The dynamic capability of ambidexterity in hypercompetition: qualitative insights

Abstract

While dynamic capabilities are relevant for firms operating in hypercompetition, the sustainability of dynamic capabilities in hypercompetitive markets is a critically important issue that requires further exploration. We examine ambidexterity (a type of dynamic capability) in both hypercompetitive and non-hypercompetitive markets to provide an insight into its role in hypercompetition. Our qualitative findings from multiple case studies suggest that as markets become increasingly hypercompetitive, the dynamic capability of ambidexterity may need to be adopted as a temporary rather than sustainable source of advantage. However, the findings also reveal that depending on the hypercompetitive industry, ambidexterity can vary in terms of its status as a key success factor. We contribute to theory by enhancing an understanding of ambidexterity as a dynamic capability in hypercompetition and provide practical insights for managers regarding the consequences of hypercompetition for their marketing strategy.

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