Flexible HRM and sustainable performance: employee ambidexterity as a micro-foundational mechanism

Purpose Grounded in the dynamic capabilities perspective, this study investigates how flexibility-oriented HRM, encompassing resource and coordination subsystems, shapes employee ambidexterity and, in turn, enhances the economic, social and environmental dimensions of corporate sustainability performance. Design/methodology/approach Data for were collected using a self-administered online survey, with 145 responses gathered from different industries across the United Arab Emirates. Partial least squares structural equation modelling (PLS-SEM) was employed to test four sets of hypothesised relationships in this study. Findings Mixed findings were observed. The results revealed that resource flexibility-oriented HRM (RFHRM) did not significantly impact employee ambidexterity (EA). In contrast, coordination flexibility-oriented HRM (CFHRM) had a positive and significant influence on EA. Whereas EA had no significant effect on the economic dimension of corporate sustainable performance (CSP), it significantly impacted both social and environmental dimensions. In terms of mediation, EA did not mediate the relationship between RFHRM and the three CSP dimensions. However, EA significantly mediated the relationship between CFHRM and both social and environmental dimensions of CSP. Originality/value Complementing the growing body of research on the strategic perspectives of corporate sustainability management, this study offers a unique contribution by explicitly examining the impact of FHRM and EA on CSP, providing valuable insights into how these factors work together to drive sustainability.