The Impact of Diversity on Organizational Ambidexterity

Abstract

The management of Small & Medium Enterprises (SMEs) might represent a challenge. There are several concepts that affect the performance of SMEs. One is ambidexterity, which refers to the balance of activities for explorative and exploitative innovation. Another concept is diversity which encompasses differences in gender, age, cultural and functional backgrounds. Ambidexterity and diversity might be related as diversity influences the activities for explorative and exploitative innovation. It has been argued that successful organizations need to be ambidextrous.

The relationship between a diverse middle management team (MMT) and top management team (TMT) might affect the organizational ambidexterity. This impact has not been fully explored within SMEs. The purpose of this research is to identify how diverse management teams can impact organizational ambidexterity. An exploratory approach was used to get a deep understanding and to answer the research question. First, a literature review was conducted to explore key concepts related to organizational ambidexterity and to identify diversity characteristics that might impact the relationship between MMT and TMT, affecting the organizational ambidexterity. Thereafter, semi-structured interviews were conducted with members of the management team of Feedbackly to answer the research questions.

This research found that diverse management teams have a direct impact in organizational ambidexterity by providing a pool of resources, increasing the expertise, knowledge, and capabilities of the organization. Nevertheless, complexity in managing diverse teams increases, as potential barriers might appear, hindering the relationship between the two levels of the management team. Additionally, organizations might struggle to recognize diversity as way to acquire additional resources, and it is often difficult to take advantage of the benefits of diversity in turning the organization ambidextrous.