Role of innovation ambidexterity in technology startup performance: an empirical study

Innovation ambidexterity is equivocal and this concept holds a significant position in the literature of strategic entrepreneurship as it binds together the crucial dimensions of organisational learning theory. Ambidexterity is recognised as a source for achieving higher levels of firm performance; however, scholars left a gap in examining how innovation ambidexterity is achieved, particularly so in startups. Therefore, this study investigates how a balance between exploratory and exploitative innovations can lead towards better startup performance under the moderating effects of absorptive capacity and environmental dynamism. This is a cross-sectional empirical research on young incubating technology startups and the data were analysed using partial least square structural equation modelling (PLS-SEM). Our results highlight that innovation ambidexterity plays a crucial role in achieving better startup performance. This research contributes to the ambidexterity literature by providing quantitative evidence at a large scale, delineating the procedure through which entrepreneurs can achieve innovation ambidexterity. The research enriches the organisational learning theory by providing a more inclusive understanding of innovation ambidexterity concept.