The effects of entrepreneurial orientation and Dynamic Capabilities on firm performance with mediating role of innovation ambidexterity

In order to gain competitive advantage and better performance, despite focusing on current requirements of customers firms should discover and meet the future demands. Therefore, ambidexterity should be considered as an essential factor in gaining competitive advantage. On the other hand, the combination of two factors of dynamic capabilities and entrepreneurial orientation can lead to innovation and, ultimately, better firm performance. In the study, the effect of entrepreneurial orientation and dynamic capabilities on firm performance with mediating role of innovation ambidexterity was investigated.

The present research is purposeful, applied and in terms of nature and method of data collection, descriptive-correlation. The statistical population of the research is production of protein products, canned meat and non-meat products in IRAN. sampling method is unpredictable and available and the data collection tool is a questionnaire. 80 managers were analyzed as samples. Data analysis was performed using the structural equation method by Smart-PLS software. Funding: findings show that ambidexterity has a significant effect on firm performance, entrepreneurial orientation and dynamic capabilities have a significant effect on ambidexterity. Also, role of ambidexterity mediation was confirmed in the impact of entrepreneurial orientation on firm performance. But the role of ambidexterity mediation was not confirmed by the impact of dynamic capabilities on firm performance.

To start ambidexterity, dynamic capabilities and entrepreneurial orientation should be taken into consideration. In other words, when a company has dynamic capabilities and flexible capabilities, Person is allowed use its own judgment to divide time between exploitative and exploratory activities.