How Do Managerial Ties Leverage Innovation Ambidexterity for Firm Growth?

Despite the potential of managerial ties to ease resource competition, caused by innovation ambidexterity and social capital theory, they differ in results depending on which type of managerial ties generates these benefits. To address this inconsistency, this study unpacks managerial ties into intra-industry and extra-industry ties and finds they give separate effects of innovation ambidexterity on firm growth. Based on social capital theory and innovation ambidexterity literature, we develop and examine three hypotheses with data from 207 firms. Intra-industry ties reduce, whereas extra-industry ties end up enhancing the positive effects of innovation ambidexterity on firm growth. This research contributes to both innovation ambidexterity literature and social capital theory.