A Model for Creating and Implementing Ambidextrous Innovation in Iranian Banking

Objective As a key service sector, Iran's banking industry has encountered numerous challenges and difficulties in past years. One potential solution is embracing innovation, particularly ambidextrous innovation. Accordingly, this research aims to identify the factors influencing the development and implementation of ambidextrous innovation within Iran’s banking sector and to prioritize them using a structural-interpretive model (ISM). Methodology This research adopts a pragmatist paradigm and utilizes a hybrid approach that integrates practical objectives with diverse data collection methods. It studies Iran's banking industry, focusing on a statistical population comprising experts, university professors, senior bank managers, and specialists in innovation, technology, digital transformation, and process re-engineering. These individuals possess significant knowledge, expertise, and responsibility in the domains of strategy, decision-making, and the implementation of innovation in banks. The research utilizes a judgmental sampling method. This study was conducted in two stages: qualitative and quantitative. In the qualitative stage, content analysis was employed. The study began with a review of the existing literature on ambidextrous innovation, followed by interviews with 24 experts from the banking sector. These interviews helped identify the key factors influencing the development and implementation of ambidextrous innovation in the industry. In the quantitative phase, a questionnaire was distributed among 13 experts. The data collected was used to develop a self-interaction matrix and to proceed through the stages of structural-interpretive modeling (ISM). Ultimately, the factors identified in the qualitative stage were prioritized and presented in a structured model. Findings Based on the findings of this research, the qualitative section identified 67 components, 15 concepts, and 6 main categories that influence the creation and implementation of ambidextrous innovation in the banking industry. The six main categories are the executive process mechanism, organizational learning, the role of leadership style in innovation, the development of technological infrastructure, organizational foundation, and understanding the turbulence of the competitive environment. In the quantitative section, these factors were classified into three levels. The first level included the executive process mechanism, organizational learning, and the creation of technological infrastructure. The second level embraced the role of leadership style in innovation, and the third level comprised the organizational foundation and understanding of the turbulence of the competitive environment. Ultimately, the final research model was developed based on these classifications. Conclusion Based on the findings, banking industry managers should prioritize strengthening the organizational foundation and enhancing their understanding of environmental turbulence, as these factors have the most significant influence and are least affected by other variables. In the next phase, they should focus on fostering innovative and collaborative leadership styles to facilitate the creation and implementation of ambidextrous innovation. Finally, managers need to develop technological infrastructures, emphasize organizational learning, and implement knowledge management practices within banks, ensuring that the execution of ambidextrous innovation becomes operational. The findings suggest that adopting ambidextrous innovation—balancing exploratory and exploitative approaches—can transform Iran's banking industry into a more dynamic sector. Ambidextrous innovation can enable banks to overcome organizational stagnation and employee disengagement, fostering the development of diverse financial products that effectively meet customer needs. Furthermore, the research indicates that the creation and implementation of ambidextrous innovation can enhance the performance of Iran’s banking and financial ecosystem. One potential outcome is the formation of networks and alliances among different elements of the banking ecosystem, facilitating financing for the value chains of businesses. This highlights the significant role of ambidextrous innovation in reshaping Iran's banking system.