Ambidexterity capacity, absorptive capacity, and business performance of Taiwan's communication information companies
by Wei-Chuan Wang
International Journal of Mobile Communications (IJMC), Vol. 24, No. 2, 2024

Abstract: Based on the view of absorptive capacity, this study constructs a dynamic theoretical framework of resource investment, ambidexterity capacity, and business performance. The data of Taiwan's listed and OTC communication information companies are used to examine the correlation between the ambidexterity capacity and business performance, as well as its moderating effect. The results show that R&D expenses are negatively related to business performance. Moreover, the correlation between R&D capacities and business performance - influenced by the strong absorptive capacities of marketing investment and strong application capacities - turns from significantly negative to significantly positive adaptive. The theoretical contribution of this study is the discussion of the influence of resource investment on the constitution of ambidexterity capacity and the moderating role of ambidexterity capacity between resource investment and business performance; in the practical aspect, this study provides an operational analysis framework for the industry to test the effectiveness of resource allocation.

Online publication date: Thu, 01-Aug-2024

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