Abstract
The appropriate balance in the ambidexterity of entrepreneurship can lead companies to achieve a competitive advantage. This research aims to analyze how the exploration and exploitation of opportunities in a balanced ambidexterity affect competitiveness. Furthermore, market and entrepreneurship orientations were studied as antecedents of entrepreneurial ambidexterity. The explanatory study had a sample of 106 Puerto Rican business owners and senior managers and used PLS to test the hypotheses. The results showed that the combined contribution of market orientation and entrepreneurship orientation through exploring and exploiting opportunities increases business competitiveness. However, the study results highlight a bias towards exploration, confirming that a lack of balance in ambidexterity results in limited competitiveness.
References
Ahmed, N. O. A. (2016). Relationship between innovation climate, market orientation and corporate entrepreneurship. International Review of Management and Marketing, 6(3), 476–480. https://dergipark.org.tr/en/pub/irmm/issue/32093/355370?publisher=http-www-cag-edu-tr-ilhan-ozturk
Ali, G. A., Hilman, H., & Gorondutse, A. H. (2020). Effect of entrepreneurial orientation, market orientation and Total Quality Management on performance: evidence from Saudi SMEs. Benchmarking: An International Journal, 27(4), 1503–1531. https://doi.org/10.1108/bij-08-2019-0391
Antoncic, B., & Hisrich, R. D. (2000). Intrapreneurship modeling in transition economies: a comparison of Slovenia and the United States. Journal of Developmental Entrepreneurship, 5(1), 21–40.
Aponte, M., Álvarez, M., & Lobato, M. (2021). Informe GEM Puerto Rico 2020. https://estadisticas.pr/files/Inventario/publicaciones/UPR_GEM_2020.pdf
Atuahene-Gima, K. (2005). Resolving the capability–rigidity paradox in new product innovation. Journal of Marketing, 69(4), 61–83. https://doi.org/10.1509/jmkg.2005.69.4.61
Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science,
(1), 74–94. https://doi.org/10.1007/BF02723327
Baker, W. E., & Sinkula, J. M. (1999). The synergistic effect of market orientation and learning orientation on organizational performance. Journal of the Academy of Marketing Science, 27, 411–427. https://doi.org/10.1177/0092070399274002
Baker, W. E., & Sinkula, J. M. (2002). Market orientation, learning orientation and product innovation: delving into the organization’s black box. Journal of Market-Focused Management, 5, 5–23. https://doi.org/10.1023/A:1012543911149
Baker, W. E., & Sinkula, J. M. (2009). The complementary effects of market orientation and entrepreneurial orientation on profitability in small businesses. Journal of Small Business Management, 47(4), 443–464. https://doi.org/10.1111/j.1540627x.2009.00278.x
Barney, J. B. (2001). Resource-based theories of competitive advantage: a ten-year retrospective on the resource-based view. Journal of Management, 27(6), 643–650. https://doi.org/10.1177/014920630102700602
Batra, I., P., P., & Dhir, S. (2022). Organizational ambidexterity from the Emerging Market Perspective: a review and research agenda. Thunderbird International Business Review, 64(5), 559–573. https://doi.org/10.1002/tie.22271
Bhuian, S. N., Menguc, B., & Bell, S. J. (2005). Just entrepreneurial enough: the moderating effect of entrepreneurship on the relationship between market orientation and performance. Journal of Business Research, 58(1), 9–17. https://doi.org/10.1016/s0148-2963(03)00074-2
Burgers, H., & Jansen, J. (2008). Organizational ambidexterity and corporate entrepreneurship: the differential effects on venturing, innovation and renewal processes. Frontiers of Entrepreneurship Research, 28(19), 1–15. https://eprints.qut.edu.au/26477/1/c26477.pdf
Calderón-Abreu, T., Castro-Gonzáles, S., Ayala-Godoy, J. A., & Hernández-Díaz, A. (2023). Informe GEM Puerto Rico 2022. https://gem.uprrp.edu/wp-content/uploads/2023/05/Reporte_GEM_PR_2022_UPR-RP_Final-3.pdf
Chakma, R., Paul, J., & Dhir, S. (2022). Organizational ambidexterity: a review and research agenda. IEEE Transactions on Engineering Management, 1–17. https://doi.org/10.1109/ tem.2021.3114609
Chaudhary, S., & Batra, S. (2018). Absorptive capacity and small family firm performance: exploring the mediation processes. Journal of Knowledge Management, 22(6), 1201–1216. https://doi.org/10.1108/jkm-01-2017-0047
Choi, Y. R., & Shepherd, D. A. (2004). Entrepreneurs’ decisions to exploit opportunities. Journal of Management, 30(3), 377– 395. https://doi.org/10.1016/j.jm.2003.04.002
Claudia, O., & Mihaela, H. (2019). Ambidexterity – a new paradigm for organizations facing complexity. Studies in Business and Economics, 14(3), 145–159. https://doi.org/10.2478/sbe-2019-0050
Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: a new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128–152. https://doi.org/10.2307/2393553
Covin, J. G., & Miles, M. P. (1999). Corporate entrepreneurship and the pursuit of competitive advantage. Entrepreneurship Theory and Practice, 23(3), 47–63. https://doi.org/10.1177/104225879902300304
Covin, J. G., & Wales, W. J. (2012). The measurement of entrepreneurial orientation. Entrepreneurship Theory and Practice, 36(4), 677–702. https://doi.org/10.1111/j.1540-6520. 2010.00432.x
Davidson, P. (2015, November 16). Harvard professor calls trade deal watershed, says Economy Lags. USA Today. https://www.usatoday.com/story/money/2015/11/16/michael-porterharvard-interview-trade-deal-economy/75599090/
De Long, D. (1997). Building the knowledge-based organization: how culture drives knowledge behaviors. Center for Business Innovation Working. https://www.academia.edu/30414465/Building_the_Knowledge_Based_Organization_How_Culture_Drives_Knowledge_Behaviors
Díaz-Chao, Á., Sainz-González, J., & Torrent-Sellens, J. (2016). The competitiveness of small network-firm: a practical tool. Journal of Business Research, 69(5), 1769–1774. https://doi.org/10.1016/j.jbusres.2015.10.053
Díaz, M. (2023, September 20). Las quiebras de negocios aumentan 10% en los primeros ocho meses del 2023. El Nuevo Día. https://www.elnuevodia.com/negocios/economia/notas/las-quiebras-de-negocios-aumentan-10-en-los-primeros-ochomeses-del-2023/
Fagiolo, G., & Dosi, G. (2003). Exploitation, exploration and innovation in a model of endogenous growth with locally interacting agents. Structural Change and Economic Dynamics, 14(3), 237–273. https://doi.org/10.1016/s0954-349x(03)00022-5
Fang, C., Lee, J., & Schilling, M. A. (2010). Balancing exploration and exploitation through structural design: the isolation of subgroups and organizational learning. Organization Science, 21(3), 625–642. https://doi.org/10.1287/orsc.1090.0468
Feurer, R., & Chaharbaghi, K. (1994). Defining competitiveness: a holistic approach. Management Decision, 32(2), 49–58. https://doi.org/10.1108/00251749410054819
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.2307/3151312
Foss, N. J., & Klein, P. G. (2012). Organizing entrepreneurial judgment: a new approach to the firm. Cambridge University Press.
Global Entrepreneurship Monitor (GEM). (2023). Global Entrepreneurship Monitor 2022/2023 global report: adapting to a “new normal”. https://www.gemconsortium.org/file/open?fileId=51147
Giraud Voss, Z., Voss, G. B., & Moorman, C. (2005). An empirical examination of the complex relationships between entrepreneurial orientation and stakeholder support. European Journal of Marketing, 39(9/10), 1132–1150. https://doi.org/10.1108/03090560510610761
Gnizy, I., Baker, W. E., & Grinstein, A. (2014). Proactive learning culture: a dynamic capability and key success factor for SMEs entering foreign markets. International Marketing Review, 31(5), 477–505. https://doi.org/10.1108/imr-10-2013-0246
Greve, H. R. (2007). Exploration and exploitation in product innovation. Industrial and Corporate Change, 16(5), 945–975. https://doi.org/10.1093/icc/dtm013
Guerrero, M. (2021). Ambidexterity and entrepreneurship studies: a literature review and research agenda. Foundations and Trends® in Entrepreneurship, 17(5-6), 436–650. https://doi.org/10.1561/0300000097
Gupta, A. K., Smith, K. G., & Shalley, C. E. (2006). The interplay between exploration and exploitation. Academy of Management Journal, 49(4), 693–706. https://doi.org/10.5465/amj.2006.22083026
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis: a global perspective (7a ed.). Pearson Education.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLSSEM). Sage Publications.
Hair, J. F., Wolfinbarger, M., Money, A. H., Samouel, P., & Page, M. J. (2015). Essentials of business research methods. Routledge.
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
Henseler, J., Hubona, G., & Ray, P. A. (2016). Using PLS path modeling in new technology research: updated guidelines. Industrial Management & Data Systems, 116(1), 2–20. https://doi.org/10.1108/imds-09-2015-0382
Hernández Sampieri, R., Fernández Collado, C., & Baptista Lucio, M. P. (2010). Metodología de la investigación. (5ta ed.). McGraw-Hill).
Huang, C. C., Wang, Y. M., Wu, T. W., & Wang, P. A. (2013). An empirical analysis of the antecedents and performance consequences of using the Moodle platform. International Journal of Information and Education Technology, 3(2), 217–221. https://doi.org/10.7763/ijiet.2013.v3.267
Hult, G. T. M., Hurley, R. F., & Knight, G. A. (2004). Innovativeness: its antecedents and impact on business performance. Industrial Marketing Management, 33(5), 429–438. https://doi.org/10.1016/j.indmarman.2003.08.015
Jatmiko, U. (2022). Competitive advantage of small and medium enterprises (SMEss) in terms of entrepreneurial and market orientation. International Journal on Social Science, Economics and Art, 12(3), 147-155. http://www.ijosea.isha.or.id/index.php/ijosea/article/download/114/74
Jaworski, B. J., & Kohli, A. K. (1993). Market orientation: antecedents and consequences. Journal of Marketing, 57(3), 53–70. https://doi.org/10.2307/1251854
Jiménez Ramírez, M. H. (2006). Modelo de competitividad empresarial. UMBral Científico, (9), 115–125. https://dialnet.unirioja.es/servlet/articulo?codigo=2263196
Katila, R., & Ahuja, G. (2002). Something old, something new: a longitudinal study of search behavior and new product introduction. The Academy of Management Journal, 45(6), 1183– 1194. https://doi.org/10.2307/3069433
Khandwalla, P. N. (1976). Some top management styles, their context and performance. Organization and Administrative Sciences, 7(4), 21–51.
Khodaei, H., Scholten, V. E., Wubben, E. F. M., & Omta, S. W. F. (2016). Entrepreneurship and prior experience as antecedents of absorptive capacity of high-tech academic spin-offs. Journal on Chain and Network Science, 16(2), 95–115. https://doi.org/10.3920/jcns2015.0003
Kohli, A. K., & Jaworski, B. J. (1990). Market orientation: the construct, research propositions, and managerial implications. Journal of Marketing, 54(2), 1–18. https://doi.org/10.2307/1251866
Kohli, A. K., Jaworski, B. J., & Kumar, A. (1993). Markor: a measure of market orientation. Journal of Marketing Research, 30(4), 467–477. https://doi.org/10.2307/3172691
Kuckertz, A., Kollmann, T., Krell, P., & Stöckmann, C. (2017). Understanding, differentiating, and measuring opportunity recognition and opportunity exploitation. International Journal of Entrepreneurial Behavior & Research, 23(1), 78–97. https://doi.org/10.1108/ijebr-12-2015-0290
Kushnir, K., Mirmulstein, M. L., & Ramalho, R. (2010). Micro, small, and medium enterprises around the world: how many are there, and what affects the count. World Bank/IFC MSME Country Indicators Analysis Note, 1-9. https://www.mfw4a.org/sites/default/files/resources/Micro%20Small%20and%20 Medium%20Enterprises%20Around%20the%20World%20 How%20Many%20Are%20There%20and%20What%20Affects%20the%20Count.pdf
Laureiro-Martínez, D., Brusoni, S., Canessa, N., & Zollo, M. (2014). Understanding the exploration–exploitation dilemma: an fMRI study of attention control and decision-making performance. Strategic Management Journal, 36(3), 319–338. https://doi.org/10.1002/smj.2221
Levinthal, D. A., & March, J. G. (1993). The myopia of learning. Strategic Management Journal, 14(S2), 95–112. https://doi.org/10.1002/smj.4250141009
Li, H. (2015). An examination of entrepreneurial oriented behaviors in the Australian wine industry regional clusters [Disertación doctoral, University of Adelaide]. Adelaide Research & Scholarship. https://hdl.handle.net/2440/93921
Long, H. C. (2013). The relationship among learning orientation, market orientation, entrepreneurial orientation, and firm performance of Vietnam marketing communications firms. Philippine Management Review, 20, 37–46. https://pmr.upd.edu.ph/index.php/pmr/article/view/312/311
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135–172. https://doi.org/10.5465/amr.1996.9602161568
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
Mathafena, R. B., & Msimango-Galawe, J. (2022). Entrepreneurial orientation, market orientation and opportunity exploitation in driving business performance: moderating effect of interfunctional coordination. Journal of Entrepreneurship in Emerging Economies, 15(3), 538–565. https://doi.org/10.1108/jeee-03-2021-0114
Menguc, B., & Auh, S. (2006). Creating a firm-level dynamic capability through capitalizing on market orientation and innovativeness. Journal of the Academy of Marketing Science, 34(1), 63–73. https://doi.org/10.1177/0092070305281090
Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29(7), 770–791. https://doi.org/10.1287/mnsc.29.7.770
Miller, D., & Friesen, P. H. (1982). Innovation in conservative and entrepreneurial firms: two models of strategic momentum. Strategic Management Journal, 3(1), 1–25. https://doi.org/10.1002/smj.4250030102
Mohiuddin Babu, M. (2017). Impact of firm’s customer orientation on performance: the moderating role of interfunctional coordination and employee commitment. Journal of Strategic Marketing, 26(8), 702–722. https://doi.org/10.1080/0965254x.2017.1384037
Montalbán Ríos, E. (2023, June 4). Siguen cerrando más empresas emergentes. El Vocero de Puerto Rico. https://www.elvocero.com/economia/otros/siguen-cerrando-m-s-empresas-emergentes/article_2f7b577c-be10-11ed-84ff-1be54adc900d.html
Moreno Luzon, M. D., & Valls Pasola, J. (2011). Ambidexterity and total quality management: towards a research agenda. Management Decision, 49(6), 927–947. https://doi.org/10.1108/00251741111143612
Newman, A., Prajogo, D., & Atherton, A. (2016). The influence of market orientation on innovation strategies. Journal of Service Theory and Practice, 26(1), 72–90. https://doi.org/10.1108/jstp-02-2015-0044
Nityananda, J., & Mohanty, A. N. (2012). Strategic entrepreneurship: key to success for competitiveness & globalization. International Journal of Science and Research (IJSR), 1(3), 208–214. https://www.academia.edu/download/57474995/Strategic_Entrepreneurship_Key_to_Success_For_Competitiveness___Globalization.pdf
Nunnally, J. C., & Bernstein, I. H. (1995). Psychometric theory. McGraw-Hill.
Ocasio, W. (1997). Towards an attention-based view of the firm. Strategic Management Journal, 18(S1), 187–206. https://doi.org/10.1002/(SICI)1097-0266(199707)18:1+<187::AIDSMJ936>3.0.CO;2-K
Ocasio, W. (2011). Attention to attention. Organization Science, 22(5), 1286–1296. https://doi.org/10.1287/orsc.1100.0602
Ong, J. W., Ismail, H. B., & Goh, G. G. (2010). The competitive advantage of small and medium enterprises (SMEs): the role of entrepreneurship and luck. Journal of Small Business & Entrepreneurship, 23(3), 373–391. https://doi.org/10.1080/08276331.2010.10593491
Pinchot III, G. (1985). Intrapreneuring: why you don’t have to leave the corporation to become an entrepreneur. HarperCollins.
Porter, M. E. (1990). The competitive advantage of nations. The Free Press.
Porter, M. E. (2002). Enhancing the microeconomic foundations of prosperity: the current competitiveness index. En The global ompetitiveness report 2001-2002 (pp. 52–73). World Economic Forum. https://citeseerx.ist.psu.edu/documentrepid=rep1&type=pdf&doi=fee0516424fa3a2f492b5775edaa9e0ed9856176
Porter, M. E. (2003). The economic performance of regions. Regional Studies, 37(6/7), 549–578. https://doi.org/10.1080/0034340032000108688
Pratono, A. H., Darmasetiawan, N. K., Yudiarso, A., & Jeong, B. G. (2019). Achieving sustainable competitive advantage through green entrepreneurial orientation and market orientation. The Bottom Line, 32(1), 2–15. https://doi.org/10.1108/bl-102018-0045
Rahman, M. M. (2023). Sample size determination for survey research and non-probability sampling techniques: a review and set of recommendations. Journal of Entrepreneurship, Business and Economics, 11(1), 42–62. http://scientificia.com/index.php/JEBE/article/view/201/190
Reinartz, W., Haenlein, M., & Henseler, J. (2009). An empirical comparison of the efficacy of covariance-based and variancebased SEM. International Journal of Research in Marketing, 26(4), 332–344. https://doi.org/10.1016/j.ijresmar.2009.08.001
Sanal, M., Alpkan, L., Aren, S., Sezen, B., & Ayden, Y. (2013). Linking market orientation and ambidexterity to financial returns with the mediation of innovative performance. Journal of Economic and Social Research, 15(1), 31–54. https://research-ebsco-com.uprrp.idm.oclc.org/linkprocessor/plink?id=334f3e3e-5223-388b-96cb-de3f650c1358.
Schwab, K. (2016). The global competitiveness report 2015-2016. World Economic Forum. https://www3.weforum.org/docs/gcr/2015-2016/Global_Competitiveness_Report_2015-2016. pdf
Senge, P. M. (1994). The fifth discipline fieldbook: strategies and tools for building a learning organization. Doubleday.
Shane, S. (2012). Reflections on the 2010 AMR decade award: delivering on the promise of entrepreneurship as a field of research. Academy of Management Review, 37(1), 10–20. https://doi.org/10.5465/amr.2011.0078
Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1), 217–226. https://doi.org/10.5465/amr.2000.2791611
Singh, A. K., Jain, N. K., Sharma, M. G., & Nigam, S. (2023). Reconceptualization of absorptive capacity as potential and realized absorptive capacity for project-based organizations. International Journal of Project Management, 41(2), Artículo e102449. https://doi.org/10.1016/j.ijproman.2023.102449
Slater, S. F., & Narver, J. C. (1995). Market orientation and the learning organization. Journal of Marketing, 59(3), 63–74. https://doi.org/10.2307/1252120
Sölvell, Ö. (2015). The competitive advantage of nations 25 years – opening up new perspectives on competitiveness. Competitiveness Review, 25(5), 471–481. https://doi.org/10.1108/cr07-2015-0068
Stephens, A. R. (2015). A study on the effects of strategic orientations on dynamic capabilities and international performance - evidence from Korean firms [Disertación doctoral, Pusan National University]. Research Gate. https://www.researchgate.net/publication/307664206_A_Study_on_the_Effects_of_Strategic_Orientations_on_Dynamic_Capabilities_and_International_Performance_-_Evidence_from_Korean_Firms1
Tortorella, G., Miorando, R., Caiado, R., Nascimento, D., & Portioli Staudacher, A. (2018). The mediating effect of employees’ involvement on the relationship between industry 4.0 and operational performance improvement. Total Quality Management & Business Excellence, 32(1–2), 119–133. https://doi.org/10.1080/14783363.2018.1532789
Trujillo Dávila, M. A., & Guzmán Vásquez, A. (2008). Intraemprendimiento: una revisión al constructo teórico, sus implicaciones y agenda de investigación futura. Cuadernos de Administración, 21(35), 37–63. https://www.redalyc.org/articulo.oa?id=20503503
Vélez Bernal, O. I., Beltrán Ríos, J. A., López Giraldo, J. A., & Arias Vargas, F. J. (2019). Asociatividad empresarial y liderazgo ambidiestro como generadores de innovación. Revista de Ciencias Sociales, 25(2), 51–72.
Velu, C., Barrett, M., Kohli, R., & Salge, T. O. (2010). Thriving in open innovation ecosystems: toward a collaborative market orientation. Cambridge Judge Business School. https://cambridgeservicealliance.eng.cam.ac.uk/system/files/documents/2013JanuaryPaperThrivinginOpenInnovation.pdf
Volery, T., Mueller, S., & von Siemens, B. (2013). Entrepreneur ambidexterity: a study of entrepreneur behaviours and competencies in growth-oriented small and medium-sized enterprises. International Small Business Journal: Researching Entrepreneurship, 33(2), 109–129.
Wei, Z., Zhao, J., & Zhang, C. (2014). Organizational ambidexterity, market orientation, and firm performance. Journal of Engineering and Technology Management, 33, 134–153. https://doi.org/10.1016/j.jengtecman.2014.06.001
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171–180. https://doi.org/10.1002/smj.4250050207
Wong, K. K. K. (2013). Partial Least Squares Structural Equation Modeling (PLS-SEM) techniques using SmartPLS. Marketing Bulletin, 24, 1–32. https://research-ebsco-com.uprrp.idm.oclc.org/linkprocessor/plink?id=9984fd08-e81e-3048-be3cfdf3de963202
Zahra, S. A. (1993). Environment, corporate entrepreneurship, and financial performance: a taxonomic approach. Journal of Business Venturing, 8(4), 319–340. https://doi.org/10.1016/0883-9026(93)90003-n
Zahra, S. A., & Covin, J. G. (1995). Contextual influences on the corporate entrepreneurship-performance relationship: a longitudinal analysis. Journal of Business Venturing, 10(1), 43– 58. https://doi.org/10.1016/0883-9026(94)00004-e
Zahra, S. A., & George, G. (2002). Absorptive capacity: a review, reconceptualization, and extension. Academy of Management Review, 27(2), 185–203. https://journals.aom.org/doi/abs/10.5465/AMR.2002.6587995
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Copyright (c) 2023 Fórum Empresarial