The Value of Organizational Ambivalence for Small and Medium Size Enterprises in an Uncertain World |
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| Authors: | Zhi Tang Pat Dickson Louis Marino Jintong Tang Benjamin C Powell |
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| Institution: | 1. Rochester Institute of Technology, Department of Management, Marketing, and International Business, E. Philip Saunders College of Business, Max Lowenthal Building, Building 12, Room 2327, 108 Lomb Memorial Drive, Rochester, NY 14623‐5608;2. Calloway School of Business and Accountancy, Wake Forest University, Box 7285 Reynolda Station, Winston‐Salem, NC 27109‐7285;3. University of Alabama, Department of Management and Marketing, Culverhouse College of Commerce and Business Administration, Box 870225, Tuscaloosa, AL 35487;4. Department of Management, John Cook School of Business, Saint Louis University, 3674 Lindell Blvd, St Louis, MO 63108;5. Center for Entrepreneurship, Walker College of Business, Raley 4091, Appalachian State University, Thelma C. Raley Hall, ASU Box 32089, Boone, NC 28608‐2089, USA |
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| Abstract: | Prior literature suggests two competing mechanisms for how organizations respond to environmental forces – absorption and reduction – but there is no consensus on which mechanism is more effective. We solve this puzzle by analysing one underlying dimension of these two mechanisms – organizational ambivalence – in a small and medium size enterprise context. Specifically, we believe that because of the difference in consuming resources, organizational ambivalence can be divided into latent and active, which exhibit different uses in dealing with environmental forces and improving firm performance. We conducted two studies in four countries to test our hypotheses. These two studies yield unanimous support for our hypotheses regarding the impact of organizational ambivalence on organizational performance and mixed support for our hypotheses concerning environmental impacts on organizational ambivalence. |
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