The effects of different time horizons on the efficiency of simultaneous and sequential ambidexterity

: evidence from Corporate Venture Capital investing

Abstract

A thorough review of the existing literature on ambidexterity and ambidexterity in a Corporate Venture Capital (CVC) context, revealed the need for a deeper research regarding the effects that short- and long-term time horizons play in the relationship between the various forms of ambidexterity and financial performance. First, I attempt to support the positive relation between simultaneous and sequential ambidexterity and firm performance in a broader CVC context (by using Tobin’s Q as a general measure). Hereafter, a more detailed analysis on the role of the different forms of ambidexterity on financial performance is attempted by analysing the effects on both short- and long-term time horizons. The models in this paper found evidence that supported a positive relationship between simultaneous ambidexterity and Tobin’s Q, a general, short- and long-term indicator for firm performance. No significant relation was found regarding sequential ambidexterity, but the results hinted in a possible positive relation. A significant relation between sequential and simultaneous ambidexterity and the separate measures for short- and long-term performance could not be found. The main cause for this insignificance can be found in the limitations encountered during the data collection. These had a detrimental effect on the sample size, statistical noise and overall accuracy of the variables. Although the model was insignificant, the results hinted to a stronger short-term relationship between simultaneous ambidexterity and performance, and a stronger long-term relationship between sequential ambidexterity and performance.

Date of Award	27 Jan 2021
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Fátima Shuwaikh (Supervisor)