Enabling Innovation Ambidexterity through Technological Capability and Readiness in Regulated Institutions
IEEE Access, vol.14, pp.96545-96560, 2026 (SCI-Expanded, Scopus)
- Publication Type: Article / Article
- Volume: 14
- Publication Date: 2026
- Doi Number: 10.1109/access.2026.3706343
- Journal Name: IEEE Access
- Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Compendex, INSPEC, Directory of Open Access Journals
- Page Numbers: pp.96545-96560
- Keywords: environmental dynamism, firm performance, Innovation ambidexterity, technological capability, technology readiness
- Bursa Uludag University Affiliated: Yes
Abstract
In highly regulated and technology-intensive environments, organizations face increasing pressure to innovate while maintaining compliance and operational stability. Although prior studies highlight the role of technological resources in driving innovation, limited attention has been given to how these resources are effectively activated into innovation capabilities in regulated contexts. This study develops and empirically tests an integrated capability activation framework explaining how technological capability, technological readiness, and managerial characteristics enable innovation ambidexterity and enhance firm performance. Grounded in the resource-based view, dynamic capability theory, microfoundations, institutional theory, and environmental contingency, innovation ambidexterity is positioned as a key mechanism linking technological resources to performance outcomes. Using survey data from 138 employees of a state-owned financial institution and analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM), the findings show that technological capability, technological readiness, and managerial characteristics significantly and positively influence innovation ambidexterity (p≤0.05). Technical support orientation significantly strengthens the transformation of technological resources into ambidextrous innovation (p≤0.05). Innovation ambidexterity, in turn, significantly improves firm performance, with stronger effects under high environmental dynamism (p≤0.05). Regulatory compliance also directly enhances firm performance (p≤0.05), indicating that institutional alignment functions as a strategic enabler rather than a constraint. This study contributes by extending the resource-based view through a capability activation perspective and identifying regulated environments as a critical boundary condition in the capability–performance relationship. Practically, the results highlight the importance of aligning technological readiness, managerial orientation, and technical support systems to maximize the performance impact of technological investments.