CEO goal orientations, environmental dynamism and organizational ambidexterity: An investigation in SMEs

Scholars have suggested that we need to further investigate the antecedents of ambidexterity at the top executive level. We develop a motivational perspective on organizational ambidexterity proposing that the different types of Chief Executive Officer (CEO) goal orientations (learning, approach and avoidance) may facilitate or hinder ambidexterity, and that these effects are conditioned by the level of environmental dynamism. Using a sample of 156 small and medium-sized enterprises (SMEs), we find a positive effect of CEO learning goal orientation on ambidexterity, which is strengthened as environmental dynamism increases. Further, we show that CEO approach goal orientation negatively affects organizational ambidexterity and this effect increases in highly dynamic environments. Finally, CEO avoidance goal orientation is negatively related to ambidexterity only when environmental dynamism is high. These results have important implications for our understanding of CEOs’ motivational characteristics in relation to ambidexterity under diverse environmental conditions.