LAUSR

ABSTRACT Researchers on organisational ambidexterity have proposed several solutions to address the potential conflicts between exploration activities and exploitation activities. Unlike simultaneous ambidexterity, sequential ambidexterity – defined as temporal switching between exploration and exploitation – has not been examined fully, and the conditions under which this temporal switching can be successful are unclear. This paper proposes the concept of temporal switching capability to better understand the process by which sequential ambidexterity is executed. In addition, we hypothesise that performance effects are contingent upon firm-specific factors: a firm’s business strategy and absorptive capacity. Utilising three sources of data – a secondary database, annual reports and a survey administered to 145 firms in the electronics industry with 10-year observations – we find support for our hypotheses. The results show that the temporal switching capability positively relates to new product performance and that business strategy type and absorptive capacity have moderating effects. The results are meaningful in both theory and practice.