Examining the interplay between managerial ties, dynamic capabilities and innovation climate in driving balanced and combined ambidextrous innovation

PurposeThis paper aims to adopt the dynamic capabilities view to investigate the relationship between managerial ties (i.e. business and political ties), dynamic capabilities and innovation climate on ambidextrous innovation (i.e. balanced and combined ambidextrous innovation), in the renewable and sustainable energy context. It also examines the mediating effects of dynamic capabilities between managerial ties and ambidextrous innovation (i.e. balanced and combined ambidextrous innovation), and moderating effects between dynamic capabilities and ambidextrous innovation relationships.Design/methodology/approachMultilevel analyses conducted using AMOS 26 on 288 employees working in 47 UAE energy firms.FindingsResults found that business ties influences balanced and combined ambidextrous innovation indirectly, whereas political ties only impact combined ambidextrous innovation indirectly through dynamic capabilities. Dynamic capabilities insignificantly mediated managerial ties-ambidextrous innovation and political ties-balanced ambidextrous innovation relationships, with stronger indirect effect on combined than on the balanced dimension. Findings also indicate that innovation climate is the crucial moderator between dynamic compatibilities and ambidextrous innovation, as well as balanced and combined ambidextrous innovation, with stronger effect on balanced dimension than the combined.Originality/valueThis study addresses recent calls by highlighting the role of dynamic capabilities, an important yet underexplored organizational capabilities in the innovation and ambidexterity literature. Also, this study advances insight into how balanced and combined exploration-exploitation innovation and dynamic capabilities are connected and enhances the understanding into how organizational factors stimulate dynamic capabilities leading to superior innovation.