STRATEGIC AMBIDEXTERITY AND INTERNAL ORGANISATIONAL OUTCOMES OF MANUFACTURING FIRMS IN LAGOS STATE, NIGERIA

Authors

Keywords:

Employee satisfaction, Exploitation, Exploration, Leadership effectiveness, Manufacturing firms, Strategic ambidexterity

Abstract

This study examined strategic ambidexterity and the internal organisational outcomes of manufacturing firms in Lagos State, Nigeria. Two dimensions of ambidexterity were investigated: exploration and exploitation, with leadership effectiveness and employee satisfaction serving as the internal organisational outcomes. A cross-sectional quantitative survey design was adopted, and primary data were gathered through structured questionnaires administered to 410 managerial, supervisory, and operational employees across five selected manufacturing firms using purposive sampling. Data were analysed using Structural Equation Modelling (SEM) with AMOS, following a two-step approach comprising confirmatory factor analysis and structural path estimation. The findings show that exploration positively influences leadership effectiveness, indicating that organisations engaged in innovative and experimental activities tend to cultivate adaptive and participative leadership behaviours. Similarly, exploitation was found to positively influence employee satisfaction, suggesting that efficiency-driven practices and process refinement enhance employees' work experience and organisational commitment. These findings offer empirical support for the role of strategic ambidexterity in improving internal organisational outcomes within an emerging economy context, thereby contributing to the strategic management literature by demonstrating that balancing exploratory and exploitative capabilities is essential for advancing leadership dynamics and employee-related outcomes. It is recommended that manufacturing firms integrate innovation-oriented practices with operational efficiency strategies to strengthen leadership effectiveness, enhance employee satisfaction, and improve internal organisational outcomes.

Author Biographies

Oladele Ayodeji Ilesanmi

Professor Oladele Ayodeji Ilesanmi is a distinguished Nigerian academic and researcher in the field of business administration, with specialisation in marketing, business economics, entrepreneurship, and strategic management. He is affiliated with the Department of Business Administration at Osun State University (UNIOSUN), Osogbo, Nigeria. Over the years, he has contributed significantly to research on entrepreneurial orientation, small and medium enterprises (SMEs), innovation, and organisational performance. He has authored and co-authored numerous scholarly publications in reputable local and international journals, with his research focusing on enhancing business competitiveness, entrepreneurship development, and sustainable organisational growth in developing economies.

Akinpelu Ayobami Kolade

Mr Akinpelu Ayobami Kolade (FMNES) is a dedicated academic, researcher, and administrator with expertise in business administration, finance, and entrepreneurship. Mr Kolade holds an M.Sc. in Business Administration from Joseph Ayo Babalola University, a postgraduate diploma in education from the National Open University of Nigeria, a B.Sc. in Business Administration, and an HND in Banking and Finance.
He currently lectures at Nigeria Maritime University, Okerenkoko, Delta State, where he actively contributes to the academic development of students. He has also served in various administrative capacities, including departmental secretary and member of the examination committee in the Faculty of Business and Management Sciences at his previous institution. Mr Kolade is a member of the Faculty Editorial Board and engages actively in academic discourse, particularly within the Departmental Seminar Series for Business Administration.
His extensive teaching experience includes appointments at Federal Polytechnic, Ile-Oluji, and Joseph Ayo Babalola University, where he has taught a wide range of courses, including business policy and strategy, small-scale business enterprise, and entrepreneurship development. A prolific researcher, Mr Kolade has authored 16 international journal articles and 16 local journal articles, contributing valuable insights into entrepreneurial empowerment, leadership styles, financial inclusion, and sustainable business development. His research is centred on fostering business growth, economic development, and enhancing organisational performance, particularly within the Nigerian context. He is a member of the Nigerian Economic Society and is a certified teacher with the Teacher Registration Council of Nigeria. His academic and professional endeavours reflect a strong dedication to human resource development, marketing, and entrepreneurship.
Beyond academia, Mr Kolade is highly engaged in community service. He serves as the Deputy Coordinator of the Special Marshal Unit 32 Harmony, FRSC, and is an Area Pastor in the Redeemed Christian Church of God, Osun Province 3. His leadership extends beyond the classroom, and he remains committed to promoting community development through his various roles.

Dimensions

Ab Hamid, M. R., Sami, W., & Mohmad Sidek, M. H. (2017). Discriminant validity assessment: Use of Fornell and Larcker criterion versus HTMT criterion. Journal of Physics: Conference Series, 890(1), 012163. DOI: https://doi.org/10.1088/1742-6596/890/1/012163

Ambilichu, C. A., Omoteso, K., & Yekini, L. S. (2023). Strategic leadership and firm performance: The mediating role of ambidexterity in professional services small- and medium-sized enterprises. European Management Review, 20(3), 493–511. https://doi.org/10.1111/emre.12548 DOI: https://doi.org/10.1111/emre.12548

Baker, T., Mazzei, M., & Miles, M. P. (2022). Achieving ambidexterity through strategic flexibility: Exploitation, exploration, and performance in turbulent environments. Journal of Business Research, 139, 721–732.

Batool, R., Tian, Q., Zhou, E., & Hasan, N. (2024). Impact of internal identity asymmetry on employees' behaviours and feelings: A mediating role of psychological distress. Heliyon, 10(10). DOI: https://doi.org/10.1016/j.heliyon.2024.e31438

Bidmon, C. M., & Boe-Lillegraven, S. (2020). Now, switch! Individuals' responses to imposed switches between exploration and exploitation. Long Range Planning, 53(6), 101928. https://doi.org/10.1016/j.lrp.2019.101928 DOI: https://doi.org/10.1016/j.lrp.2019.101928

Bustinza, O. F., Lafuente, E., & Vendrell-Herrero, F. (2020). Product-service innovation and performance: The role of collaborative partnerships and R&D intensity. Research Policy, 49(7), 103963. https://doi.org/10.1016/j.respol.2020.103963

Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Lawrence Erlbaum Associates.

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. DOI: https://doi.org/10.1177/002224378101800104

Gentry, W. A. (2021). Be the boss everyone wants to work for: A guide for new leaders. Berrett-Koehler Publishers.

Hair, J., Hult, G., Ringle, C., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). Sage.

Hair, J., Matthews, L., Matthews, R., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: Updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107–123. https://doi.org/10.1504/IJMDA.2017.087624 DOI: https://doi.org/10.1504/IJMDA.2017.087624

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Cengage.

Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook. Springer. DOI: https://doi.org/10.1007/978-3-030-80519-7

He, Z. L., & Wong, P. K. (2021). Exploration vs. exploitation: An empirical test of the ambidexterity hypothesis. Organization Science, 15(4), 481–494. DOI: https://doi.org/10.1287/orsc.1040.0078

Indartono, S., & Chen, C. H. V. (2011). Moderating effects of tenure and gender on the relationship between perception of organisational politics and commitment and trust. South Asian Journal of Management, 18(1), 7–36.

Kharuddin, A. F., Azid, N., Mustafa, Z., Ibrahim, K. F. K., & Kharuddin, D. (2020). Application of structural equation modelling (SEM) in estimating the contributing factors to satisfaction of TASKA services in East Coast Malaysia. Asian Journal of Assessment in Teaching and Learning, 10(1), 69–77. DOI: https://doi.org/10.37134/ajatel.vol10.1.8.2020

Kline, R. B. (2023). Principles and practice of structural equation modeling (5th ed.). Guilford Press.

Kong, T., & Zhao, S. (2022). Ambidextrous leadership and firm performance: The mediating role of employee creativity and organisational learning. Journal of Knowledge Management, 26(4), 887–910.

Lawrence, E. T., Tworoger, L., Ruppel, C. P., & Yurova, Y. (2022). TMT leadership ambidexterity: Balancing exploration and exploitation behaviors for innovation. European Journal of Innovation Management, 25(3), 703–719. https://doi.org/10.1108/EJIM-07-2020-0275 DOI: https://doi.org/10.1108/EJIM-07-2020-0275

Lee, J. Y., Seo, Y., Jeung, W., & Kim, J.-H. (2019). How ambidextrous organizational culture affects job performance: A multilevel study of the mediating effect of psychological capital. Journal of Management & Organization, 25(6), 860–875. https://doi.org/10.1017/jmo.2017.38 DOI: https://doi.org/10.1017/jmo.2017.38

Manufacturers Association of Nigeria. (2024). Publications. https://www.manufacturersnigeria.org/publications

March, J. G. (1991). Exploration and exploitation in organisational learning. Organization Science, 2(1), 71–87. DOI: https://doi.org/10.1287/orsc.2.1.71

Marsh, H. W., Hau, K. T., & Wen, Z. (2004). In search of golden rules: Comment on hypothesis-testing approaches to setting cutoff values for fit indexes and dangers in overgeneralising Hu and Bentler's (1999) findings. Structural Equation Modeling, 11(3), 320–341. DOI: https://doi.org/10.1207/s15328007sem1103_2

Memon, M. A., Ting, H., Ramayah, T., Chuah, F., & Cheah, J. H. (2017). A review of the methodological misconceptions and guidelines related to the application of structural equation modelling: A Malaysian scenario. Journal of Applied Structural Equation Modeling, 1(1), 1–13. DOI: https://doi.org/10.47263/JASEM.1(1)01

Mulaik, S. A. (2007). There is a place for approximate fit in structural equation modelling. Personality and Individual Differences, 42(5), 883–891. DOI: https://doi.org/10.1016/j.paid.2006.10.024

Nwachukwu, C., & Olusanya, O. (2023). Strategic ambidexterity and organisational resilience in Nigerian firms: A configurational approach. African Journal of Management, 9(2), 115–138.

O'Reilly, C. A., & Tushman, M. L. (2021). Lead and disrupt: How to solve the innovator's dilemma (2nd ed.). Stanford University Press. DOI: https://doi.org/10.1515/9781503629639

Pak, J., Heidarian Ghaleh, H., & Mehralian, G. (2023). How does human resource management balance exploration and exploitation? The differential effects of intellectual capital-enhancing HR practices on ambidexterity and firm innovation. Human Resource Management, 62(6), 933–952. https://doi.org/10.1002/hrm.22180 DOI: https://doi.org/10.1002/hrm.22180

Purwanto, A., & Sudargini, Y. (2021). Partial least squares structural equation modelling (PLS-SEM) analysis for social and management research: A literature review. Journal of Industrial Engineering and Management Research, 2(4), 114–123.

Schnellbächer, B., Heidenreich, S., & Wald, A. (2019). Antecedents and effects of individual ambidexterity: A cross-level investigation of exploration and exploitation activities at the employee level. European Management Journal, 37(4), 442–454. https://doi.org/10.1016/j.emj.2019.02.002 DOI: https://doi.org/10.1016/j.emj.2019.02.002

Spector, P. E. (2020). Job satisfaction: Application, assessment, causes, and consequences (2nd ed.). Sage.

Sun, M., & Zhao, X. (2023). Influence of organizational ambidextrous culture in manufacturing enterprises on service innovation performance. Sustainability, 15(20), 14969. https://doi.org/10.3390/su152014969 DOI: https://doi.org/10.3390/su152014969

Tempelaar, M. P., & Rosenkranz, N. A. (2019). Switching hats: The effect of role transitions on individual ambidexterity. Journal of Management Studies, 56(8), 1517–1539. DOI: https://doi.org/10.1177/0149206317714312

United Nations Industrial Development Organization. (2024). Industrial development report 2024: Turning challenges into sustainable solutions: The new era of industrial policy. https://www.unido.org/news/unido-publishes-industrial-development-report-idr-2024

World Bank. (2024). Nigeria development update: Building momentum for inclusive growth. World Bank. https://www.worldbank.org/en/country/nigeria

Zahoor, N., Khan, H., & Al-Tabbaa, O. (2024). Strategic ambidexterity and international performance of SMEs: Moderating role of international entrepreneurial orientation. International Business Review, 33(1), 102043.

Zhang, W., & Wood, S. (2022). Awareness of age-related change, chronological age, subjective age and proactivity: An empirical study in China. Frontiers in Psychiatry, 13, 915673. DOI: https://doi.org/10.3389/fpsyt.2022.915673

Published

2026-10-21

How to Cite

Ilesanmi, O. A., Ojo, E. O., & Kolade, A. A. (2026). STRATEGIC AMBIDEXTERITY AND INTERNAL ORGANISATIONAL OUTCOMES OF MANUFACTURING FIRMS IN LAGOS STATE, NIGERIA. FUDMA Journal of Business Management, 4(2), 33-54. https://doi.org/10.70882/fjbm.2026.v4i2.93

Issue

Vol. 4 No. 2 (2026): FUDMA Journal of Business Management

Section

Articles
Copyright & Licensing

Copyright (c) 2026 Oladele Ayodeji Ilesanmi, Emmmanuel Olusola Ojo, Akinpelu Ayobami Kolade (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

How to Cite

Ilesanmi, O. A., Ojo, E. O., & Kolade, A. A. (2026). STRATEGIC AMBIDEXTERITY AND INTERNAL ORGANISATIONAL OUTCOMES OF MANUFACTURING FIRMS IN LAGOS STATE, NIGERIA. FUDMA Journal of Business Management, 4(2), 33-54. https://doi.org/10.70882/fjbm.2026.v4i2.93