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Quality ambidexterity, competitive strategies, and financial performance: An empirical study in industrial firms

Ahmad Herzallah (Al-Quds University, Jerusalem, Palestine)
Leopoldo J. Gutierrez-Gutierrez (Department of Business Administration, University of Granada, Granada, Spain)
Juan Francisco Munoz Rosas (Department of Quantitative Methods for Economy and Business, University of Granada, Granada, Spain)

International Journal of Operations & Production Management

ISSN: 0144-3577

Article publication date: 2 October 2017

1783

Abstract

Purpose

The purpose of this paper is to examine the relationship between quality ambidexterity (QAMB), competitive strategies (cost leadership, differentiation, and focus), and firm performance in Palestinian industry, and to analyze the combination of quality exploitation (QEI) and quality exploration (QER) (QAMB) associated with the different levels of each competitive strategy.

Design/methodology/approach

Using data collected through a survey of 205 Palestinian industrial firms, the study conducted structural equation modeling to test the proposed relationships. Additional statistical analyses were applied to the combinations of QEI and QER for each competitive strategy.

Findings

The results show a positive and significant relationship between QAMB and three competitive strategies, and between competitive strategies and financial performance, focus strategy excepted. Balanced combination with similar levels of QEI and QER is found to be more suitable for higher levels of competitive strategies implementation, whereas an excess of QER over QEI is associated with lower levels of strategies implementation.

Research limitations/implications

Although Palestine has two regions, the West Bank and the Gaza Strip, all survey respondents were from the West Bank. The data used in this study come from the industrial sector only.

Originality/value

This study is the first empirical test to examine the impact of QAMB on financial performance through competitive strategies. The study results may help managers to implement QEI and QER practices in order to allocate resources effectively and ultimately improve financial performance.

Keywords

Citation

Herzallah, A., Gutierrez-Gutierrez, L.J. and Munoz Rosas, J.F. (2017), "Quality ambidexterity, competitive strategies, and financial performance: An empirical study in industrial firms", International Journal of Operations & Production Management, Vol. 37 No. 10, pp. 1496-1519. https://doi.org/10.1108/IJOPM-01-2016-0053

Publisher

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Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited

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