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Organizational ambidexterity and financial performance in the banking industry: evidence from a developing economy

Author

Listed:
  • Martin Owusu Ansah

    (Kwame Nkrumah University of Science and Technology)

  • Nicholas Addai-Boamah

    (Kwame Nkrumah University of Science and Technology)

  • Abeeku Bylon Bamfo

    (Kwame Nkrumah University of Science and Technology)

  • Lucy Afeafa Ry-Kottoh

    (Kwame Nkrumah University of Science and Technology, Private Mail Bag)

Abstract

The paper examined the relationship between organizational ambidexterity on the attitude of employees and the financial performance of the banking sector in Ghana. This quantitative research employed a survey to sample the views of 195 employees of the various commercial banks. Data were analyzed through structural equation modeling using the Smart PLS 3.0 software. The study revealed that exploitation and exploration factors positively and significantly predicted the attitude of employees at the banks; the attitude of the employees also predicted the financial performance, while exploratory factors had a positive and insignificant effect on the financial performance of the banks. The study also revealed that ambidexterity was not automatic among large firms as opined in the extant literature. There is the need to advance the exploratory section of ambidexterity in the banking sector—especially in a developing economy to augment banks' financial performance. The study contributes to the ongoing research in examining the linkage between organizational ambidexterity and financial performance. The strategic implication of the result is discussed in the paper.

Suggested Citation

  • Martin Owusu Ansah & Nicholas Addai-Boamah & Abeeku Bylon Bamfo & Lucy Afeafa Ry-Kottoh, 2022. "Organizational ambidexterity and financial performance in the banking industry: evidence from a developing economy," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 27(3), pages 250-263, September.
    • Handle: RePEc:pal:jofsma:v:27:y:2022:i:3:d:10.1057_s41264-021-00117-w
    DOI: 10.1057/s41264-021-00117-w
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