Stemming the downturn: How ambidexterity and public policy influence firm performance stability during economic crises

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Reference

Doblinger, C., Wales, W., & Zimmermann, A. (in press). Stemming the downturn: How ambidexterity and public policy influence firm performance stability during economic crises. European Management Journal. (ABDC_2016: B; ABDC_2019: B; ABS_2018: 2; ABS_2021: 2; ISI_2016: 1.437; ISI_2016_5year: 2.608; ISI_2018: 2.985; VHB_3: B)

Publication type

Article in Scientific Journal

Abstract

A key question confronting policy makers during economic crises is how they can support firms to maintain their performance levels until the economic storm has passed. The present study bridges insights from the ambidexterity and public policy literatures to examine how firm-internal responses (that is, ambidexterity) and external public policy incentives (that is, demand-pull policies) affect the stability of firms' performance in a recessionary economic context. Using data from private German renewable energy firms at a time following the global financial crisis, we find that only firms with low ambidexterity achieve performance stability in light of demand-pull policies. This research draws attention to the relevance of stability as a policy-relevant performance measure during times of economic crises. Further, we suggest that greater insight into the interplay of managerial and political factors are necessary to enable policy makers to support the stability of certain industries during crises.

Research

Tackling the Complexity of Managing Paradoxes
FFF-Förderprojekt, May 2018 until August 2020 (finished)

Companies and organizations in general are facing an ever growing set of expectations from their different stakeholders. They are supposed to be efficient and profitable, they must be innovative and ... more ...

Persons

Organizational Units

  • Institute for Entrepreneurship
  • Chair of Entrepreneurship and Strategic Management

DOI

http://dx.doi.org/https://doi.org/10.1016/j.emj.2021.06.002