Abstract

In the near past, management scholars and practitioners explore the concept of organizational ambidexterity that is the combination of exploration (new knowledge) and exploitation (application of existing knowledge) practices and their effect on organizational performance. Today's organizations are obliged to manage the conflicts and tensions arising from finding an appropriate balance between exploration and exploitation that may lead to yield synergistic effect. The current research attempts to empirically test the combined effect of exploration and exploitation (i.e., Ambidexterity) and organizational learning capacity on organizational performance in Medical Teaching Institutes (MTIs). A total of 220 doctors and head nurses are participated in the study. Data were collected through a structured questionnaire. Confirmatory factor analysis and Cronbach alpha were applied to test the scale validity and reliability. The results indicate that both organizational ambidexterity and organizational learning capacity have a significant relationship with organizational performance. Furthermore, market orientation moderates the relationship between organizational ambidexterity and organizational learning capacity with organizational performance. Thus, we conclude that the relationship between ambidexterity, organizational learning capacity, and organizational performance is higher when market orientation is high and vice versa. Implications and future suggestions are highlighted.

Key words: Ambidexterity, Organizational Learning Capacity, Market Orientation, Organizational Performance, MTIs