Ambidextrous Market Orientation and Innovation Performance: The Mediating Role of Entrepreneurial Capabilities

Document Type : Original Research Article

Authors

1 Associate Prof., Department of Industrial Management, Faculty of Management and Economics, University of Guilan, Guilan, Iran

2 Instructor, Department of Management, Faculty of Business Administration, Laval University, Quebec, Canada.

3 Department of Industrial Management, Faculty of Management and Economics, University of Guilan, Guilan, Iran.

4 Associate Prof., Department of Industrial Management, Faculty of Management and Economics, University of Guilan, Guilan, Iran.

5 Ph.D. Candidate, Department of Management, Lang School of Business and Economics, University of Guelph, Ontario, Canada.

10.22059/imj.2026.412919.1008308

Abstract

Objective: Innovation performance is a critical source of competitive advantage for knowledge-intensive firms operating in emerging markets. This study investigates how ambidextrous market orientation (AMO)—the simultaneous pursuit of exploratory and exploitative market strategies—affects innovation performance, examining entrepreneurial capabilities as a mediating mechanism and market knowledge competence as a boundary condition.
Methodology: Using survey data from 161 knowledge-based firms located in Gilan Science and Technology Park and affiliated research centers in Iran, we test a moderated mediation model through partial least squares structural equation modeling (PLS-SEM).
Results: The findings reveal that AMO does not directly enhance innovation performance; rather, its effect is fully mediated by entrepreneurial capabilities. Moreover, this indirect relationship is significantly contingent upon market knowledge competence, with stronger effects observed among firms possessing higher levels of market knowledge.
Conclusion: These results contribute to the literature by clarifying the micro-level mechanisms through which market ambidexterity translates into innovation outcomes in emerging economies. Practically, the study underscores the importance of cultivating entrepreneurial capabilities and market knowledge to effectively leverage ambidextrous market strategies for innovation. Beyond theoretical implications, the findings carry concrete guidance for managers of knowledge-based firms in emerging markets. First, firms should invest in building entrepreneurial capability as an organizational priority, recognizing that market intelligence alone does not translate into innovation unless the firm has the internal processes and agility to act on it.

Keywords

Main Subjects

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Industrial Management Journal
Volume 18, Issue 2
2026
Pages 265-297

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