 867–893. https://doi.org/10.1111/j.1467-6486.2006.00614.x google scholar
66. Rehman, R. U., Ahmad, M. I., Belas, J., Battisti, E., & Santoro, G. (2024). Green learning orientation and corporate environmental performance: The mediation role of green knowledge acquisition-management and the moderating role of CEO-gender. Journal of Knowledge Management, 28(7), 1996–2012. google scholar
67. Rehman, S. U., Kraus, S., Shah, S. A., Khanin, D., & Mahto, R. V. (2021). Analyzing the relationship between green innovation and environmental performance in large manufacturing firms. Technological Forecasting and Social Change, 163, 120481. google scholar
68. Renwick, D. W. S., Redman, T., & Maguire, S. (2013). Green human resource management: A review and research agenda. International Journal of Management Reviews, 15(1), 1–14. https://doi.org/10.1111/j.1468-2370.2011.00328.x google scholar
69. Schiederig, T., Tietze, F., & Herstatt, C. (2012). Green innovation in technology and innovation management – an exploratory literature review. R&D Management, 42(2), 180–192. https://doi.org/10.1111/j.1467-9310.2011.00672.x google scholar
70. Severgnini, E., Vieira, V. A., & Cardoza Galdamez, E. V. (2018). The indirect effects of performance measurement system and organizational ambidexterity on performance. Business Process Management Journal, 24(5), 1176–1199. google scholar
71. Shafait, Z., & Huang, J. (2024). Examining the impact of sustainable leadership on green knowledge sharing and green learning: Understanding the roles of green innovation and green organisational performance. Journal of Cleaner Production, 457, 142402. google scholar
72. Shahbaz, M. H., Ahmad, S., & Malik, S. A. (2024). Green intellectual capital heading towards green innovation and environmental performance: Assessing the moderating effect of green creativity in SMEs of Pakistan. International Journal of Innovation Science. Retrieved from https://www.emerald.com/insight/content/doi/10.1108/IJIS-08-2023-0169/full/html google scholar
73. Shehzad, M. U., Zhang, J., Latif, K. F., Jamil, K., & Waseel, A. H. (2023). Do green entrepreneurial orientation and green knowledge management matter in the pursuit of ambidextrous green innovation: A moderated mediation model. Journal of Cleaner Production, 388, 135971. google scholar
74. Sirmon, D. G., Hitt, M. A., & Ireland, R. D. (2007). Managing firm resources in dynamic environments to create value: looking inside the black box. Academy of Management Review, 32(1), 273–292. https://doi.org/10.5465/amr.2007.23466005 google scholar
75. Sirmon, D. G., Hitt, M. A., Ireland, R. D., & Gilbert, B. A. (2011). Resource orchestration to create competitive advantage: Breadth, depth, and life cycle effects. Journal of Management, 37(5), 1390–1412. https://doi.org/10.1177/0149206310385695 google scholar
76. Song, W., & Yu, H. (2018). Green innovation strategy and green innovation: The roles of green creativity and green organizational identity. Corporate Social Responsibility and Environmental Management, 25(2), 135–150. https://doi.org/10.1002/csr.1445 google scholar
77. Stubner, S., Blarr, W. H., Brands, C., & Wulf, T. (2012). Organizational ambidexterity and family firm performance. Journal of Small Business & Entrepreneurship, 25(2), 217–229. https://doi.org/10.1080/08276331.2012.10593570 google scholar
78. Su, X., Xu, A., Lin, W., Chen, Y., Liu, S., & Xu, W. (2020). Environmental leadership, green innovation practices, environmental knowledge learning, and firm performance. Sage Open, 10(2), 2158244020922909. https://doi.org/10.1177/2158244020922909 google scholar
79. Sun, Y., & Sun, H. (2021). Green innovation strategy and ambidextrous green innovation: The mediating effects of green supply chain integration. Sustainability, 13(9), 4876. google scholar
80. Takalo, S. K., & Tooranloo, H. S. (2021). Green innovation: A systematic literature review. Journal of Cleaner Production, 279, 122474. google scholar
81. Tang, Y., Chen, Y. J., Shao, Y. F., & Cao, Q. (2022). The impact of sustainable transformational leadership on sustainable innovation ambidexterity: Empirical evidence from green building industries of China. Frontiers in Public Health, 10, 814690. google scholar
82. Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z google scholar
83. Tu, Y., & Wu, W. (2021). How does green innovation improve enterprises’ competitive advantage? The role of organizational learning. Sustainable Production and Consumption, 26, 504–516. google scholar
84. Úbeda‐García, M., Marco‐Lajara, B., Zaragoza‐Sáez, P. C., Manresa‐Marhuenda, E., & Poveda‐Pareja, E. (2022). Green ambidexterity and environmental performance: The role of green human resources. Corporate Social Responsibility and Environmental Management, 29(1), 32–45. https://doi.org/10.1002/csr.2171 google scholar
85. Wang, J., Xue, Y., Sun, X., & Yang, J. (2020). Green learning orientation, green knowledge acquisition and ambidextrous green innovation. Journal of Cleaner Production, 250, 119475. google scholar
86. Wang, J., Xue, Y., & Yang, J. (2020). Boundary‐spanning search and firms’ green innovation: The moderating role of resource orchestration capability. Business Strategy and the Environment, 29(2), 361–374. https://doi.org/10.1002/bse.2369 google scholar
87. Weiss, L., & K. Kanbach, D. (2022). Toward an integrated framework of corporate venturing for organizational ambidexterity as a dynamic capability. Management Review Quarterly, 72(4), 1129–1170. https://doi.org/10.1007/s11301-021-00223-y google scholar
88. Zhang, Y., Sun, J., Yang, Z., & Wang, Y. (2020). Critical success factors of green innovation: Technology, organization and environment readiness. Journal of Cleaner Production, 264, 121701. google scholar