The role of TMT characteristics in the formulation and implementation of organisational ambidexterity

Increased competition and accelerated pace of changes have urged companies to seek ways to adapt to these environmental changes (Arthur, 1994). Companies have to adapt to these changes through continuous exploitation of existing competitive advantages and know-how while exploring new capabilities, products/markets and alliances. In addition, companies have to consciously balance between exploration and exploitation. While the issue of balancing is not a new problem or challenge, managers of companies continue to struggle with how to achieve the necessary balance. Scholars are researching different models and frameworks to support the establishment of sustainable competitive advantages and offer recommendations to companies on how to cope with turbulences in their environments. However, to date studies on organisational ambidexterity (OA) focus largely on explaining why OA is important, the antecedents and context factors of OA and how it can be realised through structural and behavioural contexts, while the different Top Management Team (TMT) characteristics and contexts within which they operate have not been explicitly studied. This qualitative research developed an enhanced understanding of the TMT characteristics that foster or hinder the balancing of conflicting requirements regarding the implementation of the four archetypes of OA developed by Simsek and co-authors (2009). It draws on and applies Heider’s (1946) Balance Theory where appropriate to provide a better understanding on which TMT characteristics affect strategy formulation and implementation within an OA context. A conceptual model of which TMT characteristics, ambidexterity mechanisms, and organisational and industry characteristics foster different archetypes of OA is developed for the Satellite Communications Industry. This research finding can be generally extended to companies and industries that have similar industry and company characteristics to the Satellite Communications Industry. However, for companies and industries that have substantially different environmental and industry characteristics, our findings may not be directly applicable and should be further investigated.