The Mechanism of Market Ambidexterity Driving Entrepreneurial Performance in New Ventures: The Mediating Effects of Business Model Innovation

Abstract

Abstract: The market exploration and exploitation are the key actions of New Ventures (NVs) in responding to potential and existing market demands, but the research on the coordination of them and their impacts on entrepreneurial performance needs to be deepened. This paper, drawing upon the ambidexterity theory and introducing novelty- and efficiency-centered business model innovation (BMI), explores the mechanism of market exploration and exploitation driving entrepreneurial performance in NVs. The research conclusions show, using empirical data collected from 183 NVs in China, the balance of market exploration and exploitation has positive effects on efficiency-centered BMI, while the interplay of market exploration and exploitation exerts positive influence on novelty-centered BMI. Meanwhile, efficiency-centered BMI has a positive impact on the new venture growth performance and customer performance, while novelty-centered BMI positively affects the new venture growth performance and investment performance. These conclusions provide several managerial implications for the coordination of market exploration and exploitation, thus promoting BMI to optimize entrepreneurial performance in NVs.

Key words: market ambidexterity, entrepreneurial performance, business model innovation, ambidexterity theory, new ventures

Li Wei, Wang Qing, Yang Xuecheng. The Mechanism of Market Ambidexterity Driving Entrepreneurial Performance in New Ventures: The Mediating Effects of Business Model Innovation[J]. Management Review, 2021, 33(3): 118-128.

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