Organisational culture, business model design and performance: Does ambidexterity play a role?

Objective: The article aims to explore the relationships between cultural and innovation ambidexterity and novel business model design (NBMD) and trace their influence on business performance in the context of transition economies. Research Design & Methods: We adopted a cross-sectional survey design using data collected in 2019 from 175 managers and owners of Albanian firms across nine knowledge-intensive sectors. We employed structured questionnaires with validated multi-item Likert scales to measure constructs like ambidexterity, NBMD, and performance, followed by rigorous validity and reliability checks (CFA). The analysis used covariance-based structural equation modelling (SEM) with bootstrapping to test hypothesised relationships and assess indirect effects. Findings: Our study demonstrates that new business model design can capture the value created by organisational culture and innovation ambidexterity. More specifically, we found a chain relationship between ambidextrous organisational culture, innovation ambidexterity, novel business models, and business performance. These results support the view that, as a dynamic capability, ambidexterity affects performance indirectly through NBMD, while the performance outcomes of cultural ambidexterity are mediated by factors such as innovation ambidexterity and NBMD. Implications & Recommendations: We identified NBMD as a design theme aligned with contextual ambidexterity that can capture the value-creation potential of this form of innovation ambidexterity. Managers should consider adopting an NBMD when pursuing innovation ambidexterity, while government and development agencies should consider providing grants to start-ups experimenting with novel business models. Contribution & Value Added: This study represents one of the few attempts to investigate the relationships between organisational culture, capabilities and business models, contributing to the literature that focuses on identifying business models that can support paradoxical strategies, including ambidexterity.