A theoretical model of organizational ambidexterity in hospitals

Abstract

This study defined organizational ambidexterity (OA) and offered a theoretical framework for its application in hospitals and human resource development (HRD) theory and practice. Lynham's (2000) general method of theory building research for applied disciplines was used to construct the model. A survey instrument was developed and pretested on a small sample, then mailed nationally to 6,000 directors working in 2,000 randomly selected hospitals. Forty-nine of 50 states participated in the survey. Wyoming was the only state from which responses were not received. Data were collected from 1,490 hospital directors and 893 hospitals and analyzed using principal components factor analysis, confirmatory factor analysis, analysis of variance, and multilevel modeling (MLM). Findings showed exploration and exploitation are two latent factors of one second-order construct; OA specifically. Findings revealed high levels of OA in hospitals generally and higher levels of OA in large hospitals than small ones. Investor-owned and not-for-profit hospitals reported similar levels of OA. Statistical evidence supported the notion OA is positively related to perceived quality and financial performance in hospitals. In the era of healthcare reform, theories and methods with potential for improving perceived quality and financial performance are relevant to meeting customer demand and sustaining hospital operations and strategy.