Is Ambidexterity A Myth? An Empirical Study Investigating the Impact of Ambidextrous Leadership as The Effect of Innovation Climate on Employee Innovation Performance.

Abstract

This research investigates to elaborate the relationship between ambidextrous leadership styles, innovation climate, and employee innovation performance in the banking sector, with a specific focus on Quetta, Balochistan. Grounded in a deductive reasoning approach and epistemological-positivism research philosophy, the study aims to explain the causal relationships among ambidextrous leadership behaviors, innovation climate, and employee innovation performance. Employing quantitative research techniques, data were gathered through structured questionnaires administered to employees of banks in the region, including the State Bank of Pakistan and various commercial banks, using a convenience sampling method. The sample, drawn from different departments, ensures the representation of the banking industry workforce in Quetta. Questionnaires encompassed demographic information and modified scales to measure ambidextrous leadership, leader open and close behaviors, innovation climate, and employee innovation performance. Analysis of the gathered data involved correlation analysis and hierarchical regression analysis using SPSS statistical software (version 27). Results revealed the significant positive correlations between leader open behavior, leader close behavior, innovation climate, and employee innovation performance. Furthermore, hierarchical regression analysis confirms the hypotheses, indicating that both ambidextrous leadership behaviors and innovation climate significantly influence employee innovation performance. Particularly, innovation climate moderates the relationship between ambidextrous leadership behaviors and employee innovation performance, amplifying their effects. This study contributes to the theoretical understanding of leadership and innovation within organizational contexts, providing valuable insights for practitioners seeking to enhance innovation and performance in the banking sector.