The mediating role of competitive advantage in the effect of organizational ambidexterity and technological innovation capability on firm performance

The strategic management literature separately reveals that organisational ambidexterity and technological innovation capabilities are effective in competitive advantage and firm performance. However, studies have yet to be found in the literature investigating these two capabilities simultaneously and in a sectoral comparison. The current study aimed to reveal the mediating role of competitive advantage in the effect of organisational ambidexterity and technological innovation capabilities on firm performance and how this role varies according to sectors. Based on the resource-based view, this study used an empirical research method based on quantitative data. Primary data were collected by applying an online questionnaire to 777 people selected by random sampling method from the textile/apparel/leather sector representing the industry sector working under the Istanbul Chamber of Commerce (ITO) and the information technology sector representing the service sector in the province of Istanbul. The collected data were analysed using the SPSS program. The results reveal that competitive advantage mediates the positive and statistically significant effects of organisational ambidexterity and technological innovation capabilities on firm performance, and this mediation role differs by industry. The detailed findings of the present study provided insights into industrial and service sector businesses. Based on these findings, suggestions for researchers and business managers are presented in the conclusion section.