Leveraging of Ambidextrous HR on Employee Innovation Performance: The Role of Absorptive Capacity

Abstract:

Purpose: Human resource practices are evolving at different rates across businesses to address the growing intensity of external challenges. Striving for innovation while managing the paradoxes between flexibility and efficiency has emerged as a critical challenge for survival in today’s highly competitive global landscape. The literature shed light on ambidexterity as a practical approach to navigating these tensions during the transition toward diverse and innovative HR practices. Based on the componential theory of creativity, resources-based view, and social exchange theory, this study explores the impact of ambidextrous human resources practices on employee innovation performance while examining the mediating effect of organizational absorptive capacity.  

Design/methodology/approach: Data were collected through an online questionnaire from employees of companies in diversified sectors in Egypt. The sample included 384 employees. The data were analyzed by structural equation modeling to test the research hypotheses using Smart PLS 4.0.

Findings: The results indicate support for all hypotheses. Ambidextrous HR practices significantly impact employees' innovation performance, and absorptive capacity mediates this relationship. The study also provides theoretical and practical implications.

Originality/value: This paper examines the effect of dual-oriented AHRP in business organizations, guiding managers to leverage ambidexterity in HRM to improve employee innovation performance by simultaneously fostering commitment and cooperation.